Does financial need factor into the college admission
decision and if so, how does it affect applicants and to what extent? Adding to the anxiety about college
admissions is the question about how to handle and interpret application questions
on financial aid. Parents, especially
those who are not sure whether they will qualify for assistance, often ask
whether checking “yes” to the need-based aid question might negatively impact a
student’s chance for acceptance.
Like many questions related to college admission, the answer
is rarely so straightforward. Students, of course, want to maximize the
probability of admission without jeopardizing their opportunity to receive
financial aid for college. Some schools
profess to be need-blind, meaning that they do not consider ability to pay in the
admission decision. That may sound like
good news; however, it does not necessarily mean that the college will provide
adequate financial aid to enable the student to attend once admitted. New York University, a need-blind university,
does not claim to meet demonstrated need and generally comes up short by more
than 30% of the cost. Admitted students
are counseled by admissions, only after acceptance, that attending the
university might not be a sound decision if it requires excessive
borrowing.
Certain need-sensitive
colleges take a different approach to college admission, choosing to give more
aid to fewer students rather than put affordability out of reach for many. Several
of the more selective need-sensitive colleges, in fact, admit most though not all students without regard
to their ability to pay. When it comes
down to the final 2-20% of the admission decisions (depending on the college), ability
to pay becomes the deciding factor. Is this more palatable than offering a spot in
the class without providing the means to pay for it? Wesleyan University believes
so, yet met with protests from students, parents and alumni when it switched
from a need-blind to need-aware or need-sensitive policy this past May, stating
that it would now consider ability to pay when filling the last 10% or so of
the class. The college chose to alter
its admission approach so that it would still be able to meet the demonstrated
need of every admitted student. A list of the small group of Colleges-that-claim-to-meet-full-financial-need
was published by U.S. News & World Report earlier this
year.
Whether a college is need-blind or need-aware, families
should have an understanding about what they can afford to pay and what amount
of borrowing is manageable, even before the applications are submitted. The
unfortunate truth is that need is an unavoidable topic in most college
admission offices. Colleges do not have unlimited financial aid budgets and most
have to factor this into the equation. You can decide to try to game the system
and avoid checking the will you apply for
need-based financial aid? box, but if you honestly do not have the ability
to pay, you are not doing yourself or your child a favor. That being said, it is a good idea to
understand the likelihood of your receiving aid as you work through the
process.
Here are some guidelines on how to think about the
application financial aid question to help you evaluate its potential impact on the
admission decision for your child:
-
Is the school in question a reach, mid-range or
likely for your child? If he or she is not at the high end or at least in the
upper half of the admitted student range in terms of academic performance or
some other compelling factor, having a financial need probably works against him/her
in the admission process. A student with
money and the same academic qualifications has a better chance of being
admitted.
-
The most selective colleges reserve their
financial aid for qualified students with demonstrated need rather than those
with the best academic record. At places
where admission is less selective, merit tends to rule. Many colleges use financial aid as the carrot
to lure the most desirable students, whether they need financial assistance or
not. In search of ever-improving rankings, colleges essentially pay to attract
the high performers.
-
More schools “gap” than do not; they expect that
you will fill the balance of your need with student or parent loans. So even if your Expected Family Contribution
or EFC is less than the cost of attendance, don’t just assume that the college
will make up the difference with a grant.
One major caveat: some colleges disingenuously qualify loans as
financial aid; since loans must be paid back, be advised to distinguish them
from grant money which is a gift. If it
is not clear whether a financial aid “award” includes borrowed money, ask.
The best way to find out how need
factors into the admission decision at a particular college, if in doubt, is to
pick up the phone and call the school. Keep
in mind, however, that a need-blind policy will not necessarily work in your
favor if tuition is high and the financial aid policy is to gap. Net price calculators which can be found on
every college’s website are another tool at your disposal to estimate your
actual out-of-pocket cost per year. You
can also use College Navigator, a
Department of Education site, to get a sense for what families in your income
range typically pay at a given college. With these tools, you will be better informed
before checking the financial need box.
