How Does Financial Aid Work?
It’s not very often that you get the opportunity to talk to a financial aid officer and even rarer that one will talk freely and openly about how the financial aid process works from their perspective. How does financial aid work? I was lucky enough to have the opportunity to find out! I had the pleasure to interview Heather Clifford, director of financial aid at Bennington College, a small liberal arts college in Bennington VT. A little background about the college first. It was chartered in 1932. Originally an all women’s college, it was the first to include the visual and performing arts in their curriculum. Another interesting fact about Bennington is that it is the only college to require that students spend a term, every year, at work in the world in their field of study. I like that concept.
Who Is The FAO?
One of the most important things I found out, after talking to Heather, are the traits of a good financial aid officer. The primary one is that they have a heart for students. Now this may not be the case at every college but it is the case at many. They are willing to do what they can to help deserving students attend their institution. Heather told me that a good financial aid officer is someone that is a good listener, someone who can look at what’s possible for a particular student given their history and anxieties about the future and someone who is able to look at the big picture. Being sensitive to a student while at the same time fiscally responsible to the college is key. This shed new light on who the financial aid officer is. It threw humanity into the mix. It made me realize that students aren’t dealing with unemotional robots or computers who are making decisions strictly on a few numbers spit out after completing the FAFSA. Many are caring individuals. This is important for you to know. Applying to colleges where financial aid officers display these characteristics will make this entire financial aid process a more pleasant experience and may actually improve your financial aid award.
The Financial Aid Award
I then followed up with questions related to how a financial aid award is structured and again was surprised by some of the detail. For Bennington, the starting point is the cost of attendance which include direct costs, those costs billed directly by the college such as tuition room board and mandatory fees, and indirect costs, those not billed by the college such as books, supplies, personal expenses and travel. Students are eligible to get financial aid up to their total cost of attendance. The next thing that is looked at is the student’s expected family contribution or EFC. Heather made it clear that colleges are not allowed to go beyond that EFC amount in need based aid so the EFC is subtracted from the cost of attendance. Then, at Bennington, merit aid is applied to the difference first. The first type of merit aid added is scholarships from the college. Then outside scholarships or resources are applied. What’s remaining is the student’s financial need. It’s at this point, according to Heather, that financial aid actually kicks in. Self help aid would be applied in the form of loans and work study. Then other need based aid is applied. That’s how it’s done at Bennington. My experience tells me that other colleges have variations of this. They will all start with cost of attendance and apply the EFC first. How they then apply aid and in what order may vary. This is another important thing for you to know at the colleges you are applying to. If you do not have financial need than it will not be an issue. If you do have a financial need and also have a student that will get merit aid then how it’s applied may make a big difference in your final award and the amount of out of pocket costs you have.
Appealing Your Award
We then discussed the appeal process and again each college is unique on how they consider a financial aid award appeal. You will have to find out what the appeal procedure is at the colleges you are applying to. At Bennington you will need to complete an appeals form. They also have a committee that meets weekly to consider appeals. The main point here is that you need to be honest and open about your resources. Be clear with the financial aid office. If you tell them you need a “little more”, your definition and theirs may be completely different. You may think $5,000 is a little more and they may be thinking a little more is $500. As an example you are better off letting them know that based on your resources you will need an extra $4,800. That would be specific and clear. Heather explained that they will then know what they are dealing with and can address your needs better.
During an appeal the financial aid office can exercise what is called “Professional Judgment” and Heather clarified what professional judgment is. This is a process where the financial aid office will consider items that are not included in the FAFSA. The FAFSA is cut and dry, numbers in and numbers out with no opportunity for explanation. The appeal process is also the opportunity to address items that would affect your EFC and professional judgment, if exercised, would alter your EFC. Understand that if a college is going to exercise professional judgment then they are actually “sticking their neck out” for the student and will need documentation from you to support any adjustments. Heather pointed out one common mistake on the FAFSA where appealing would be important. If you rolled over a 401k then it shows up on your tax return as a distribution and the FAFSA views it as untaxed income. This could dramatically increase your EFC and lower your financial need even though those funds are being rolled into an IRA and are not actually available for college. She did make it clear that all appeal points would be considered with the exception of a continuing student who has a disciplinary action. Also, consumer credit card debt or high mortgage payments would not be a strong appeal point either. Not all colleges will exercise professional judgment. If you have legitimate appeal points then it would be critical to make sure you are applying to colleges that will use professional judgment.
The Final Bit Of Advice
Heather’s advice is to do your own homework. Determine what it is you are looking for and what you want to get out of your college experience. Don’t over look the private colleges they just may be more affordable than the instate public schools. For the colleges you are looking at check to see how generous they are by researching what they are giving to incoming freshmen on average. Students must speak up and advocate for themselves, talk to your guidance counselors, reach out for resources and most importantly believe in yourself!
So if you have asked, “how does financial aid work?’ and now have a deeper understanding than thank Heather Clifford. I appreciate her time and willingness to explain how the financial aid process works. Her passion for her work and the students whose lives are impacted by her decisions were what impressed me most. She exemplified that core group of financial aid officers who are the real deal, flesh and blood caring individuals who truly desire to have a big impact on the lives of college students!