Post-high school, choosing a college or university is one of the most challenging decisions a student has to make. With so many variables and factors weighing on this decision, the choice can feel really challenging and nearly impossible to make. The factor that often weighs the heaviest is cost, especially the cost of private, prestigious universities.
When you begin to consider your educational options and determine which college is best for you, you must ask yourself critical financial questions like how much debt you will acquire, what type of scholarships and financial aid are available, etc. It also might be vital to determine if the colleges on your list are need-blind or need-aware.
Understanding Need-Blind and Need-Aware Admissions Policies
Need-Blind (Full-Need) Admissions Policy
Need-Blind policy means that when reviewing college applications, the university does not consider the applicant's financial situation when making their admissions decision. Financial aid from need-blind schools typically goes to students who prove financial need. Remember that not all need-blind schools pay 100% of a student's tuition, and some offer only loans to supplement tuition and college fees. Only five schools in the US are need-blind for international students. These include Harvard, Yale, Princeton, Amherst, and MIT.
Advantages of Need-Blind Colleges
Need-blind colleges have advantages for students who need financial aid for college. They offer opportunities for higher education at a fraction, and in some cases, none of the cost. These colleges tend to be more diverse, giving all students equal opportunities in and outside the classroom despite their socioeconomic backgrounds. Students accepted to a need-blind college know their acceptance was due to their merit and academics, not their family's financial status.
Disadvantages of Need-Blind Colleges
Not all need-blind colleges are wealthy enough to meet 100% of each student's needs. Some can offer generous aid packages, and others supplement their financial aid with loans, on-campus job options, and scholarships. Unfortunately, students who cannot afford to pay the difference in cost typically have to turn down the admission offer.
Need-Blind Financial Aid Policies
When students apply to college, they fill out the FAFSA or the CSS application to document their financial situation and apply for scholarships. These documents require the students to calculate their Effective Family Contribution to estimate how much money their family can afford to pay per year for the university.
Need-blind colleges only look at these papers after the student's acceptance into their college. Then they create a financial aid package for the student to consider. The EFC calculator might not always be perfect and not consider some unique circumstances that might prevent students from paying the total amount from their EFC. While a student may appeal to the school for more aid, there's no obligation to provide additional funds.
Need-Aware (Need-Sensitive) Admissions Policy
Need-Aware policy means that the university makes most of its decisions without considering an applicant's financial needs. Still, it reserves a few spots for students who can pay the total cost of the college's tuition and expenses without needing loans, grants, or scholarships.
Many colleges do not like to advertise they are need-aware because it implies they may not admit a student because of their financial needs. The biggest challenge students with financial needs face when applying to these colleges is not getting into them based on their needs. But, if these students gain admission to these colleges, many offer generous financial aid packages. Here are some universities with need-aware admissions policies:
Auburn University
Bates College
Bryn Mawr College
Carleton College
Clemson University
Colgate University
Loyola Marymount University
Northeastern University
Smith College
Tufts University
Washington University in St. Louis
Wesleyan University
Advantages of Need-Aware Colleges
While need-aware schools look at your academics and financial needs when evaluating your application, you'll likely get a great financial aid package from the school if they admit you and you are lower-income. These schools often have the money to fill the gap between what you can pay and tuition costs.
Disadvantages of Need-Aware Colleges
The most significant disadvantage to applying to a need-aware school is that your financial situation might affect admission. If the school cannot support you financially, they may not admit you.
Need-Aware Financial Aid Policies
Need-aware is similar to need-blind in their documentation process, where students must fill out either the CSS or FAFSA. Admissions officers consider these documents in their application evaluations, weighing their desire for the student against the financial responsibility to the student.
Many schools that fall into the need-aware category offer merit-based scholarships to counter the cost to the student. Instead of emphasizing their financial situation, they use academics to determine who receives scholarships.
