An Example Of Financial Aid
As I was doing my research for tonight's post it occurred to me that although we've begun to discuss the many ways to pay for college and even some great sites to help you out, we have neglected to provide the entire picture. Below is the text of an article that I found on Howstuffworks.com.
A Financial Aid Example
As we already explained, need analysis and packaging policies can and do vary from institution to institution. Here is an example of what might happen (where I work) at Duke University:
We ask the family to complete and submit the PROFILE and FAFSA no later than February 1. (We require tax forms, but those aren't due until May 1.) We also invite them to submit letters that explain any extenuating circumstances that might affect their family's ability to support educational expenses.
At Duke, students are admitted without reference to their need for financial aid. This policy of "need-blind admissions" means that we do not determine an applicant's aid eligibility until after the student has been admitted. As soon as we are notified of a student's admission, we pull together the application materials, determine aid eligibility and prepare awards for those who are eligible. Who will be eligible? The formula we use considers a wide variety of circumstances -- there is no one answer. However, here is an example of a fairly typical applicant's award:
The Smiths are a family of four. Both parents work, and Melissa, the Duke applicant, will be the only one in college next year. Family income is roughly $60,000, and their assets are pretty standard relative to their income. They own their own home and have offered no unusual circumstances.
Cost of Attendance--$34,000
Parent Contribution-- 12,000
Student Contribution-- 2,000
--------------------
Demonstrated Need-$20,000
Demonstrated Need--$20,000
Work Study -- + 1,800
Loans-- + 4,600
Grants-- + 13,600
--------------------
Total Award-- $20,000
A Financial Aid Example
As we already explained, need analysis and packaging policies can and do vary from institution to institution. Here is an example of what might happen (where I work) at Duke University:
We ask the family to complete and submit the PROFILE and FAFSA no later than February 1. (We require tax forms, but those aren't due until May 1.) We also invite them to submit letters that explain any extenuating circumstances that might affect their family's ability to support educational expenses.
At Duke, students are admitted without reference to their need for financial aid. This policy of "need-blind admissions" means that we do not determine an applicant's aid eligibility until after the student has been admitted. As soon as we are notified of a student's admission, we pull together the application materials, determine aid eligibility and prepare awards for those who are eligible. Who will be eligible? The formula we use considers a wide variety of circumstances -- there is no one answer. However, here is an example of a fairly typical applicant's award:
The Smiths are a family of four. Both parents work, and Melissa, the Duke applicant, will be the only one in college next year. Family income is roughly $60,000, and their assets are pretty standard relative to their income. They own their own home and have offered no unusual circumstances.
In this case, the parents' contribution would likely range from $8,000 to $12,000. Melissa's contribution in this example is $2,000, with $1,900 coming from summer earnings and $100 coming from Melissa's savings. The cost of attending Duke for next year will be approximately $34,000. For illustration purposes, let's assume that the parents contribute $12,000. So here are the numbers (all figures are in U.S. dollars):
Cost of Attendance--$34,000
Parent Contribution-- 12,000
Student Contribution-- 2,000
--------------------
Demonstrated Need-$20,000
In addition to guaranteeing need-blind admissions, Duke meets 100 percent of each student's demonstrated need. Here is how this works:
Demonstrated Need--$20,000
Work Study -- + 1,800
Loans-- + 4,600
Grants-- + 13,600
--------------------
Total Award-- $20,000
The number of siblings in school at the same time is important. Parent contributions generally go down by 40 to 50 percent if more than one child is in school. Remember, this is just one example, and your results are likely to be different. For specific details, contact your prospective institution's aid office.
===>I found this to be a great example of not only building on the loan route when paying for school but also leveraging your school of choice to make it possible for you to attend. Here is a link to the actual article where you can read about the entire financial aid process. Happy reading and please let me know what you think.
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