A Tale of Two Colleges - FinAid Myth

Paying for College
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<p>Many colleges may tell you they give aid based on need, yet different schools work entirely differently, and the outcomes are so dramatically different that it bears telling. This is a tale of two colleges, MIT vs Cornell.</p>

<p>Two years ago, my husband and I both lost our jobs (we had less than $40K of income that year mostly from selling assets to cover tuition,) when our D was a sophomore at MIT. MIT made us go through an appeal process that took nearly all year, through 3 different committee reviews, only to deny us additional aid, with the promise that they would reconvene again after the following year’s tax forms were submitted. We were lucky to both get jobs that following year, and never did submit a new appeal application. Bottom line: in our darkest hour, when we absolutely needed help, MIT did not come to our aid, and instead strung us along until we would no longer qualify for aid.</p>

<p>At the beginning of 2009, I again lost my job. With the same exact financial aid information submitted to Cornell and MIT this year, and after going through an “appeal process”, we received $33,800 in grants, loan and work-study for our S from Cornell, $28,800 of which was in grants (having made adjustments for a $2,000 national merit scholarship…i.e. they would have given us more money.) MIT gave us $13,400 in total aid, all of which were loans, subject to “verification” with the following year’s tax filing. At the time of Cornell’s grant, they stipulated that regardless of any future change of circumstances, they would not be able to increase the financial aid any further. However, their grant was not subject to “verification” or retraction. Bottom line: Cornell did the best they could, based on our appeal. Cornell’s aid was not merit, but need-based.</p>

<p>Then my husband got laid off again recently (Oct 2009). Again we went through an appeal process. Again MIT came back with, “Well, it is too late in the year for this appeal to make any difference. We will wait for next year’s tax form to be filed.” </p>

<p>Despite the fact that we must make financial decisions NOW, the anxiety of uncertainty we face, and that our D’s academic career hangs in the balance, MIT has twice now failed to show up with any financial aid when we absolutely needed it. I have come to truly resent the automaton-like, calculating way in which MIT’s financial aid committee deals with people’s financial distress, especially in today’s dark economic environment. Furthermore, I believe MIT has performed the calculation of figuring out that, if you string people along, they may eventually get disgusted with the process, or end up finding jobs, so you never have to give out a dime.</p>

<p>Is there a moral to this tale? Well, our D received a full-ride offer from U of Michigan when she was applying to colleges. We tried hard to be “balanced” and let her make her own choice, with some mild pressure to not give up the UM offer easily. She ultimately chose MIT primarily for its culture. This culture has turned out to be very, very expensive indeed.</p>

<p>Please share your other horror stories, so those making decisions based on financial considerations can get to the truth of the process and the numbers.</p>

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<p>I assume Cornell has a larger endowment than MIT. There is only so much money to go around. It’s not necessarily that MIT does not want to help & Cornell does … it’s probably more that Cornell can pay more in need based aid than MIT.</p>

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<p>I don’t have a horror story, but after 9/11 when my husband received a layoff notice ( he was retained but had to take a downgrade in pay) Reed College adjusted the aid when we sent them a copy of his new paystub. ( we also had let them know when he initially recieved his pink slip)</p>

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<p>This is our first year to apply, so, no “horror story” here. I’m not sure I really “get” yours as being so horrific. We all know that these private institutions can do what they like with their funds, and that there is no guarantee our children are going to college. The first 12 years is guaranteed, but anything more is our own responsibility.</p>

<p>I’ll say that I’ve slaved to get out of poverty. Only just recently doing so. Still can’t afford to send my daughter to the schools where she would qualify to go (she’s not HYP material…the ones that do have some aid for middle income), but she’s close. But the NEXT of the top 20, most of whom say they’ll “meet need”…are still far above what I know we can actually afford. </p>

<p>I think we all expect so much. We want a loan for a home we can’t afford. We get it, default, and wonder why they companies won’t “work with us”. It’s the same with college. There are many brilliant kids in state institutions (college…not mental!) because, regardless of what “Top 20 U” says, the “aid” they offer is not really something they can actually AFFORD. If you/we/they take out loans and expect to pay them back after college…then we have to do that…pay them back.</p>

<p>It is a tragedy that you lost your job. But there are few among us who aren’t staring that possibility in the face. It can happen to any of us at any time (maybe not Bill Gates, but…you know…everyone else). </p>

<p>A college education requires thought and planning. The more expensive it is…the more of both you need.</p>

<p>If, like me, you couldn’t save beforehand, then you need to think harder about the future. Will you spend everything you have now, plus your future retirement, on your child’s education? Do you have more kids? Is your house paid off? Do your kids want graduate school? Will they help with that? Can you live on soup every day? What if your property taxes skyrocket, or you break a dental crown, or your car breaks down, or your basement floods? Prepare for the worst, hope for the best. These colleges aren’t guaranteeing us that they’ll cough up whatever we think we need, whenever we need it, especially if our situation changes. </p>

