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CarolynLawrence
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| Joined: | Sun Mar 5th, 2006 |
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Posted: Tue Apr 29th, 2008 07:15 pm |
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Here's an article from US News and World Reports talking about some counselors reporting schools as being "stingier" with financial aid this year.
I'm not sure I would say this is a new "trend." Out of the 2600+ colleges in the US, only about 50 promise to meet full need, so that means the other 2540 gap at least some admitted students every year. I don't think that has changed significantly, although I suppose it is possible that the "gap" at some schools has widened. (I'd like to see hard data on that, however, before calling it a trend).
http://www.usnews.com/articles/education/2008/04/28/some-rich-students-merit-financial-aid.html
Last edited on Tue Apr 29th, 2008 07:20 pm by CarolynLawrence
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leftcoast
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Posted: Tue Apr 29th, 2008 10:41 pm |
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I just want to point out that even if things remained the same, it could be a lot tougher this year than in the past because of other economic factors. $4/gallon for gas & rising air fares, rising food costs, health care, etc. -- all of those combine to make it much harder for families to meet their EFC, much less stretch to fill a gap.
So the GC's may be hearing a lot more complaints.
Also, as tuition & housing costs go up, the gap part might increase, especially for colleges that typically rely mostly on state & federal grants & loans for financial aid, which would be true at many public schools. I mean -- the kid who qualifies for the maximum Pell Grant + Cal Grant + subsidized loans may still be getting that, but the overall COA is higher than it ever was before.
Last edited on Tue Apr 29th, 2008 10:47 pm by leftcoast
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DesperateDad
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Posted: Tue Apr 29th, 2008 10:51 pm |
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| With USNews interest in education, I would hope that their jouralists could do better research. This article is just a lot of anecdotes looking for a story, IMO. For example, how much total merit aid did ASU give out the year before? [I just picked that stat bcos both Arizona schools give out 'merit' aid to attract OOS kids. And, of course, a 4.0 in-state resident with high test scores can attend for practically free, but neither is fact is new, or a change in policy.] Last edited on Tue Apr 29th, 2008 10:52 pm by DesperateDad
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CarolynLawrence
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Posted: Wed Apr 30th, 2008 01:07 am |
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Leftcoast, good point about the economy affecting people's perceptions and financial need. Certainly, for some people who counted on using home equity loans to pay for part of college, slipping housing prices might mean less money is available. But, the reporter didn't focus on that - he made it sound like colleges themselves were the ones at fault, not the economy.
I think I agree with DD -- there wasn't much in terms of substantial facts in the article. For instance, US News could have used its own online database to compare the percentage of students who were gapped this year at selected schools to in previous years.
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CardinalFang
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Posted: Wed Apr 30th, 2008 01:17 am |
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I wonder how it will be next year, when (most likely) the US will be in a recession, and housing values will be way down so parents won't be as able to borrow against the house to finance tuition. Will applications be up at publics? Will privates with stingy aid see decreasing yields?
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bumpyroad
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Posted: Wed Apr 30th, 2008 02:44 am |
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This was an oddly pointed report. The trend toward more merit aid and less need-based aid has been happening for quite a while, in part fueled by USNWR and its rankings (which I didn't see mentioned at all.)
This seems like a culmination of the last 25 years of excessive college inflation. When I was an undergrad in the seventies federal aid really did pay for a public school. That no longer appears to be true. I don't think the rise of merit aid is to blame for the gap issue. The real problem is that there isn't nearly as much aid money out there relative to the need.
I too worry about the difficulties that inflation will pose in the next four years. My D will be going to school 3000 miles away. Princeton is about as generous as anywhere when it comes to FA, but they've allocated $900 for travel for next year. I have a feeling that won't be enough to cover it. And the schools will be hurtiing in their own right - the cost of food and energy has been stable for the last 15 years or so, but that's no longer true, so they'll start losing more money on their fixed costs.
