Tips for Comparing Financial Aid Packages

• Find out how outside scholarships (that is, those not granted by the college or the government) will be handled. Will the college financial aid office deduct any or all this entire amount from the loan? From the grant? From both? Colleges vary on this and will be willing to explain their policies to you.
  
  It's against the law to over-fund a student. That is, no student is allowed to receive more need-based financial aid than their calculated "need", and no student is allowed to receive a total amount of financial aid (including both need-based and merit-based aid) that exceeds the total cost of attendance. For example, let's say a student's need is calculated at $30,000 (which is fully covered by need-based financial aid), and the total cost of attendance is $40,000 per year. Now the student is awarded an outside scholarship of $5,000...what happens? If the outside scholarship is need-based, then the student has too much need-based aid and something has to be reduced. The college may reduce its own scholarships, grants, or work-study. But hopefully they will reduce the student's loans first. If the outside scholarship is merit-based then the student should be allowed to keep it, since the total amount of need-based and merit-based aid is still under the total cost of $40,000. However, this is when a college's philosophy about how to treat outside scholarships comes into play.
  
  
• Don't assume that a less expensive school will necessarily cost you less. Look very carefully at the amount of aid each place is offering you and compare that to the total cost of attendance to find out what each college will cost you and your family.
  
  
• If there is a discrepancy in the amount of aid you have been awarded at comparably priced colleges, contact the financial aid offices. It might be that one application asked information that another didn't and so your family contribution was calculated differently. If you are able to supply more information, you may be able to get a more generous award. On the other hand, it might be that one college simply gave you a more generous package. Financial aid officers might be able to match an award from a competitor school, particularly if they are interested in recruiting your child. Be honest with the financial aid officer. Tell him or her what the other college has offered.
  
  Alan was torn when one college offered his daughter $8,000 in merit aid and her preferred college offered no aid. Alan called the favored college, explained the situation, and it was able to match the merit award. Both dad and daughter were happy with the outcome. If you go out on a limb and bluff to a financial aid officer, you'll get caught, as most colleges will require a copy of the other offer letter of aid to verify the difference. But honest negotiation is worth a try—the worst thing that can happen is that the college will say no.
  
  
• Colleges have different amounts of aid available and distribute aid with different philosophies. These differences become very clear as you compare awards made by colleges able to meet total need with awards made by colleges practicing need gapping. In addition, some colleges package their financial aid with merit taken into consideration. That is, they sweeten the pot by lowering the loan and upping the grant for students with special appeal.
  
  
• Don't be surprised if you as parents don't agree with your child on the value of the varying awards and the value of the varying educational experiences. Be patient, be clear, and try to listen to your child to hear what he really wants and needs. Passionate arguments and lots of door slamming can be avoided by trying to communicate reasonably and calmly.