As the 2024-2025 academic year approaches, students and families navigating the financial aid process might encounter surprising shifts in their aid packages. The updated FAFSA application, while streamlined, has introduced changes — most notably the elimination of the sibling discount which previously benefited families with multiple children in college simultaneously.
If you receive a financial aid offer and it’s not quite you expected, you don’t need to accept it. You can reach out to your financial aid office and request a financial aid appeal, or you can opt to negotiate your financial aid offer. However, a financial aid appeal is a bit different than a financial aid negotiation.
The Difference Between a Financial Aid Appeal and a Financial Aid Negotiation?
A financial aid appeal is specifically asking for a change in your student aid index (SAI) or your cost of attendance (COA) in order to qualify for additional federal student aid. If those changes are granted, you may be awarded more federal aid, like a Federal Pell Grant or federal student loan—but you may also see an increase in financial aid from other sources like your school. However, there are very specific reasons you can appeal, such as, consideration of multiple children in your household in school, a change in your family income. Financial aid appeals are part of the federal student aid programs, and while your school will ultimately have full discretion in granting or rejecting your appeal, there are some general guidelines they must follow.
When you are asking to negotiate your financial aid, you are looking for ways to increase the financial aid offered by your school. This typically will be a negotiation to increase your school’s financial aid offerings which you will typically see in the form of grants and scholarships. When it comes to a financial aid negotiation, this will be at the discretion of your school and be based on their policies.
And just to be clear and say it one more time: both appeals and negotiations will be the decision of your school.
Maximizing Your Financial Aid Through a Financial Aid Appeal
If you schedule a time to meet with your financial aid office, be prepared to provide documentation and a detailed letter explaining your situation. Remember, it's your right to advocate for yourself and ensure that your financial aid offer accurately reflects your current financial context. With careful preparation, a respectful appeal could result in a more favorable aid package that makes higher education more affordable and within reach.
Colleges have a certain level of discretion to re-evaluate financial aid packages when students present valid circumstances that affect their financial situation. A dependency override may be used where students are unable to provide parental information due to an unusual circumstance . If granted a dependency override, a dependent undergraduate student may be considered an independent student which may increase their eligibility for certain types of financial aid.
Additionally, the use of Professional Judgment by financial aid administrators can play a crucial role. They have the authority to adjust the data elements on the FAFSA or to adjust the cost of attendance in light of special circumstances that you document, directly impacting the calculation of your financial need.
Furthermore, schools themselves often have separate funds from which they can grant more aid to students in need. This institutional financial aid is based on the school's budget and policies but can significantly supplement federal and state aid. It's in these ways that colleges can go above and beyond the standard aid programs to help ensure students are able to afford their education.
Why Consider a Financial Aid Appeal
- Removal of the Sibling Discount: The 2024-2025 FAFSA removes the sibling discount which would consider multiple children in college at least half-time at the same time. The SAI calculation is different than the calculation for the EFC, and while the impact may not be felt by all families, some families may find the impact challenging to navigate. The suggestion here would be to have each child appeal the situation to their school—they may be able to adjust on a case-by-case basis. And if one school opts to grant a professional judgement and make changes to financial aid eligibility, a sibling may attend a school where the appeal is denied.
- Income Changes: If your family's financial situation has changed significantly since submitting the FAFSA — for example, due to a job loss or unexpected medical expenses — it's important to communicate these changes to your financial aid office. Remember, the 2024-2025 FAFSA reports income information from 2022. If someone in the household has lost their job, it’s best to present this information in a financial aid appeal.
- Special Circumstances: There may be special circumstances, not reflected on your FAFSA, that affect your ability to pay for college. This could include high unreimbursed medical bills or a parent's recent unemployment.
- Unusual Expenses: Families with unusual expenses not accounted for on the FAFSA can appeal based on these financial burdens.
Financial Aid Negotiations
You may be considering multiple schools, and while one school is a better financial fit another school is a better academic fit. If you have a preferred school that doesn’t quite meet your financial aid needs, you can always ask for additional financial aid to be provided. However, just asking for money because you need more money isn’t always the best way to handle it. You want to provide a detailed case about your situation.
A financial aid negotiation occurs when you don’t necessarily qualify for a financial aid appeal. Your information was presented correctly, and you don’t necessarily have outstanding bills or other financial concerns. But you want to see if you can reduce the cost of college and…it doesn’t hurt to ask. But you are asking your financial aid office to consider helping you, so it’s best that you are well-prepared for your discussion.
Leveraging Unused Scholarship Funds
In the realm of college financing, staying proactive could uncover additional sources of aid—specifically, leftover scholarship funds. As the academic year progresses, some scholarships may go unclaimed or previous awardees might forfeit their awards. This means schools might have residual funds which they can redirect to other deserving students—maybe you. But keep in mind, many scholarship opportunities have terms and conditions you must meet. Just because there is an engineering scholarship fund with unallocated funds doesn’t mean that the school can award it to a business major. Rules still apply but learn the rules to see if you meet the criteria of any scholarships offered by your school.
Exploring Scholarship Reallocation
- Research Scholarship Opportunities: Begin by thoroughly researching the scholarships your school offers. Pay close attention to those pertinent to your field of study, interests, or unique background.
- Engage with Financial Aid Officers: Set up a time to discuss the opportunity for your financial aid office. This includes checking their website to see if they prefer email communication, or a meeting in-person. Open lines of communication can lead to insights about newly available funds or scholarships for which you may now qualify.
- Present Your Case: Prepare to present your achievements, academic or otherwise, that might sway the decision in your favor when reallocated scholarships are being awarded.
- Update Your Application: Should you uncover specific scholarships that align with your profile, update your scholarship application to reflect any recent accomplishments or changed circumstances.
- Inquire About Future Availability: Sometimes scholarships that are not available this semester may have funds the next. Regularly inquire with the scholarship office to stay informed. By actively engaging with your school’s financial aid department and staying informed about scholarship offerings, you position yourself to be at the forefront when schools are considering the distribution of additional scholarship funds. A proactive approach paired with well-documented merits may lead to financial benefits that had not been previously awarded to you.
- Changes in Academic Status: If you've made significant academic strides or received noteworthy recognition since your initial financial aid offer, you might have grounds for additional merit-based aid.