Can It Be? FAFSA a Detriment in Admissions?

It's come to this: need blind is dead. Some colleges today are more likely to accept students who can afford the college. I don't think we're at the money-trumps-qualifications stage yet, but it seems to me it's a slippery slope.

Here's a news report that looks at the latest admissions angst.

Williams has begun admitting more international students able to pay the full cost of tuition, and this year it will once again include loans as part of financial aid packages. The article also says Middlebury and Wake Forest have begun to look at the financial aid status of wait-listed students when they consider admission. Tufts University, which used to admit all students on a "need-blind" basis (students were admitted regardless of ability to pay in 2007 and 2008), is once again "need-aware" for some applicants, which means it looks at the applicant's financial status. some noted schools that still have need-blind admissions are raising costs for higher-income families.

From the article: "Mark Kantrowitz, founder of FinAid.org, a financial-aid Web site, estimates that about 5% of the application pool may increase their chances of being admitted by not applying for aid—with international and wait-listed students seeing the greatest benefit. If the school does practice need-blind admissions, he says, ask if that policy also applies to international or wait-listed students."

It's possible we may be facing a new era of admissions. The view isn't pretty.

Help from an Expert on Financial Aid Questions

Here's a seven-part series, a financial aid Q&A that, if you are patient in reading through it, you are bound to find useful.

It looks at a number of issues related to the FAFSA as well as more arcane financial aid questions.

One thing we should all remember: if financial circumstances change (loss of job, substantial decrease in salary or loss of a minor's Social Security benefits when he turns 18, for example) it is difficult to make this clear on the FAFSA form, particularly if the event occurs mid-year and is not reflected in tax forms. That's when you call the financial aid office of a school your child is interested in or has been accepted by. And you ask for a professional judgment review, aka a special circumstances review or financial aid appeal. Once the college has the required documentation of this change in situation, it will make an adjustment to the FAFSA form. By the way, colleges are not required to make this adjustment but have been strongly encouraged to do so, in a letter from the Department of Education.

Happy reading!

We Can't Talk Enough About Money

I recently attended a session at our high school given by a financial aid officer at a local college.

He reviewed a number of issues, including key points about the Free Application for Federal Student Aid (FAFSA). New in 2011-2012 will be a major redesign of FAFSA on the Web (FOTW) that includes the ability to retrieve data from the IRS that may be transferred to FAFSA.

He also listed two other strategies for making college more affordable: accelerated learning (taking two classes each summer can shorten the stay in college by a semester, for example) and living off-campus, which enables the room and board costs to be paid monthly, rather than in a lump sum. Finally, he stated that students who have some financial stake in the process (even if it is just paying for books or personal expenses) seem to take their college experience more seriously. I can't verify that, but it sure makes sense.

Meanwhile, here's a nice tidy list of financial aid myths -- good reminders for those of us just starting to think about financial aid.

Money Talks at Colleges; Money Talks Should Be Held in Families

Here's a cheery bit of information to end the week . Dean Sklaris has been a college administrator, has taught, consulted with the ACT and now has his own business advising families on college matters.

He mentions that 100 colleges now cost more than $50,000 a year; that admissions and financial aid are not separate activities but entwined, and that it is easier to get in if parents can pay the full bill; that those who get financial aid are the kids the schools really want -- star athletes, brilliant students or those with special talents.

Sklaris' advice is to consider the financial issues early, and discuss them as a family. "If parents want to pay less, they need to understand which colleges want their child most and why. They must consider cost early in the process, and be realistic in considering schools that are not among the top brands. There are hundreds of 'hidden gems' across the country, and families who approach the process strategically stand a better chance of finding them."

The Things This Blogger Does for You, Dear Reader

So, I signed up (and paid for -- a huge step on my part) a four-part online course called Inside the College Admissions Process, hosted by Jacques Steinberg, national education correspondent for The New York Times. It's to be an inside view, with interviews with several deans of admission, of the selection process. And then I was going to provide Mom's College Cram Course readers with the highlights.

And I will, one day, once I am sent information on how to get into the course. There seems to be a problem with admissions to the course on admissions. Will start to share when I am able.

On the financial aid front, President Obama wants Congress to extend a tax break called the American Opportunity Tax Credit, that provides as much as $2,500 a year per student for expenses such as tuition, books and other related supplies. It might be worth contacting your congressman if you think it is worthwhile.

Meanwhile, this is my 100th post. So please let me know what is useful/what more is needed, so the next 100 can be fully tailored to parents' needs.

Financial Aid -- Dark Arts or Straightforward Math?

So, what do 5,000 high school counselors and college admissions officers talk about when they gathered for the annual meeting of the National Association for College Admission Counseling?

No surprise that one topic was financial aid -- and how naive some parents are about the admissions/aid process. Here's an interesting look at the situation, one that places some blame with parents, some with the schools that don't understand the concept of transparency.

A point to consider. If students receive financial aid, it is important for families to understand, and make sure they are comfortable with, the form it takes: loans, work study, etc. There aren't a whole lot of free rides out there.

Put Tools to Use in Figuring Financial Aid

Starting in fall 2011, the federal government has mandated that colleges make available more sophisticated financial aid calculators to help determine actual costs of college. Today, only about 26 percent of students or their families use such calculators.

According to a recent poll of high school students, families aren't doing their homework, early enough in the process, to make rational decisions about financial aid. As a result, some students don't even try for certain colleges, believing they can't afford them. On the other hand, a majority of students (and their families) seem ready to "stretch" financially for a school that offers what they perceive as worth a higher cost.

Take a look at the poll; it offers a number of reminders of ways to approach this important element of the admissions process.

Wasted Deposits = Opportunities?

I just learned about "summer melt", and no, it isn't the hot weather version of a sandwich classic. It's when students who paid deposits to attend a college decide to go elsewhere. With applications up at so many schools this year and students putting down deposits while they wait to hear from wait list schools, there's likely to be more summer melt than previously.

This might mean that more financial aid is available. Of the accepted students who decide not to attend, a good portion probably received financial aid offers. So now, the unclaimed money is back in the pool. There's no harm in an accepted student contacting the financial aid office to make a case for more aid -- and mentioning if there has been a change in circumstances (parent's job loss, etc.)

As of earlier this month, there were 240 colleges still accepting students because they hadn't met their desired enrollment levels.

There are still opportunities out there.