<p>I might be wrong, but it was my understanding that Reed only includes subsidized federal loans for dependent students in the financial aid award, which totals $16,000 over four years ($2500 freshman year, $3500 sophomore, $4500 junior, $5500 senior). Even independent students who qualify for larger loan amounts are not expected to take them out as a part of their financial aid package. Qualifying students can also take out unsubsidized federal loans if they choose, but it is not calculated into the financial aid package.</p>
<p>So to my understanding, Parent PLUS or private loans are not an expectation that the financial aid office has of families, and it seems like they would only be necessary if the expected family contribution (which is calculated through FAFSA and PROFILE) was more than the family could actually afford. (For instance, for your freshman year, Reed determines your family can afford $15,000 per year in out-of-pocket tuition and awards you a financial aid package for $35,000 which includes $2500 of federal subsidized loans, maybe some work-study money, and the rest as federal or Reed grants. Your parents say they can only afford $10,000 per year so they make up the difference with outside loans).</p>
<p>I guess the idea with need-based aid and all these methodologies for figuring that out is that there wouldn’t BE a difference between net cost and what you could afford. But of course families don’t always agree that the EFC is an accurate reflection of what they can pay. </p>
<p>I think the collegeboard EFC calculators (using FAFSA and institutional methodology) will get you in the ballpark of what Reed will expect your family’s contribution to be, but of course you won’t know for certain until you apply, get in, and see what your financial aid award is. You should let FA know if there are any special circumstances that would lower the amount your parents could reasonably contribute towards your education.</p>