On College: Does applying for financial aid impact admissions?

While students are busily working on their essays and applications, parents are anxiously running the numbers to figure out how to pay for college. Many are worried that applying for and needing money may negatively impact their children's college choices. And the answer to that question is a resounding ... maybe.

But before you call the bank to find out how to take a second mortgage on the house, let me explain.

Whether applying for and needing aid will in any way influence an admissions decision, there are many factors to be considered. Is your child applying for Early Decision? Are the colleges to which he is applying Need Blind, Need Aware, or a combination of the two? Does your financial situation demonstrate a "need" for financial aid?

Let's go step-by-step. First, applying for financial aid and needing financial aid are two very different things. Just applying for aid will not hurt you at any schools. In fact, applying for aid guarantees you Stafford Unsubsidized Loans or a Parent PLUS loan.

So if you want to keep those as options, you must apply for aid. But the fact that you filled out the forms does not impact the school. So the first thing you want to do is get an understanding of where you stand financially. Colleges and the federal government use a complex algorithm to calculate a family's Expected Family Contribution (EFC), the total college expenses you will be expected to pay. But there are some great online

calculators that you can use to plug in your numbers and get an estimate. And if you are not sure whether you will qualify for or need the money down the road, go ahead and apply.

Second, let's distinguish between need-based aid and merit-based aid. Families are guaranteed need-based aid in the form of government loans and grants. The amounts are determined by the above mentioned algorithm.

Merit-based aid is money that is given out by schools to motivate students to attend. Merit based aid and scholarships can also come from other organizations and are not limited to one specific school. In many cases, families do not need to apply for need-based aid to become eligible for merit-based aid.

Now, look at the schools where your child is applying and find out if they are Need Blind or Need Aware. Need Blind means that the admissions office and the financial aid office work independently. At these schools, needing money does not at all complicate the admissions process, unless your child has been waitlisted in the regular round, which will not happen until March at the very earliest. At that point, colleges may take into account finances to fill in those last few seats. But you can then withdraw your financial aid application if it makes sense strategically.

Need Aware means that the admissions office may consider a family's financial situation when selecting students for the incoming class. In many cases, this is done for a very small percentage of students versus an entire class. You can contact the financial aid offices to clarify which schools are Need Aware. They do not hide that fact.

You must also take into consideration in which round your child is to apply. If he is applying for Early Decision, which is binding, schools have less of an incentive to provide merit-based aid. The school can use those funds during the regular round to entice other students. This does not mean that no merit-based awards are given to Early Decision applicants, but the numbers go down substantially. Before using this as a reason to not apply Early Decision, though, first look to see if the school gives any merit-based funding. Many schools do not, and you are guaranteed need-based funding.

I know that bringing money into the equation complicates college admissions further. Here is a simple rule of thumb: If you need money to send your child to school, by all means apply for aid. If you do not need the money, but want to take your chance, remember that applying for and needing money do not go hand in hand.

Purvi S. Mody is co-owner of Insight Education, an educational consulting firm that helps students throughout the Bay Area to achieve their educational goals. Email her at purvi@insight-education.net.

Source: http://www.mercurynews.com/columns/ci_21832357/college-does-applying-financial-aid-impact-admissions?source=rss

basketball wives manny ramirez easter 2012 bachelor jeremy lin espn sassafras mardi gras 2012