filing-the-fafsa-2015-2016-edition

Filing the FAFSA 40
Note that after the student enters a list of schools on the FAFSA, he or she can change the order of the
schools. It is only the final order of the schools, when the FAFSA is submitted, that is provided to the
schools listed on the FAFSA.
If a college uses the colleges listed on the FAFSA and/or the order in which they are listed for college
admissions decisions, the college is in violation of section 483(a)(3)(E) of the Higher Education Act of
1965 [20 U.S.C. 1090(a)(3)(E)]. The Higher Education Act prohibits using the information collected on the
FAFSA for any purpose other than the “application, award and administration” of student financial aid.
The U.S. Department of Education is thinking about removing the list of colleges from the information
provided to colleges. Any changes, however, will not occur until the 2016-2017 award year.
Need-Blind Admissions
A college is need-blind if it does not consider the family’s finances when deciding whether to admit a
student. Otherwise, the college is need-sensitive or need-aware.
Almost 100 colleges claim to have a need-blind admissions policy. Of these, only a third offer need-blind
admissions to international students and four-fifths to transfer students. About a third will leave students
with unmet need, leading to an “admit-deny” situation, where the college admits low-income students
but denies them the financial aid they need to enroll.
Almost all need-blind schools become need-sensitive when admitting students off of the waiting list.
Only five say that they are need-blind for wait-listed students: Amherst, Babson, Bard, Baylor and
Wellesley.
Wealthy parents sometimes ask whether it is worthwhile to apply for financial aid, since applying for aid
can affect whether a college will admit a student. Need-sensitive admissions can be a two-edged sword,
since some colleges will admit wealthier students despite a marginal academic record. After all, the
college will receive more net tuition revenue (and, possibly, future donations) from a high-income student
than from a low-income student. Some colleges will even grant merit-based aid (more realistically, nonneed-based
aid) to attract such “full pay” students.
Families have a tendency to underestimate eligibility for need-based aid. So, unless the family can afford
to pay for the full college costs with cash, it may be best for them to still apply for financial aid.
Some families skip applying for financial aid for the freshman year, figuring that they have enough
resources to pay for the first year without financial aid and can apply for financial aid in subsequent
years. Such a strategy can backfire, since some colleges will not award institutional aid to students who
did not apply for financial aid the first year unless the family demonstrates a significant change in their
financial circumstances. It does no good for the student to get into an expensive college if the student and
his or her family can’t afford the cost. The student will then be forced to drop out, transfer or graduate
with excessive debt.