Students transfer to avoid college expenses
Government aid for college students has increased for the 2009-2010 school year. The Free Application for Federal Student Aid will provide more grants to those considered low income. According to the application policies, families are considered low income when they have at least three family members, with a total household income of $30,000 or less per year. In 2007, every low income student received $4,087 in aid; in 2008 the budget increased to $4,731; this year shows the biggest increase to $5,350.
While more money is being granted to students this year, those not considered low income are not on the receiving end. Sophomore IUPUI transfer student Ingrid Scott falls in that category.
“I was forced to transfer. I was paying full tuition at Butler,” Scott said. “I didn’t receive financial aid or loans, so I decided instead of being in debt to transfer.”
Scott’s situation is much like many students who fall right above the low income line. Scott, along with sophomore IUPUI transfer student Ashley Hammond, says Butler didn’t offer her any financial aid. However, when they transferred, most of their college was paid for.
“It was more my choice,” Hammond said. “My parents didn’t pressure me into it. But I felt the tension on their side, so I felt bad for going to a school where they’re paying full tuition without any help.”
The need for change
Each year, more than 3,000 students apply to transfer to IUPUI from other leading schools across the nation. Although Butler is taking steps to help more students financially, it still isn’t enough. Butler’s vice president of enrollment management, Tom Weede, said Butler reallocated $1 million this year to help more students.
“We knew going into this year, based on what was happening in the economy, that our families would probably show greater need, and we wanted to help to the extent that we could,” he said. “And that certainly happened.”
Weede said financial aid is a “touchy topic,” because nobody receives the amount they think they deserve.
“It becomes a question of what we’d like to do and what we’re able to do, because we don’t have a magic pot of money that’s simply available to give out more financial aid,” he said.
Students’ options for help
Students who face such problems have several choices to help afford tuition. Some colleges offer the Federal Supplemental Educational Opportunity Grant, which is reserved for students with the greatest need. The school makes a professional judgment to determine eligibility. Several factors go into the formula. These include the student’s income, parents’ income and assets, household size, number of family members attending postsecondary institutions and the expected family contribution. The school then looks at the student aid report and decides if the family is deserving of the grant. The maximum amount one can receive is $4,000 per year.
Although the supplemental grant helps many students, it has some drawbacks. Not all schools participate in this grant and it is given on a first come, first serve basis.
Loans, as well as grants, also present challenges with limits. Loan provider Sallie Mae allows students to borrow a subsidized loan, which means students do not have to pay interest. The amount for which students can apply increases with each year of school. Freshman can apply for up to $3,506; sophomores $4,500; juniors $5,500 and seniors $6,500.
Like the supplemental grant, subsidized loans have stipulations. The maximum amount to borrow is $31,000. For some students, like those attending Butler, these loans barely make a dent in the $28,460 tuition (not including room and board).
“I really miss the one-on-one attention with the professors,” Scott said of Butler. “None of my professors know my name or what I look like or anything like that.”
Hammond said she’s not alone in her decision to transfer. “There’s so many people that transferred just because it’s too expensive.”
Butler students struggling with tuition can visit the financial aid office to talk about their individual situations. Weede said the advisors will talk to anybody about their financial aid package.
“We will do the best that we can,” he said. “At the same time, the best that we can often doesn’t mesh with what a family thinks it should be.”
Weede said the reallocation has helped tremendously with retention this year. But he also recognizes that it cannot affect all students.
“It works better on the wide scale than it does the individual level,” he said.
Related Links
Butler University Financial Aid Homepage
Ivy Tech Financial Aid Homepage
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“The Five Minute FAFSA”
Acronyms on the FAFSA Student Aid Report (SAR)
EFC | Expected Family Contribution |
TI | Total Income |
ATI | Allowances Against Total Income |
STX | State and Other Tax Allowance |
EA | Employment Allowance |
IPA | Income Protection Allowance |
AI | Available Income |
CAI | Contribution from Available Income (Independent Student) |
DNW | Discretionary Net Worth |
APA | Education Savings and Asset Protection Allowance |
PCA | Parents’ Contribution from Assets |
AAI | Adjusted Available Income |
TPC | Total Parents’ Contribution |
TSC | Total Student’s Contribution |
PC | Parents’ Contribution |
SIC | Dependent Student’s Income Contribution |
SCA | Dependent Student’s Contribution from Assets |
Butler University Tuition and Expenses
Cost of Attendance | $41,836 |
---|---|
Tuition and Fees
|
$29,246 |
Room and Board | $9,740 |
Books and Supplies | $800 |
Other Expenses | $2,050 |
Payment Plans | Credit card, installment plan, prepayment discount |
Financial Aid Applicants | 866 (92.7%) of freshmen |
---|---|
Found to Have Financial Need | 585 (67.6%) of applicants |
Received Financial Aid | 585 (100.0%) of applicants with financial need |
Need Fully Met | 135 (23.1%) of aid recipients |
Average Percent of Need Met | Not reported |
Average Award | $21,260 |
Need-Based Gift | Received by 579 (99.0%) of aid recipients, average amount $16,381 |
Need-Based Self-Help | Received by 414 (70.8%) of aid recipients, average amount $4,652 |
Merit-Based Gift | Received by 144 (24.6%) of aid recipients |
Merit-Based Gift | Average amount $12,476 |
Financial Aid Applicants | 3,455 undergraduates |
---|---|
Found to Have Financial Need | 2,417 applicants |
Received Financial Aid | 2,417 (100.0%) of applicants with financial need |
Need Fully Met | 464 (19.2%) of aid recipients |
Average Percent of Need Met | Not reported |
Average Award | $19,880 |
Need-Based Gift | Received by 2,297 (95.0%) of aid recipients, average amount $15,109 |
Need-Based Self-Help | Received by 1,816 (75.1%) of aid recipients, average amount $5,704 |
Merit-Based Gift | Received by 457 (18.9%) of aid recipients |
Merit-Based Gift | Received by 918 undergraduates without need, average amount $11,401 |
2008 Graduates Who Took Out Loans |
62% |
---|---|
Average Indebtedness of 2008 Graduates |
$24,000 |
Parents Borrowing PLUS Loans | Not reported |
Parents of Students Receiving Aid |
Not reported |
Parents of Students Not Receiving Aid |
Not reported |
Filed Under: News