Note: Some colleges do not accept the CSS profile or FAFSA Application and might require you to apply for their financial aid programs through their own portals or website. For example – Princeton University has its own financial aid application called Princeton Financial Aid Application or PFAA. These university-specific applications might have different deadlines, requirements, and eligibility criteria, so you must check on the university websites before you apply for financial aid.
How Does Need-Aware Admission Differ for Domestic vs. International Students?
Many schools that are need-blind for domestic students are need-aware for international students. It's much more common for financial need to play a larger role in international students' admissions decisions than domestic students. Therefore, your financial situation can significantly impact your application if you're an international student.
For example – Dartmouth states that financial need is used as part of the admission criteria for international students, but it is need-blind for domestic students.
Brown University is need-blind for domestic students but need-aware for international students. In Brown's case, in 2018, over 40% of their incoming class received financial aid, but only 15% of international students received financial aid. However, Brown is quick to note that, for international students, financial need is not a primary admissions factor and, in fact, it's not considered at all when applications are first reviewed. Dean of Admission Logan Powell stated that "The first principle of our admission process is that we always admit the strongest applicants regardless of need," he said. "It's only at the very end of the process, after we have selected the groups of (potential) students … that we have a better sense of what their financial need is."
What is Demonstrated Financial Need?
Some colleges claim to meet 100% of a student's demonstrated financial need, but what exactly does that mean?
Demonstrated Financial Need is the difference between the Cost of Attendance (COA) and your Expected Family Contribution (EFC). This is the amount of financial aid you're eligible to receive to pay for college. Remember that your demonstrated financial need will differ from college to college since the COA is usually different for every school.
Only a few colleges meet 100% of financial needs without loans. These colleges include Bowdoin College, Brown University, Davidson College, Harvard University, and Princeton University. Most colleges will not meet the demonstrated need amount — a practice known as "gapping."
Net Price Calculator
Most universities have Net Price Calculators on their websites to allow students to estimate the amount of financial aid they would be eligible for. The websites ask you to fill in details about your parent's incomes and assets and give you a breakdown of costs and the aid you could be eligible for.
Example – Harvard University has its own Net Price Calculator that asks for the following information before assessing the Estimated Financial Aid Package:
Family Information – They seek information regarding your residence, the number of people in your family, and the number of college-going children to assess financial circumstances.
Income Information – This section seeks information about different income sources and gross wages.
Asset Information – This section includes information about your parents' assets like cash, business equity, real estate equity, etc.
Net Price Estimate – Based on the information you have entered above, the website's algorithm gives you the Estimated Financial Aid Package you're eligible for.
Apart from University's specific Net Price Calculators, you can also assess the same on the official College Board Website: https://bigfuture.collegeboard.org/pay-for-college/calculate-your-cost
The Headmaster Tip
Look at the statistics!
Before applying to a university, look at their past records and how they have allocated their financial aid. These stats could give you a fair idea about the trend the university follows and your chances of getting the aid.
Demonstrate Need
Many colleges have additional or supplemental essays, which could make a good opportunity for students to demonstrate needs. We highly recommend using these essays to your advantage and demonstrating your need.
Reach out
Apart from financial aid, there might be other options students can explore, like scholarships. Skim through the website and look at the scholarship alternatives you might have. If you cannot find them on the university website, reach out to the Admissions offices and ask for the resources and alternatives.
Negotiate
If financial aid has already been allotted to you and you're not satisfied with the amount you received, you can try to go back and negotiate on the amount. Even if it might not be in your favor always, it could still be worth a try.
Apply
Even if you feel you might not get the financial aid, apply! Most often, students do not apply for financial aid because they don't feel they would qualify for it. In addition, admissions is a complex and dynamic process with no fixed variables, which makes it difficult to assess your chances.
If you’re looking to apply to international universities or exploring overseas higher education options, The Headmaster Consulting can help you narrow your selection while keeping track of your requirements for your financial needs while tracking overseas education options. If you want personalized roadmaps to your dream universities, get in touch with our consultants to help you build your profile and applications.
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