Sarah Farbman, senior admissions consultant, frames it simply: “There are essentially three sources of aid — the college itself providing need-based or merit-based awards, and then external scholarships from outside organizations. Within those sources, the aid takes different forms that families need to understand.”

Below, we break down each type, explain how they appear on award letters, and share the insider strategies our counselors use to help families maximize their financial outcomes.

1. Grants: Free Money Based on Financial Need

Grants are the gold standard of financial aid because they are free money — no repayment required. They are sometimes referred to as “gift aid” and are typically awarded based on a family’s demonstrated financial need as calculated through the FAFSA or CSS Profile.

The major federal grant programs include:

• Pell Grants are awarded to students with exceptional financial need, with a maximum award of approximately $7,395 per academic year. Pell Grants are an entitlement — if you qualify based on the government’s criteria, you will receive the funds. Once a family’s Student Aid Index (SAI, formerly called the Expected Family Contribution or EFC) exceeds a certain threshold, the student becomes ineligible.
• Supplemental Educational Opportunity Grants (SEOG) are also federally funded but distributed by colleges themselves from a limited annual allocation. These need-based grants can range up to $4,000 per year. Because each school receives a finite amount, the funding can be depleted — students who apply late may miss out even if they qualify. This is one reason Sarah Farbman stresses filing early: “The sooner you get in line for money, the more money you are going to get. Schools at some point will max out their financial aid budget, so you want to be first in line before they max it out.”
• State grants vary by state and may require enrollment at an in-state institution. Check your state’s higher education agency for specific programs and deadlines.

2. Scholarships: Merit-Based and Criteria-Based Awards

Like grants, scholarships do not require repayment. The key difference is how they are awarded: while grants are need-based, scholarships are typically merit-based or criteria-based, rewarding academic achievement, athletic talent, artistic ability, community involvement, or other specific qualifications.

Sarah Farbman draws a clear line between the two: “Need-based aid is based on an algorithm. You fill out a form — whether it’s the FAFSA or the CSS Profile — and the colleges are going to package you how they want. Merit-based aid is what we like to think of as a discount. People call it a scholarship, and it is, but from the college’s perspective, it is a recruitment tool to attract strong students. It is not related to the FAFSA.”

Scholarships can come from colleges themselves (institutional merit scholarships) or from external sources such as corporations, foundations, community organizations, or religious institutions. External scholarships range widely — from small one-time awards of $500 to $2,000 from local organizations up to rare full-ride scholarships from major foundations like the Coca-Cola Scholars Program.

However, families should be aware of “stacking” policies before investing significant time pursuing outside awards. In some cases, colleges will reduce the merit scholarships they offer you by the amount you receive from a third party — especially if the third party scholarship is paid directly to the institution. Always contact a school’s financial aid office to ask how outside scholarships will affect your institutional aid.

For a deeper look at scholarship strategy, see our guide on whether applying for financial aid affects admissions chances.

3. Loans: Borrowed Money You Must Repay

Loans are a common component of financial aid packages, but they are fundamentally different from grants and scholarships — they must be repaid with interest. As Sarah explains, when helping families decode award letters, loans fall into the category of “your money later,” and should be considered separately from gift aid when evaluating an offer.

It is important to remember: taking out a loan is always optional. It is entirely at the family’s discretion, regardless of what appears in the award letter.

The main types of student loans include:

• Subsidized Loans (Direct Subsidized Loans) are available only to students who demonstrate need on the FAFSA. The federal government pays the interest while the student is enrolled at least half-time and during the six-month grace period after graduation. These are taken out in the student’s name.
• Unsubsidized Loans (Direct Unsubsidized Loans) are available to any student regardless of need. Interest begins accruing immediately from the date of disbursement. Students can defer payments until after graduation, but the unpaid interest will capitalize (be added to the principal), increasing the total amount owed. These are also in the student’s name.
• Parent PLUS Loans are federal loans taken out in the parent’s name. They generally carry a higher interest rate than student loans, and repayment begins as soon as the loan is fully disbursed unless the borrower requests deferment. Families must have filed the FAFSA to access Parent PLUS Loans.
• Private Loans from banks or private lenders are typically a last resort after all federal options have been exhausted. Interest rates vary and may be higher than federal loan rates, and terms are less flexible.

Annual Federal Student Loan Limits (Dependent Students)

Sarah warns families to look carefully at award letters because schools often group loans alongside grants under a single “Total Aid” figure: “Financial aid letters can be very confusing. That total they’re giving you needs to be broken down carefully, because in some cases those are loans with interest rates that you’re going to have to pay back, and in other cases they are grants, which are free money.”

4. Work-Study: Earning Money Through Campus Employment

Federal Work-Study (FWS) provides eligible students with part-time employment, typically on campus, funded jointly by the federal government and the college. Unlike grants, work-study money is earned — the student receives a regular paycheck for hours worked.

