Too “rich” to receive financial aid for college?
It’s a bigger problem than you might realize: many students are finding themselves unable to attend the school of their choice due to their family’s finances–and it isn’t because their family is poor. In fact, their family might be classified as “rich” based on parental income. But what happens when you’re too “rich” to qualify for financial aid, yet not quite rich enough to realistically put your child (or children!) through the college of their choice? Are loans the only option? Here are things to consider!
Two types of financial aid
Colleges generally offer two types of financial aid: need-based financial aid and merit-based financial aid. As “need-based” might suggest, need-based financial aid is reserved for students from families with “demonstrable financial need” as determined by the college or university in question. Whether you qualify for need-based financial aid is often a result of your Expected Family Contribution number as calculated by the FAFSA–the Free Application for Federal Student Aid. Need-based aid may come in the form of grants, which don’t need to be paid back, or in the form of loans, which come with terms for repayment.
Merit-based aid, on the other hand, is awarded on the basis of merit–that is, a record of achievement in some area, be it academic, artistic, or athletic. For families who make too much for significant financial assistance but not enough to shell out as much as $70,000 a year for one child to attend a private college, the best course of action is to seek out colleges that offer merit-based aid, such as many public universities with honors programs.
School-specific and external merit-based scholarships
Furthermore, it’s wise to encourage your children to be proactive and apply for external merit-based scholarships. Also important to remember is the fact that many colleges and universities have scholarships for which students are NOT automatically considered. Make sure your children do their research and apply for ALL available scholarship offerings. Assuming that you’ll be automatically considered for all scholarships simply by applying to college can lead you to miss out on thousands of dollars of scholarship assistance. Sites like FastWeb.com provide an extensive database of scholarship offerings.
Colleges and universities that offer merit-based aid
Honors programs at public universities tend to offer generous merit-based aid to offset the cost of college. Check the websites of colleges and universities you’re interested in for more details. And if you still want your child to go to a private college, here’s Time Magazine’s list of the 50 best private colleges for merit-based aid.
The bottom line
Families who make $150,000 or more a year or have valuable financial assets may find it quite difficult to get financial aid for their children. Should such families really be expected to pay as much as $70,000 a year to send their children to prestigious private schools? Especially for families who are on the lower end of the “rich” spectrum and have multiple children, it may be much wiser indeed to encourage students to apply to competitive and well-regarded colleges and universities that offer generous merit-based aid.
Don’t forget the SAT and ACT
Particularly if your family is classified as too “rich” for financial aid, it’s important to do well on the SAT and ACT! Doing everything you can to ensure your child is eligible for merit-based scholarships starts in high school. With a little preparation, you can find an affordable college for your child no matter WHAT your income is. Let us know if you need any help with test prep, college readiness, or college admissions essays! We’re here to help 🙂
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That’s it! For more college advice, as well as help on college admissions essays and SAT and ACT prep, check out the rest of our blog. Need private test prep tutoring or college essay workshopping? That’s why we exist. Don’t be a stranger! Contact us today.