How Do Colleges Use Preferential Financial Aid Packaging in Admissions?
Last Updated on December 8, 2022 by Jill Schwitzgebel
Most parents of college-bound students have at least some idea what financial aid is. But, many of those same parents are not aware that preferential financial aid packaging also exists. And, it’s important to understand when your teen is applying to college, because it may have an impact on how much aid your student will be offered. Basically, colleges will provide their best financial aid to the students that they most want to accept their offer of admission.
The best financial aid packages will contain less aid in the form of loans or work study and more grants or scholarships that don’t need to be paid back. They will meet your family’s financial need in full. Less than stellar financial aid packages are sadly common, and may even leave your family with a gap, where the cost you’re left with is more than the FAFSA says you can afford to pay.
Why?
Preferential financial aid is just another way for colleges to recruit students. It’s a way to entice the specific students that the college would most like to be part of their incoming class, and is especially common among private colleges. If a college really wants the student, they will find a way to give that student a financial incentive.
The high sticker prices of colleges today mean that financial considerations will affect just about every student. If cost also matters to your family, there are some ways that your student can best position themselves to be the recipient of the best financial aid awards.
Who?
The very best way to receive the best financial aid is to be in the top 25% of applicants academically. This is really the same strategy as when looking for merit aid. However, unlike academic merit aid (which is sometimes guaranteed based on GPA/test scores) it’s also more likely that your student will be the recipient of a generous aid package if they have other characteristics that the college would like to have as part of their class. Maybe the college needs more trumpet players for their band or maybe they are looking for someone with significant community service experience to round out the incoming class.
At some of the most highly selective colleges, applicants are all tightly clustered academically. So, there is a lot more uncertainty about who may be the beneficiary of an especially advantageous aid package. (Some of these selective schools do use a very fair formula based on family income, which will provide a nice financial aid package.) But, this is all the more reason for students to be certain that their application really highlights what makes them unique. AND, it’s also more reason for those students to apply to other colleges where they would be considered among the top quartile of applicants. When it’s decision time, it’s important to have not only an acceptance, but an appealing financial aid package, making college affordable.
Impact
Obviously, if your senior gets into their favorite college, but the financial aid package is not what you had hoped or even anticipated, it’s a huge disappointment. It can mean making some tough decisions. You always have the option to write a financial aid appeal letter if you feel that there are financial circumstances that the college simply did not take into account. And remember, if your student had other solid college options on their application list, there is nothing wrong with choosing to attend the college that really showed your student some love, in the form of financial rewards!
