Daily Aid 33: Financial aid professionals comment on the CSS Profile

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From Inside Higher Ed:

The reality that only about 7 in 10 students earn degrees after four years in high school has been widely deplored. But if that situation is seen as such a crisis, why aren’t more people upset about the fact that graduation rates in higher education are quite a bit worse?

That’s the fundamental question underlying a new paper by Mark S. Schneider, vice president for new educational initiatives at the American Institutes for Research who was, until a few weeks ago, commissioner of education statistics in the Bush administration’s Department of Education.

Comparing American higher education unfavorably to its peers internationally as well as to U.S. high schools, he zeroes in, particularly, on about 408 four-year institutions that graduate fewer than one third of their students, and calculates the cost of those “failure factories,” as he calls them, at about $770 million in federal grant aid and lost tuition payments, to the government and families.

Commentary

Here’s the part that a lot of people miss. Not everyone is meant to have a college degree. Not everyone is meant to go to college or succeed in college.

Here’s the even more shocking part to some: that’s okay. Just like everyone is not a painter, musician, dancer, scientist, etc., it’s okay if college isn’t the right choice for you, as long as you’re pursuing whatever is the right choice for you. True, there are generally more jobs and economic opportunities for degree holders than not, but at the same time, there are also plenty of people who do just fine in life without a college degree.

What matters most in the debate about the education of America is not whether you go to college or not, but whether you have an opportunity to go at an affordable cost if you want to go. Whether or not you go through that door, it should be unlocked and open if you want to go there.

That’s why we recommend investigating lots of options for education. For some people, a traditional 4 year education is neither possible nor desirable, but something like an online degree program might make sense, especially for an Associate’s Degree. For others, an apprenticeship in a trade might make sense, especially if you love doing what you do. Watching someone in a trade who is a master and loves what they do should be a source of inspiration, rather than denigration.

Scholarship Update

Bill Emerson National Hunger Fellowship. $21,500 for one year of service. The Bill Emerson National Hunger Fellowship, a project of the Congressional Hunger Center, is a unique leadership development opportunity for motivated individuals seeking to make a difference in the struggle to eliminate hunger and poverty.

Each year 20 participants are selected for this eleven-month program. Fellows are placed for half their term of service with urban and rural community-based organizations all over the country involved in fighting hunger at the local level, such as grass roots organizing groups, food banks, economic development agencies, local advocacy groups and faith-based organizations. They then move to Washington, DC to complete the year with national organizations involved in the anti-hunger and poverty movement, including national advocacy organizations, think tanks, and federal agencies. Through this unique program, the Bill Emerson National Hunger Fellows Program develops effective leaders with a deep understanding of hunger and poverty at both the local and national level that enables them to find innovative solutions and create the political will to end hunger.

Details at our free college scholarship search site.

Mail Bag

A couple of updates from fellow financial aid professionals about the question of EFC and the CSS profile from last week’s blogs and show.

Robin writes in:

You mentioned in the Friday mailbag that a student should look at their mandatory expenses and subtract this from the EFC.

This is already accounted for in the EFC. Income listed from work is given an Income Protection Allowance (I think 30%) and then they look at the state and zip code you list on the FAFSA and adjust for the Cost of Living in that area.

So it would be inappropriate to subtract these items from the EFC since it has already been accounted for.

I would just use the EFC. You could always consult the school to see what they are really looking for but they most likely want the EFC.

Gail writes in:

I tell people to put what they think they can reasonably contribute to educational expenses out of pocket for the year. This really shouldn’t include any amount they plan to borrow. It is a good faith kind of question that acknowledges the sacrifice and partnership that families are entering into for higher education. It also serves to flesh out those circumstances where the calculation (EFC) does not accurately match up to their true ability to pay (i.e. the offer is higher than the EFC calculation). Many families do in fact put zero and many families of significant means put a very low number. This doesn’t affect the calculation of their EFC, but it could potentially impact an appeal decision if the impression they have given is that they are unwilling to be a partner in meeting the higher education costs for their child and assume as much of their responsibility to contribute to their child’s education as they are able to.

Many thanks to both Gail and Robin for their suggestions about how to handle that box on the CSS Profile. Easiest suggestion: file the FAFSA and use the EFC for that box. If the EFC is wildly out of alignment with your actual ability to pay, then be sure you can document how it’s different.

If you’re wondering whether you should put something different down than the EFC, be sure to do your personal budget to find out just how much discretionary income you do have, versus how much you think you might have. A personal budget is absolutely essential whether or not you’re a student!