College Admissions: The Real Cost of the Most Expensive Colleges
Monday, July 04, 2011
Need and Merit Aid is Abundant
There are basically two kinds of college-based financial aid. The first is need-based aid, which is dictated by family income and assets. Among the colleges listed as the most expensive this year, 7 of the top 10 guarantee to meet 100% of demonstrated need, and the rest have historically met above 90% of need. These are wealthy schools that want to ensure they don’t miss out on smart, high achieving students who may be socio-economically disadvantaged. The College Board and other Web sites provide data on the amount of financial aid given out at each college. Remember that the Ivy League is also famous for structuring their tuition models based on income. So, if your family earns less than $60,000 a year, you don’t pay anything at Harvard, and many elite institutions have eliminated or minimized student loans. In the end, if you have need, what you pay at an elite college is likely to be very low.
The second type of financial aid is merit aid which is awarded based on grades, SAT scores and leadership skills. For exceptional athletes or special talent students (music, art, dance, theatre) there are additional scholarships. While about a dozen colleges in the U.S. don’t offer merit aid, most do. George Washington University, which came in at #8 on the federal government list of most expensive colleges, awards about 27% of students merit aid, and the average amount is just over $21,000 a year. Tulane ranks as the 15th most expensive college in the country, but a whopping 42% of students receive merit aid and the average award is about $22,000!
Net Price Calculators
Families will soon have a new tool to help them understand the real cost of college at each institution. The federal government is requiring that all colleges post a net cost calculator on their website by October 31, 2011. Many have already complied. The calculators take into account income, grades and other factors, and will give families an estimate of what the student can expect to receive in grants, loans, work study and other forms of financial assistance.
Sticker Price vs. Your Cost
The most important thing for families to know is that the sticker price of a college really doesn’t mean anything. You have to pull back the covers. In addition to the new net price calculators, financial aid officers at individual colleges are more than happy to answer your questions about what kind of aid is available and the amounts you are likely to receive. So, don’t be afraid to pick up the phone and ask the tough questions at colleges before you rule them out.
Cristiana Quinn, M.Ed. is the founder of College Admission Advisors, LLC which provides strategic, college counseling and athletic recruiting services for students. www.collegeadvisorsonline.com.
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