| What is frustrating for parents and students alike is that it is so hard to get clarity about FA packages & terms for the first year alone, and nearly impossible to get a feel for what happens as assets get drawn down and/or a 2nd child starts college in another 2 years. Parents and students are forced to take a worst case view regarding FA and loans, all the while hoping for the best.
I don't consider loans to be FA any more that I consider my mortgage to be FA. Interest deferred loans have some FA value, but not a lot in the grand scheme of things. When a school provides no need-based grant and are content to let the gap be filled with $10K in student loans, I really don't know at what point need-based grants would kick in. I have to assume that my kid will graduate with at least $40K in loans, but more probably $45K, and perhaps even more.
As far as truth in FinAid is concerned, I would like to see schools state what their loan limits are. IOW, how much loan do they think is reasonable to graduate with after 4 years. This doesn't need to be stated in absolute dollars, but could be relative, such as one semester's tuition per year or 1/3 COA. Colleges have shown that they are able to work together within agreed upon standards. The April notification deadline and May enrollment deadline are proof. They ought to be able to adopt uniform standards regarding the content and terms of FA packages for the first year AND BEYOND, so students can make intelligent decisions regarding where they choose to enroll and how they can go about paying for it. |