Students want to be confident that their choice of a college from those that have accepted them is right. For many, this depends heavily on the net cost of each college after financial aid is taken into account. Before choosing, many students want to be sure that they haven’t left any money on the table in potential financial aid from colleges.
When students are accepted by a college, they receive an Award Letter that details the financial aid available to them from Federal, state, and institutional sources. Families should be aware that the initial offer from a college isn’t necessarily the school’s best and final offer. The financial aid offered may not be sufficient even when other available funds are added. Some admittees want to find out if the college’s offer might be improved so that they can afford it. Other admittees may simply want to know if they have received the school’s best offer. In either case, a student has the right to appeal to the college.
Except in the case of a few highly selective colleges, the appeals process is a negotiation. It’s recommended that students not use the term “negotiation” in communications with a college. They don’t like to think of it that way. Students should always use the terms appeal or a request for reconsideration. But recognizing that it is, in fact, a negotiation enables students to handle the process with a better understanding of exactly what is going on. Students have more leverage than they realize.
The first step is research. Students should search the college’s website for information on appeals. The eligibility requirements for an appeal will be described on the website. Students should then call the college’s financial aid office to discuss a needs-based appeal. Financial aid officers may provide tips on how to proceed that are not mentioned on the web site. Students shouldn’t be afraid to ask what their chances are. College financial aid offices only handle need-based aid, so the admissions office should also be contacted regarding merit-based (a.k.a. tuition discount) appeals.
Comparing Offers
Why do so few students file financial aid appeals? It’s because students tend to react to an acceptance with such unalloyed gratitude that they’re reluctant to appeal. This is the reaction that colleges prefer. Yet the worst that can happen to a student who appeals a financial aid offer, if it’s done properly, is that the college declines to improve it. First, however, students should adopt a fair method to compare Award Letters because there is no standard way for a college to present financial aid information.
An initial step is to determine which financial aid offers are renewable. Renewable aid will be available for all four undergraduate years, usually conditioned on a metric such as GPA. Aid that’s available for all four years is better than aid that’s available only for freshman year. A college that offers, say, $5,000 per year for four years is a better deal than a school that offers $10,000 for freshman year alone.
Pre-appeals research involves comparing financial aid offers from two perspectives:
Same Student – Different Colleges: This refers to the need of students to compare aid offers that they received from different colleges. As noted, this is more complicated than it should be because colleges don’t use a common format or terminology in their Award Letters. Students need to be sure that they are comparing awards on an apples-to-apples basis.
Different Students – Same College: This is a comparison of the need-based and merit-based offers received by a student to the offers received by other students who were accepted by the same college and have similar FAFSA profiles. There are online tools with free versions that assist students in this task.
How can a student find the information to make these two comparisons? Useful data about colleges is available through a number of popular publications, including Petersen’s, U.S. News & World Report, Washington Monthly, Forbes, Kiplinger’s, Princeton Review, Money and others that describe and rank colleges. They share the same basic source of information — the Common Data Set (CDS). This database is the product of a collaboration by colleges and publishers to promote the accuracy of college-related information. A college’s CDS file has records about admissions, rates of graduation, demographics, need- and merit-based financial aid, academics, campus life, and many other variables. It can be accessed directly by students by entering “CDS name-of-college” into an Internet search engine.
What Belongs in a Financial Aid Appeal Letter
Most colleges require that an appeal provide justification in the form of extenuating circumstances. Students may be required to show proof of such circumstances. Below are a few examples of extenuating circumstances, assumed to have occurred since the FAFSA was submitted, that may justify a financial aid increase:
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- The student’s parent or guardian gave birth to a child or took on a new dependent.
- A parent experienced a loss of employment or other significant loss of income.
- The student’s marital or dependency status changed.
- The student got divorced or separated.
- The death of a student’s parent, guardian, or other person of financial impact.
- The student recently qualified for a dependency override.
- Child support or spousal support benefits have come to an end.
- The student believes that FAFSA didn’t capture specifics of the financial situation.
- A natural disaster occurred causing the loss of a family home, business, or property.
- The student had to take on new or unexpected medical bills or dental expenses.
- The student has high elder care or disabled childcare expenses.
- Textbooks or supplies cost far more than the allowance in the Cost of Attendance.
- Any other significant financial change that occurred after FAFSA submission.
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Some colleges will consider an appeal based on a student’s a statement that they are seeking to match a better aid offer from another college. In such cases, the college may want to be assured that the student will enroll in their school if they match the other offer.
May 1 is usually the deadline for choosing a college for first-year admittees. There is no reason to commit before this deadline. Students should be confident that they have a complete picture of all of their financial aid offers before they make a deposit to a school. Once the college has the deposit, the student no longer has leverage.
Colleges’ financial aid and admissions offices are typically swamped with decisions and appeals around May 1. Students who seek more aid should not procrastinate until just before the deadline — especially for merit-based aid. They should appeal quickly.
Colleges understand that bad things can happen, and sometimes financial circumstances change for the worse after a student has enrolled at their school. Colleges don’t necessarily want families to have to wait for the next academic year’s financial aid cycle to address their dilemma. A college’s financial aid office may, at any time of year, consider a student’s appeal based on new circumstances.
Tips for Writing a Financial Aid Appeal Letter
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- It should be a typed letter and sent through the mail to the college.
- The same letter should be sent to the Admissions and the Financial Aid Offices.
- Express gratitude for having been accepted.
- State clearly that the letter is a request for additional financial aid.
- Provide a brief bio and show that the school and the student are a great fit.
- Provide concise details regarding extenuating circumstances. Provide actual numbers so that they can do the math and see that there isn’t enough money.
- Include details about being a hardworking student who has succeeded in the past.
- Keep it short and to the point. Sign off respectfully. Sign by hand.
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Sample of an Appeals Letter
To the Financial Aid and Admissions Offices at University of Michigan:
My name is ____________ and I am a senior currently attending St. Dominic’s Academy in Detroit. First, I would like to say that I am honored to have been admitted to your distinguished institution. Michigan is my top choice and I would enroll immediately if I could. Unfortunately, I cannot afford to do so.
I’m writing to respectfully request an adjustment of my financial aid award.
Here is an overview of my financial situation. Currently, my father works as a custodian for the National Bank of Detroit. He is the only source of income for my family of four because my mother lost her job in January and has been unable to find another one. The income my father earns monthly barely pays the bills.
Family financial summary: :
Father’s average monthly gross pay: $xxxx
Father’s average monthly net pay: $xxxx
Household monthly expenses:
Rent: $xxx
Legal Services: $xxx
Car payment: $xxx
Other: $xxx
My father’s average monthly income is approximate because his overtime and neighborhood handyman jobs are unpredictable. It is estimated to be an average of $xxxx (see attached pay stubs). When household expenses such as rent, car payment, legal services, and gas and electricity are added together, their total cost is $xxxx. Other payments like the phone bill and groceries add to that total.
My family is on such a tight budget that we cannot afford to pay for my education, even if I work a part-time job in college. I have worked hard and was recently awarded a National Merit Scholarship (alternate) award. My goals and my aspiration of becoming a doctor have sustained me through adversity.
I appreciate your time in reconsidering my financial aid award. I look forward to being a freshman at Michigan in the fall..
Respectfully,
(signed by hand)
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