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outwest
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Posted: Wed Apr 30th, 2008 05:10 am |
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bumpyroad, Our D, too, will be far- about 2,500 miles away. That travel allotment does seem low considering they usually figure four trips home a year: Fall break (do they have a Fall break there?), Winter, Spring and home for Summer. That doesn't include Thanksgiving, which I am fairly certain she will not be able to come home for (too far and too short a time). Many don't come home for Spring or Fall when they live so far away, but her Fall break is a full ten days. Her college did not break out the travel expenses, although some of her other offers did. The three that did alloted between $1,500 and $2,000 for travel. Her college may not have broken it out, but it does seem included in the offer.
We did get a great deal when we went to visit, though. It cost just under $250.00 a person roundtrip on Southwest for a three day purchase Spring special (email offer only). You should set up email alerts with your favorite airline. I bet they do things like that, too. I am waiting for the next one to book up for the first year. After that she may not want to come home so much if my older two are any example.
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jocelynDAD
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Posted: Wed Apr 30th, 2008 06:12 am |
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Bumpyroad and Outwest:
Since your children will be traveling from major airports on either coast, you will be able to get decent air fares (if ordered ahead), although the fuel $$ will be impacting the Airlines as well.
Travel costs as computed by colleges are only for the student and for the four trips for beginning and end of each semester. Fall and Spring breaks and Parent visitations are extra.
Bumpyroad, living as we do in Plainsboro which is across Rt 1 from Princeton, we use both the Philly (PHL) and Newark (EWR) airports as driving time is about the same. You will find that either Philly or Newark Airports can serve your child at Princeton. Further, train sevice from Newark is very direct and easy and from Philly, almost as easy, just need to change trains in downtown Philly and in Trenton and of course take the local to Princeton from Princeton Junction. So getting to either airport is convenient with train service (at both airports) right at the terminals. If you have any questions re: train service or about the Princeton area amenities, send me a PM, be glad to answer.
So when looking for best prices check both airports. 
Last edited on Wed Apr 30th, 2008 06:13 am by jocelynDAD
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outwest
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Posted: Wed Apr 30th, 2008 07:05 am |
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If they are just considering two round trips then $900 is about right for full fare of $450 round trip. That even seems a little generous as lower prices can be had if booked early. They should consider the other breaks, though. I guess they only consider the ones they mae the students move out of the dorms?
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bumpyroad
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Posted: Wed Apr 30th, 2008 02:10 pm |
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The $900 travel allowance doesn't seem that low given current prices. I'm more concerned about the inevitable fuel-based price increases in the next year. Or maybe not inevitable - the airlines seem pretty good at driving themselves bankrupt in the name of competition. Overall I think we're in for a few years of high inflation as the economy adjusts to a lower dollar - it's not like we could keep buying cheap TVs from China forever without consequence. So, we'll have to hope for the best in keeping up with cost increases at college.
JDad - thanks for the advice about getting to Princeton. The ease in getting there was one attraction for me. My D was also accepted at Middlebury and Williams, which would have been harder (and more expensive) to get to.
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DesperateDad
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Posted: Wed Apr 30th, 2008 04:09 pm |
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| I think its much more important to look at the total out-of-pockets, not individual line items. For example, my son's school allots $1800 for travel from Calif (which I thought extremely generous), but his school still had loans as of last year. So, the extra travel allotment is eaten up by a Stafford. OTOH, Princeton eliminated loans several years back, so even with the lower travel allowance, it's still less expensive in total.
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outwest
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Posted: Thu May 1st, 2008 02:05 am |
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Depending on if they met the full need off of the fafsa and/or profile. Some colleges say they meet full need, but they determine the need and they don't tell you how they determine it, either.
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Chedva
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Posted: Thu May 1st, 2008 01:24 pm |
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| About airline prices - remember if you're looking on line you may be seeing only the fares themselves. But many airlines have recently tacked on a "fuel surcharge" which, in some cases, was more than the fare itself! And you may not see these surcharges until you're ready to hit the "Buy now" button on a reservation. Another way to hamstring the poor consumer.
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