Financial Aid; Can you negotiate?

Among the three or four most frequently asked questions about financial aid is whether or not it is possible to ask for and receive an increase in aid.

The answer is "yes" for some, and "no" for others, depending on a number of variables.

It is accurate to say, however, that in some instances, meeting with a financial aid or admissions counselor can lead to a better financial aid package than the one offered initially.

Every student who applies for financial aid is required to fill out a free federal financial aid form (FAFSA) on which there are questions related to family assets and income. In some instances, colleges will also ask financial aid applicants to provide additional information on an institutional financial aid form.

The financial information on a student's FAFSA is fed into a formula to determine whether or not he or she is eligible for federal grants and/or subsidized (low interest) student loans. Understand that other kinds of aid, including many scholarships and unsubsidized loans, do not require established need, but federal grants and subsidized loans do. You also need to realize that federal dollars can not be used to award more dollars than required to meet a student's full need.

So, unless you make a mistake on your FAFSA, you'll only be able to increase your federal financial aid if you can demonstrate to a financial aid counselor that you have suffered financial reversals since submitting your FAFSA or that you are the victim of special circumstances. Generally, a successful appeal requires solid documentation.

Institutional financial aid, however, can be a different story. Individual colleges and universities can offer you grants and scholarships even if you have no financial need. But, not all choose to do so. The very most selective colleges tend to offer money only to those with demonstrable financial need (and meet the full need of all students).

Many colleges employ their own scholarship monies as a tool to compete with more prestigious or less expensive institutions...institutions to which they might otherwise be likely to lose students. These colleges are more than willing to put scholarship dollars on the table to attract top students.

Thus, a good student admitted by such a college may be able to wind up with an improved financial aid package if he or she can produce award letters from other colleges which offer better packages, or if he or she can convince an admissions counselor, director, or dean that the original financial aid package would make it difficult (or impossible) for the student to attend the college.

When requesting more aid...need based or otherwise...remember that you are not buying a car. Ultimatums, rudeness, and aggressive behavior will surely be counter productive. And, you must remember that admissions and financial aid offers do not enjoy unlimited discretion. While I would not encourage anyone to try to save the last dollar on educational costs, there is no harm in requesting necessary help.

Article Source: http://mylilpeanut.com

Daniel Kane, a university Dean, has created and maintains websites on online college programs and online college degrees .
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