<p>Times are tough, decisions are tough.</p>

<p>My D did choose to apply to some Top 25 colleges. Because, who knows? We could win the lottery? We could get child support started again after 15 years? We could be remembered in a will? But…unless something big happens, this very very smart child will be at our local University, because…though she REALLY wants “more” (and I want more for her too…this hurts me SO much!)…the local University who is offering somewhere between 1/2 COA and a free ride (scholarships pending)…is the smart money. </p>

<p>This way, we’re not OVERLY stretched, as OP has become. We can put some money away. There is a house to pay for, cars, health insurance and medical bills, emergencies, a wedding someday, and…most importantly RETIREMENT and GRAD SCHOOL. I’ve been very sick, and have no clue if it might return. It’s just not smart to go that deeply into debt UNLESS you have a way out if a disaster happens. Our children, at age 16-18…are NOT equipped to make these financial decisions. It’s our job to teach them fiscal responsibility. For mine…I know that I told her that THIS is how much I have right now. That may change. If you start at an expensive school you might have to come home. If you start at home MAYBE you could transfer later OR have this money for grad school IF I still have it then (other emergencies?). Either way…when it’s gone it’s gone and my earning potential is limited at my age, let alone in this economy. She is wisely understanding she can either use it for PART of a really great undergrad degree…OR get a free undergrad and use it for virtually EVERYTHING else in her life (including summer sessions at her preferred college, etc. ).</p>

<p>Good luck.</p>

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<p>

MIT’s endowment is almost twice as large as Cornell’s - and Cornell has twice as many students.</p>

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<p>I am not sure if they are need blind ( Reed isn’t) but my D received more aid through grants at Reed, than what we had heard from friends who had applied.
Still match 100% but it sure is a lot nicer when the bulk is a grant instead of a loan.</p>

<p>Some schools are just PITA in terms of need- I know a young woman who had received generous scholarships to NYU, which her single parent a teacher much appreciated.
Unfortunately when her mother then died of cancer a year or so later- NYU did not make it possible for her to graduate .</p>

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<p>Does the op have one child at mit and one at cornell? Am I missing something? How were they able to get an increase from cornell unless they had a child there?</p>

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<p>A couple of things to remember…loss of income is considered a “special circumstance” and is reviewed on a case by case at every college. The SCHOOL determines if they will review the situation and if there will be an adjustment to aid. There is nothing unusual about the OP’s story. It was hard for them…but that is the way it is. MIT makes the decision about special circumstances appeals.</p>

<p>Another thing…many schools require a period of time before they will review finaid when a person loses their job. This is because sometimes the person GETS a new job in a period of time (as the OP did). </p>

<p>And…the OP doesn’t mention whether a severence package was part of any of the job losses. If so, this is still viewed as income.</p>

<p>And…remember that financial aid is based on the previous year’s earnings for EVERYONE…so if you lose your job during a year, a school could say “next year” and be well within their rights to do so. If you get a job during that year, your income for that year would reflect that.</p>

<p>Colleges assume that expenses will be paid for by PAST income in addition to current income (salary) and future income (loans).</p>

<p>Re: the difference between Cornell and MIT…each school awarding institutional monies can do so in any way they choose. It is THEIR money. That is why there is sometimes a vast difference in the amount of need based aid awarded by one school vs. another. </p>

<p>From reading the OPs posts…it sounds like they have a S at Cornell and D is still at MIT. When you have two kids in college at the same time (is that correct, OP?), your contributions to each school are typically halved or so (not exactly half as student assets are different…and the formulas to compute institutional aid vary from school to school). So…just having two kiddos in school would likely net you an increased award for both kids at schools that meet full need. Did you fill out a new Profile and FAFSA for MIT for this year (assuming DD is still a student there)?</p>

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<p>Yes D at MIT and then S at Cornell as freshman this year.</p>

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<p>To reply to several of the posts:</p>

<ol>
<li>Severance but very modest amount. All have been disclosed of course.</li>
<li>MIT’s offer at the beginning of this academic year did not “halve” the expected parent contribution.</li>
<li>Yes a new FAFSA was submitted showing all the facts. MIT not only had all the facts, but we told them of Cornell’s generous treatment and asked why theirs offer was so inconsistent with the other institution. Their reply was that they thought Cornell offered merit-based scholarships. Cornell’s merit scholarship offered to my S was $600/semester. They had no reply to this.</li>
<li>When institutions advertise “we meet full need”, and then behave in such dramatically different manner, that is what raises questions. There is a huge difference between institutions, and the fact that MIT is well endowed does not seem to correlate with their stingy treatment of need-based students, whatever their advertising says.</li>
</ol>

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<p>I feel for you as we recently sent an appeal to D’s school and have not yet heard back.</p>

<p>BUT…</p>

<p>Congrats on getting a daughter into MIT and a son into Cornell!!! That is an amazing achievement!</p>

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<p>There is a fair amount of complexity to the college games and I certainly learned a lot about the process and how things worked from these forums. We generally have a vague idea as to how it works but the actual details can be surprising when we have to deal with them.</p>

<p>One thing about endowments: this year is also about the liquidity of endowments - not just their size.</p>