<p>Kate,
I am not a FA guru. There are people who are more knowledgeable about it on CC, but the threshold isn’t that high (some where around 100k in income). Depending on where you live, it could be middle class or upper class. Unless your parents have been saving since you were a baby, it would be very hard for many people to afford 60k/yr/student making less than 250k a year. 60k is after tax, so it is 100k in gross. There is a huge donut hole, families making between 100k and 250k that are not eligible for any need based FA at many private schools. Their options are going to their in state public or community college. So not every student gets need based FA, even when they need it.</p>
<p>There are many schools that give out merit based aid, but most of them are next tier down schools. They give merit aids to attract highly qualified students. If you don’t have good enough stats then you coud forget about it.</p>
<p>OP - instead of being miffed at your friend, you should start looking at what your family could afford, your own stats and start to figure out what schools you could be eligible to attend.</p>
<p>No one ever said EVERYBODY tells the truth here either, regarding finances. BUT when someone makes an outlandish claim, folks in the know are quick to point out that this is unlikely (like the person with millions of dollars in assets who claimed he had gotten need based aid…and no…he did not qualify for the simplified needs test).</p>
<p>Discussing college finances with family and friends is a hot potato. Folks tell you what they want to tell you. We knew someone who got a “$10,000 merit award” from Wellesley, and another person who claimed to have gotten a full merit ride to Penn. I actually have a neighbor who told me he falsified info on his FAFSA so that his kid would get more need based aid…seriously. </p>
<p>The OP and others need to know that THEY do not know the inner family finances of each family…and most families are not going to discuss this at the neighborhood party.</p>
<p>But “good enough stats” does not necessarily mean “stratospheric stats” or “Ivy-level stats.” There are many very good private schools that offer significant merit aid to B students with ACTs in the upper 20s.</p>
<p>What’s so strange about that? That he did it or that he told you he did it? I suspect it happens a lot - and that a lot of people get away with it, although I understand it’s getting harder to do.</p>
<p>AD. it’s strange that he did it AND told about it. And he was so proud of it. The rest of the neighbors just nodded. It just seemed an ODD thing to be bragging about at a neighborhood event.</p>
<p>Unless you check the financial aid box, some colleges will not send you much information on those government loans for which you and your family may be eligible. Also, you get so much stuff, that a page or brochure on those loans may go unnoticed unless you are looking for that information. So, it is possible that your friends did not notice any information about loan availability.</p>
<p>That said, a student HAS to fill out FAFSA to be eligible and does have to meet some eligibility requirement, such as citizenship, not be in certain default statuses with previous such loans, be registered for the draft if a male, and possibly some other vetting points. That qualifies a freshman for $5500 in Stafford loans regardless of need. Under certain need scenarios, the interest on that loan can be subsidized until after graduation. </p>
<p>The PLUS or Parent Direct Loan is a whole other situation. It’s for parents, but they do have to apply for it after FAFSA is filed and they do have to qualify credit wise. It’s not an automatic go, and the interest rate for that loan, plus the origination fee makes that pricey option. A better deal than many of the private school loans being advertised in terms of flexibility and other terms, but still not a real give away. And again, the credit report has to be good enough to qualify. </p>
<p>But do be aware, that one hears a lot of fish stories about financial aid and scholarships. I had a very good athlete in one son, and until I actually entered the world of college recruitment and what was available, I did not get a true picture of how things were and a lot of people told me some outright lies. They were bragging about getting sports scholarship offers at schools that did not, could not give them. </p>
<p>But all that is guaranteed to be out there in the form of pure money hand outs towards college costs is the PELL. If your family is very low income and gets a low EFC from FAFSA, the federal government will give you PELL money if you meet the qualifications. Anything else is up to the school and/or state. Even other federal money, such as SEOG is dependent on whether a school participates in the program and the funds are not guaranteed even if your EFC is zero. The same with the PERKINS loan. Unlike Staffords, it is not guaranteed. Nor is work study. A school gets so much in those funds and that’s it, and it’s rarely enough.</p>