Key things families should understand about work-study:

Having work-study in your aid package does not guarantee a job. It makes the student eligible to apply for designated positions, but the student must find and secure employment. Sarah notes that the experience varies by school: “Some colleges will assign you a place you’re going to work — a guaranteed position. In other cases, it’ll say you need to go find a job. My son at a public university — it said he could get a job on campus, but he had to go out and get the job.”

Work-study earnings are typically modest — often around $2,000 per semester at roughly minimum wage. At $15 an hour, it’s going to take a while to make a considerable dent in your college bill. Plus that is still your money. You are working for it.

One parent in the Great College Advice community shared a helpful realization: work-study should be viewed as a budgeting tool for personal expenses rather than a meaningful offset to tuition.

5. Institutional Funds: The College’s Own Money

In addition to federal and state programs, colleges and universities use their own institutional funds to round out financial aid packages. These funds — generated from endowment income, tuition revenue, and fundraising — are among the most powerful tools available to families seeking to reduce college costs.

Institutional funds take two primary forms:

Institutional grants are need-based awards from the college’s own budget. Some schools use the CSS Profile alongside their own internal algorithms to assess a family’s financial situation and determine whether institutional grant money will be provided. These grants can be a significant source of additional aid when federal funds alone are not enough.

Institutional merit scholarships are discounts colleges use to recruit students they want on campus. This is where strategic college list-building becomes a family’s most powerful financial tool.

Sarah Farbman is direct about the landscape: “Elite schools like Yale, Princeton, and Stanford do not need to use discounting as a recruitment tool. You could be the best student in the entire universe — you are not going to get a merit-based scholarship at Yale. They don’t do it.” However, she adds: “There are many high-quality public and private institutions that regularly offer students $20,000 to $35,000 off the sticker price because they are using it as part of their recruitment strategy.”

Jamie Berger, veteran college admissions expert, reinforces this point: “Having us help you do everything just right for a year — the sticker price for us might seem large, but it might save you $20,000 a year by getting more merit aid at a college.” He emphasizes that the number one strategy for maximizing institutional merit aid is building the right college list — one that includes schools known for generous discounting where your student will be competitive for those awards.

Understanding which schools use institutional funds generously — and building a balanced college list that accounts for cost considerations — is one of the most important financial decisions in the entire admissions process.

How to Tell the Difference on Your Award Letter

When award letters arrive, the most critical skill is separating “other people’s money” from “your money later.” We recommend families start by identifying the full Cost of Attendance (COA) — not just tuition and fees, but food, housing, travel, books, supplies, and personal expenses — and then categorize every line item in the aid package.

Quick Reference: Financial Aid Categories

At Great College Advice, families use a proprietary comparison spreadsheet that standardizes every school’s offer. 

It All Starts With the FAFSA

To be considered for any federal or need-based institutional financial aid, families must file the FAFSA (Free Application for Federal Student Aid). The FAFSA opens on October 1 each year, and early filing is critical.

Even families who believe they will not qualify for need-based aid should strongly consider filing. The Great College Advice Family Handbook puts it this way: “Over 70% of college applicants apply for financial aid. Although applying for financial aid can present many challenges and can be a tedious process, you definitely should not shy away from applying because you assume that it won’t be fruitful.”

Filing the FAFSA also establishes a financial benchmark — an insurance policy of sorts. If circumstances change (job loss, medical emergency), having a baseline on file makes it easier to request a reassessment. Additionally, the FAFSA is required to access federal student loans and, at some schools, to be considered for merit-based scholarships.

Some private colleges additionally require the CSS Profile, which collects more detailed financial information — including home equity — and uses institutional algorithms to determine how much of the college’s own funds to award. Check each school’s requirements well in advance, especially if applying Early Decision or Early Action.

For a complete month-by-month guide, see our Financial Aid Timeline for High School Seniors.

The Bottom Line: Build the Right College List

Understanding the five types of financial aid is essential, but the families who get the best financial outcomes are those who use this knowledge strategically from the very beginning of the college search. At Great College Advice, our team of counselors with over 100 years of combined admissions experience helps families navigate this complex landscape every day. 

Great College Advice counselors leverage experience, proprietary data, and deep knowledge of institutional aid patterns to help families build lists that balance reach, target, and likely schools with realistic financial expectations.

Ready to build a financial aid strategy tailored to your family? Schedule a free consultation with our team.

The post 5 Different Kinds of Financial Aid first appeared on Great College Advice.

For practical parents focused on value and ROI, understanding what scholarships and financial aid are available in the US is essential groundwork before weighing your final options.

What criteria should we use to evaluate and compare colleges for best fit and value?

When evaluating colleges, start with financial criteria as your foundation—this should be the starting point for all families, regardless of income level. From there, develop a comprehensive list that includes academic factors (majors offered, class sizes, faculty accessibility), location preferences (urban vs. suburban, distance from home), and social considerations (campus culture, extracurricular opportunities). Great College Advice uses a detailed assessment with over 100 categories, using pull-down menus ranging from “must have” to “not interested,” covering everything from specific majors to campus size to internship availability.

