MERIT SCHOLARSHIPS AND FINANCIAL AID FOR STRESSED OUT PARENTS J. Carey Thompson Vice President for Enrollment and Communications Rhodes College

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What this is about

Find and make possible the best college match for the student so that she reaches her fullest potential to become a productive member of society.

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What it isn’t about

Finding the cheapest deal

Cost of attendance Tuition and fees

Direct costs typically charged by the college: Cost of meal plans on +

Cost of living in dorms

campus

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Indirect costs that may not be charged by the college: Allowance for Books and supplies

Allowance for Personal expenses + and a few meals out

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Allowance for Transportatio n

FAFSA Overview

FAFSA Overview Free Application for Federal Student Aid is • an online application • collects demographic and

financial information about the student and family. • normally filed electronically • New timeline – October 1st,

2016

https://fafsa.gov

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Key Points • Additional Forms may be required • Institutional scholarship application • CSS/Financial Aid PROFILE® • Documents required to verify specific information or

evaluate special circumstances • Net Price Calculator – NPC • EXPECTED FAMILY CONTRIBUTION - EFC

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Determining Need Cost of Attendance – Expected Family Contribution = Demonstrated Financial Need ________________________________________ 3 examples – High, Medium and Low

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Ivy League option

$65,250 (Cost of Education) -

$40,000 (Expected Family Contribution) $23,000 (Demonstrated Financial Need)

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Great Liberal Arts College in Memphis

$55,000 (Cost of Education) -

$40,000 (Expected Family Contribution) $15,000 (Demonstrated Financial Need)

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Florida Four Year Public

$21,500 (Cost of Education) -

$40,000 (Expected Family Contribution) $0 (Demonstrated Financial Need)

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Three Ways to Pay BEFORE

DURING

AFTER

Parents' Savings

Need based aid

Educational Loans

Student's Savings

Merit based aid

Finance Programs

529 Programs

Federal/State Grants Third Party Grants College Work Study Parents' Earnings Student's Earnings

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Two Types of Assistance • Need based aid – also called financial aid • Merit based aid – also called merit scholarship • A student can have both forms, one form, or neither

form depending on • demonstrated financial need • ability and talent (depending on college) • enrollment and revenue goals of the institution.

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Need Based Aid • Institutional Grants • State and Federal Grants • Student Loans • Federal College Work Study

• Parents Loans - PLUS

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Merit Based Aid • Institution specific • Wide range of values and reasons to offer • Merit aid typically will fill financial need first if there is

need. • May or may not require a separate application. • 3rd party scholarships

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Truths “Your fact sheet states that your average need-based package is roughly $30,000. We seem to come in well below this number.” (FC of $45,668) “Rhodes was my first choice, so when I received the financial aid award package, I was extremely disappointed. The amount that my family would have to contribute for my education is simply too much to ask.” (FC of $250,000 – academic scholarship of $13K/yr) • Families with more resources should expect to pay more

for college.

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Truths “It should also be mentioned that $75,000 in one fund does not belong to us – it is inherited money my sister-in-law has asked to remain in our possession as she may be going through a divorce soon.” • Colleges can’t provide for what might happen in the

future.

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Truths “I have a twin brother planning to attend Stanford University…he received no financial aid from them, so ideally, my father wishes that Rhodes would fully cover my tuition.” (FC $999,999). • If you have an asset, you are expected to make it

available as a resource for college expenses.

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Truths “Among our detailed expenses, you will see $540 a month for a housekeeper. We routinely work 50 and 60 hr weeks, and the expense is necessary for a person to come twice per week.” • Discretionary family expenses are discretionary and

not a case for more aid.

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Truths “Now, how often have you had the chance to have an Irish dancing football player on campus? Miles’ inseam is 36” giving him excellent leg extension on his kicks….” • Colleges distribute of scarce resources based on their

mission, values and limitations. • Individual colleges do things the way they do because they can or because they have to.

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Miles’ inseam

• Never, under any circumstances, reveal your child’s

inseam

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Value and Values Focus on your well informed evaluation of the value of the institution Focus on you child’s interests and abilities and your family values – do your homework.