Congratulations! If you are reading this blog, very likely you have been accepted to at least one college you are interested in attending, and you have received a financial aid offer from them. The hard part of the college admissions journey is over. Now it’s time to evaluate and compare your offers, and eventually make a decision.
Reading financial aid offer letters can feel like deciphering spy letters with secret codes. Don’t be daunted. All you need to do is figure out how much you are expected to pay out of pocket. This is also called the “net price” or how much attending that school will cost you and your family. The net price is the total cost of attendance (tuition, room and board, books and fees) minus free money (scholarships, grants, any money you don’t have to pay back). Loans, whether government or private, are money you have to pay back, so they are part of the net price, aka, your out-of-pocket cost.
After you figure out the net price, how does it make you feel? Is the cost what you’d expected? Or does it catch you by surprise? How does the net price compare between different schools? How does it measure up to the pot of money your family had set aside for you?
You may be wondering, can I negotiate on my financial aid offers? How do I go about it to get a better offer while not making a bad impression with the college financial aid office?
When to negotiate financial aid offers?
You should negotiate financial aid offers if one of more of the following circumstances apply to you:
- Your out-of-pocket cost is substantially higher than the expected family contribution (“EFC” now called “student aid index” or “SAI”) according to FAFSA. School treats the FAFSA as a reference and not an absolute guide. Most schools use their own formula to calculate financial aid and the result may be different than the FAFSA estimate.
- You have better offers with less out-of-pocket cost from other schools of a similar caliber. As in any negotiation, having other offers always increases your leverage and gives the other party objective evidence on why they should give you more. In our experience, most colleges are willing to match the offer from another school which it considers an equal, and to outbid the offer from schools it considers a tier above.
- Your financial situation has changed since you applied for financial aid. You can always submit updated information to the college financial aid office so they can re-evaluate and update your offer. Similarly, if you or your parents don’t qualify for some of the loans listed on your offer letter, alert the financial aid office so the funding sources can be adjusted.
- Your out-of-pocket cost is simply unaffordable for you and your family. If you really want to go to a school and the financial aid offer is the only thing preventing you from doing so, you should appeal to the financial aid office and let them know a nudge on the number can turn your hesitation into a solid commitment.
How to negotiate financial aid offers?
Only negotiate financial aid offers with the schools that you truly want to attend. In other words, always consider the financial aid in the context of the school and how well it fits your overall aspirations and dreams. The best result of a financial aid negotiation is you getting a “full ride” to attend a school. Ask yourself, if I get a full scholarship without paying anything out of pocket, am I willing to decline all my other acceptances and attend this school? If the answer is no, then leave this school alone and focus your energy on negotiating with other schools on your list.
Be sincere and truthful about your situation. When you email or call the college financial aid office, explain clearly why you think you deserve more money. Bring objective as well as subjective factors to make your case. The financial aid office has a finite budget for each year, so their goal is to find the minimum amount for each student to say Yes and matriculate, but there’s always wiggle room for individual students.
Lastly, don’t be afraid to ask. You already got accepted! Now it’s your turn to pick so it’s reasonable to see what the best and final offer is from each college before you decide. The worst thing that could happen is they are not willing to make changes and your financial aid offer stays the same.
If you are still confused about how to read and evaluate financial aid offers or need guidance on negotiating, contact an educational advisor today. An educational advisor is an expert in the college admissions process with the goal to help you thrive. They can analyze your financial aid offers and give you professional guidance based on your individual situation, including how to act on those offers and talk to the financial aid office to maximize your potential award.