Stanford Financial Aid: Need-aware?

JHS
Wed, 17 Dec 2008 09:11:13 +0000

You need to distinguish between “need-blind” admissions, a commitment to meet 100% of need in financial aid, and then a commitment to meet need with or without loans. The vast majority of U.S. colleges – far more than 40 – are need-blind when it comes to admissions, in the sense that financial status isn’t considered when deciding whom to admit. That’s possible because only a small number of colleges commit to meet 100% of need for accepted students. I don’t know where fiona got her 40 number, but I suspect it’s the number of colleges that are both need-blind and commit to meet 100% of need for domestic students. And, I believe, the eight colleges named by fiona are those that are both need-blind and committed to meet 100% of need for foreign students. (A few years ago, that number was 0, by the way.)

There is also a relatively small number of colleges that commit to meet 100% of need for domestic students, but are need-aware in admissions, i.e., they won’t admit a student if they aren’t prepared to fund his or her need. This doesn’t mean that students who need financial aid are not admitted, but it does mean that they are competing against each other for a limited budget, and that a student with a high need level had better have a really compelling application.

Most of the colleges that commit to meet 100% of need for domestic students also commit to meet 100% of need for foreign students, too, but are need-aware in admissions for foreign students, so that they can control their aid budget for those students. This happens because foreign students can’t take advantage of Federal student aid programs, so any aid a foreign student receives has to be funded by the college itself.

The rest of the admissions-need-blind colleges don’t promise to meet 100% of need with aid. Basically, they admit lots of students, and then say (nicely, with lots of help), “You figure out how to pay for it, here’s what we’ll contribute, but after that you’re on your own.”

Finally, a handful of elite colleges have started committing to eliminate loans as part of their financial aid packages for students from low- and moderate-income families. This is an extraordinary move, because loans (often government-funded, not funded by the college) are usually the first component of any financial aid package, and grants have to be funded by the college itself. The difference between graduating from college with $100,000 in debt and graduating with $0 in debt makes an enormous difference to students. I believe most of the colleges doing this also do it for their foreign students, but some may not.