Archived - Differences Among Students And Their Families--Managing the Price of College

Archived Information

Differences Among Students And Their Families

Income. Most financial aid is need-based; in other words, it depends on the difference between the price of attending a given college and a family's ability to pay. When you apply for financial aid, the college will use a formula to determine how much you and your family are expected to contribute. The formula takes into account family income and other factors. Using this formula, colleges come up with an "Expected Family Contribution (EFC)." When you decide to apply for financial aid, your EFC will determine how much need-based financial aid you will be eligible for.

Income isn't the only factor that determines if you get aid, how much aid, and what types of aid you might get (grants, loans, or work study). There are other factors. Income is, however, the main factor, so the tables in this handbook show you average aid awards for people in different income groups. This provides a good general guide. Your chances of getting aid, and the amounts you actually get, will vary from other people within your income group. The factors that determine how aid may vary for you are described in the section About Percentages and Ranges.

Year in college. Students are eligible to borrow more the further they get in college. This means that in the early years, students get more of their financial aid from grants than they do in later years. In later years, they are asked to borrow more and get less from grants. Tables in this handbook show averages for all years in college.⁴

In addition to the factors cited above, what you pay to attend college will depend on a number of choices that you will make, discussed below.

Hard work in high school. Merit scholarships are given to outstanding athletes and to students with very good academic records (like the National Merit Scholarships). In part to attract or reward specific students, colleges give out some of these scholarships (gift aid) without considering financial need.

About 9 percent of students at 4-year public colleges get merit scholarships.
A similar percent of students who attend public 2-year colleges, 8 percent, get merit scholarships.
Students at private 4-year colleges are more likely to get merit scholarships. About 23 percent get this type of assistance.⁵

Not very many students get merit scholarships. But for those who do, it can really help. This is another reason to study hard and do well in high school.⁶

Attending part time. Some students pay for college by working while going to school part time. It naturally takes longer to finish college this way. Yet some students choose to study part time for many reasons. Part-time students usually pay less, but also get less financial aid. The tables in this handbook are based on the experiences of full-time students - they will not apply to you if you are planning to study part time. In that case, you should consult with your college's financial aid office to see what types and amounts of financial aid may be available to you.

Attending in-state or out-of-state. If you go to a public college outside your home state, you usually have to pay more. How much more? The answer depends on which state you are considering. Figures in this handbook are based on students studying in their state of legal residence. To find out the price of attending a public college in another state, contact the admissions office of the college you are interested in.

ATTENDING A PUBLIC COLLEGE IN ANOTHER STATE

In 1996, over 80 percent of public 4-year college students attended a school in their home state. An increasing number of students, however, are crossing state lines to attend public colleges. Unless a college student can establish legal residency in the state where the college is located, he or she will pay an out-of-state tuition rate. Even with the additional charges, attending an out-of-state public college may be less expensive than attending a private school. It is important to keep in mind, however, that colleges that charge more often make up for the difference with additional institutional financial aid.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study: 1995-96.

Attending college as an independent student. Approximately half of all college students in 1995-96 attended as independent students. If you are financially independent of your parents, your parents' financial circumstances are not considered in calculating financial aid. To be independent you must:

be 24 years of age by January 1 of the school year in question; or
be married; or
have a dependent other than a spouse; or
be an orphan or ward of the court; or
be a veteran of the armed services.

INDEPENDENT STUDENTS

Independent students are much more likely to attend college part time than dependent students, 67 percent compared to 30 percent in 1995-96.
About half, 48 percent, of independent students received financial aid in 1995-96.

SOURCE: U.S. Department of Education, National Center for Education Statistics, National Postsecondary Student Aid Study: 1995-96.

Figures in this handbook are for dependent students only. Independent students should get information from the college they are interested in attending.