New question about financial aid at Georgetown

<p>We are wondering if anyone here has experience with Georgetown's financial aid office for an upper-middle class family. D1 is a rising high school senior, and we are trying to decide if it would be worth her time to apply to Georgetown. Our EFC is pretty high - about $50,000 and it appears that we would need to take out loans in order to cover an undergraduate education at Georgetown since we will not qualify for federal grants.</p>

<p>We have a 529, but the amount in it will barely cover one year of tuition at Georgetown. :(</p>

<p>Many thanks!</p>

<p>Even with an EFC around the same amount, students can get widely varying FA package offers. I had trouble wrapping my head around this at first because I thought that everyone with the same EFC received the same FA package at the same institution (but not necessarily so). Because Georgetown requires both the FAFSA (Federal Model) and CSS (Institutional Model), the school will take a look at both and then determine what they deem to be a fair FA package for your family (based on your tax returns, FAFSA & CSS). </p>

<p>Sybbi719 did an excellent job at explaining and breaking this down (better than I ever could…) hahaa It is long but informative. Good Luck! </p>

<p>Determination of Need</p>

<p>Primary responsibility for meeting college costs rests with students and their parents, to the extent that they are able to pay. The difference between standard costs of education and the calculated family contribution is “demonstrated need.” </p>

<p>Two distinct formulas assess information reported in the aid application process. The traditional institutional methodology (IM), developed by the College Board and refined annually by economists and aid administrators, determines the expected family share of costs. IM is the dominant standard among selective national colleges. Most schools that use an institutional methodology to disburse their own funds use either the CSS profile or their own FA form.</p>

<p>The federal methodology (FM) through the filing of determines eligibility for federal aid. All schools require students who are U.S. citizens or permanent residents to at minimum file the FAFSA if they are requesting FA. The only thing the FAFSA does is determine one's ability for federal aid, (pell grants, seog, stafford and perkins loans).</p>

<p>Differences between the IM and FM models include:</p>

<p>IM collects information on estimated academic year family income, medical expenses, elementary and secondary school tuition and unusual circumstances. FM omits these questions.</p>

<p>IM considers a fuller range of family asset information, while FM ignores assets of siblings, all assets of certain families with less than $50,000 of income, and both home and family farm equity.</p>

<p>FM defines income as the “adjusted gross income” on federal tax returns, plus various categories of untaxed income. IM includes in total income any paper depreciation, business, rental or capital losses which artificially reduce adjusted gross income.</p>

<p>FM does not assume a minimum student contribution to education; IM expects the student, as primary beneficiary of the education, to devote some time each year to earning money to pay for education.</p>

<p>FM ignores the noncustodial parent in cases of divorce or separation; IM expects parents to help pay for education, regardless of current marital status.</p>

<p>FM and IM apply different percentages to adjust the parental contribution when multiple siblings are simultaneously enrolled in college, and IM considers only siblings enrolled in undergraduate programs.</p>

<p>The IM expected family share represents a best estimate of a family’s capacity (relative to other families) to absorb, over time, the costs of education. It is not an assessment of cash on hand, a value judgment about how much a family should be able to use current income, or a measure of liquidity. The final determinations of demonstrated need and awards rest with the University and are based upon a uniform and consistent treatment of family circumstances.</p>

<p>Except in the most extraordinary circumstances, Colleges classifies incoming students as dependent upon parents for institutional aid purposes, even though some students may meet the federal definition of “independence.”</p>

<p>Students enrolling as dependent students are considered dependent throughout their undergraduate years when need for institutional scholarships is determined.</p>

<p>For institutional aid purposes a student may not “declare” independence due to attainment of legal age, internal family arrangements, marriage or family disagreements.</p>