Applying to Schools: Financial Aid

Financial Aid Based on Need
Schools award financial assistance when the amount a family is able to contribute to a student’s education for the year falls short of the annual school costs. Whether or not a family is eligible for need-based aid depends on the costs of the school and the income of the family adjusted for several factors which include expenses, assets and indebtedness or liabilities.

School catalogs usually include deadlines for submitting required financial aid forms. Make note of these important dates for each of your selected schools and be certain that the forms are completed and mailed on time.

While schools attempt to meet the financial needs of each family, acceptance to the school does not imply nor guarantee that a family’s financial needs will be met. You may be notified that, according to the school’s evaluation of your family’s financial situation, there is no demonstrated need. It is possible to appeal this decision; however, you should not expect a change in the decision unless there has been a drastic change in your financial condition since you submitted your original financial information. If you are not eligible for need-based financial aid, you may want to look into applying for loans and/or merit scholarships.

You may also be notified of acceptance to the school but not awarded financial aid due to a shortage of financial aid funds. In such situations most schools will try to guide you to other sources.

Merit Scholarships
Independent schools may award assistance based on a student’s outstanding performance in academics, athletics, or extracurricular pursuits. Although a number of schools seek to attract the students they want by awarding scholarships for athletic prowess or academic merit, the actual amount of the award may vary and depends on your child’s excellence in some valued endeavor. Be certain to check the guidelines and requirements of such programs if they are offered.

Loans
An increasing number of schools have developed loan programs in order to close the gap between a family’s resources and school costs. Schools will combine grants with loans according to your family’s financial situation and the school’s financial aid policy.

There are also several non-profit organizations that guarantee and administer parent loan programs. Although all loans must one day be repaid, the terms of these loans tend to be favorable: the interest rates are low and repayment of the principal is often deferred until the student graduates from college. Each school or organization has its particular loan terms. Parents should ask schools for a list of available loan programs.

Go to next topic: Financial Aid (part 3).