FAP763: The Dark Side of No-Loan College Admissions

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FAP763: The Dark Side of No-Loan College Admissions

24 March 2008 1 views No Comment

FAP763: The Dark Side of No-Loan College Admissions

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Student Financial Aid News
+ Great analysis piece on Inside Higher Ed about the darker side of colleges going no-loan
+ For colleges that go no-loan without being need-blind without changing the total amount of aid awarded, you effectively have more financial aid going to fewer students
+ Quick primer: need blind means that the ability to pay for school is not a consideration for financial aid or admissions
+ For the vast majority of private colleges that are not need blind, some percentage of slots are awarded not to the best applicants, but to the best applicants who can pay.
+ When a non-need-blind college goes no loan, it means that the financial aid budget is used up faster – and that means more slots awarded not to the best students, but to the best students who can pay sticker price, ultimately excluding more low-income students
+ Those low or middle income students who are the very best of the best will get in and get a free ride
+ Those low or middle income students who are great but not the cream of the crop will not get in, period, unless the college has a mega-billion-dollar endowment and a willingness to spend it, or are willing to pay sticker price
+ What does this mean for you? Look for colleges that are need-blind when searching for a college to attend, or reading financial aid award letters
+ Be aware that at a need-aware school, you will probably need to take out both federal student loans and private student loans if you are strongly intent on attending the school and paying sticker price
+ Be aware that at a need-aware school, you may actually pay sticker price.

Scholarship Update
+ I Heart Tap Water Student Video Contest
+ Have you got love for tap water? Food & Water Watch is challenging college students from around the U.S. to declare their love for tap water –– and get it on film. Breaking the bottled water habit means not only recognizing the health, environmental and economic costs of bottled water but also building renewed confidence in tap water that is safe and affordable. Show your love for tap water by participating in the I Heart Tap Water Video Contest!
+ The Challenge: To produce a 30 second to 3 minute video that includes the following three elements:
+ A declaration of your love for tap water
+ Some discussion about bottled water consumption
+ Make the case for why your school or any campus should give up bottled water
+ Our first place winner will receive a $1,500 award, and his or her video will be featured prominently on the Take Back the Tap website;
+ the second place runner–up will receive a $500 prize; and
+ the third place winner will receive a Take Back the Tap gift bag.
+ The contest begins on February 14th, 2008 and submissions will be accepted until April 14th, 2008.
+ Details at our free college scholarship search site

Mail Bag
+ Bill writes in: I have student loans from undergraduate and graduate school leading to an MA in art therapy and I am now a licensed mental health professional working in Florida in that industry. I have, years ago, already consolidated my student loans. Is there now available to me a means of either further consolidating my loans or obtaining loan foregiveness due to my working in the mental health care industry? Thank you.
+ Depends on the kind of loans and the kind of work you’re doing, as well as the kind of loan forgiveness program
+ Typically, once you’ve consolidated your student loans, it’s a one and done deal
+ Check out the Loan Forgiveness section of StudentScholarshipSearch.com
+ Helen writes in: Hi Chris – My daughter is a junior and I’m searching for scholarships and grants. If she actually gets any before I file the FAFSA next Jan. and she applies to schools, will it count against us in terms of EFC? How do they count if she gets them after the EFC is determined? Thanks! Helen
+ Outside scholarships do count against your EFC, which is a minor negative, but that is far outweighed by the fact that it’s money you don’t have to repay
+ You can try to time it for the first year, but obviously it catches up with you each subsequent year
+ Better to start early, apply early, and land as many as possible as a strategy

Promo
+ Financial Aid Podcast Live: Surviving the Credit Crunch

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