The key insight is to focus on “compatibility” and “preferences” rather than chasing “dream schools” or “perfect fits.” College selection always involves some compromise, and the goal is to satisfy most criteria rather than maximize every single factor. 

How do we calculate the real cost of attending each college on our list?

To calculate the true cost of college, you need to understand three key numbers: Cost of Attendance (COA), Student Aid Index (SAI), and Net Price.

Start by reviewing each school’s COA on their website—this includes tuition, fees, room, board, books, and estimated personal expenses. However, personalize this number based on your student’s actual lifestyle: factor in car expenses if bringing one, technology costs, travel between home and school, and off-campus food and entertainment.

Next, use the federal Student Aid Estimator at studentaid.gov to estimate your SAI. Most importantly, run each college’s Net Price Calculator (NPC)—schools are legally required to provide these tools. As veteran college admissions expert Jamie Berger advises: “Every family should be going in and doing the Net Price Calculator for each school they want to apply to.”

While NPCs provide estimates rather than guarantees, going through this process for every school on your list gives you directional guidance on affordability. Paul Wingle, a respected voice in the Great College Advice community, reinforces this approach: “The family should be clear on what they can afford, be clear with their student regarding the number, run the net price calculator, and not count on merit unless and until merit is awarded.”

Should my student apply Early Decision if we need financial aid?

If financial aid is a significant factor in your college decision, approach Early Decision (ED) with caution. ED is a binding commitment—if accepted, your student must attend regardless of the financial aid package offered.

As Jamie Berger, a highly acclaimed college admissions counselor, explains: “If you apply Early Decision, you are bound to accept that offer. Early Action still gives you that bargaining ability. Early Decision does not. It is somewhat like buying a car—if you get four financial offers from four colleges and your top choice gives you the least amount of money, you can write to them and bargain. Early Decision eliminates that leverage entirely.”

The ED system can also subtly disadvantage students with high financial need. Qualified but not standout applicants may be deferred to the regular round so colleges can “shop around” for full-pay students. Great College Advice generally recommends that students with significant financial need avoid ED unless applying to one of the few schools that guarantee to meet 100% of demonstrated financial need.

Bonnie Hale, another trusted voice in the Great College Advice community, offers practical timing advice: “As long as all of his supplemental essays are ready, he should definitely wait until he receives the ED decision. Save money on application fees, and IF admitted, he’d have to withdraw all other applications per ED agreement.”

A better strategy for aid-dependent families is applying through non-binding plans and comparison-shopping aid packages once all decisions arrive. 

How do we build a balanced college list with reach, target, and likely schools?

A balanced college list should include schools across three categories: reach schools (where admission is uncertain but possible), target schools (where your student’s profile aligns well with admitted student averages), and likely schools (where admission is highly probable).

As Paul Wingle advises: “A balanced list should include reach schools, and with reach schools comes the strong possibility of a denial or two, even for well-credentialed applicants. Hopefully, your list includes other schools where you might study your preferred major, and that those schools represent a range of selectivity.”

The key is ensuring your student would be genuinely happy at every school on the list, including the likely admits. Great College Advice recommends around 8 to 12 schools as an ideal range—this allows strategic coverage without the diminishing returns of over-applying. Jamie Berger puts it directly: “If you make a good list, you don’t have to make a huge list.”

For each category, ensure schools meet your financial parameters by running Net Price Calculators. If your student is unsure about their major or has multiple areas of interest, prioritize schools with strengths across those potential fields, making any future major change easier.

Avoid the trap of applying to eight highly selective schools hoping statistics will favor you—think about your individual chances at each institution rather than aggregate admission rates. 

When should we make campus visits, and what should we look for during tours?

Campus visits are among the most important moments in college selection—schedule them strategically during the fall and spring of junior year or the summer and fall of senior year for initial exploration, then revisit top choices after acceptances arrive.

When visiting, go beyond the polished admissions tour. Let your student take the lead—they should ask questions, take notes, and capture photos to aid memory later. If multiple tour guides are available, consider splitting up: the student goes with one group, the parents with another, then compare notes afterward.

Beyond the standard tour, check the campus events calendar for lectures, performances, or sporting events during your visit. Eat in the dining halls, explore the surrounding neighborhood, test public transportation, and locate basic necessities like grocery stores. The more time you spend on campus, the more information you will gather and the better sense you will get of the college.

Most importantly, develop a list of criteria-based questions before you arrive—rather than passively absorbing information, actively gather data points that matter for your specific decision. Virtual visits can supplement but rarely replace the visceral feel of spending a full day on campus.

How can we negotiate or compare financial aid packages from different colleges?

Once you receive multiple admission offers, carefully compare financial aid packages by looking beyond the bottom line. Examine the composition of each package: how much is grants and scholarships (free money) versus loans (which must be repaid) versus work-study (which requires your student’s time)? Federal subsidized loans are more favorable than unsubsidized loans.

For negotiation, Jamie Berger explains the process: “If you get four financial offers from four colleges and your top choice gives you the least amount of money, you write to them. Can you approach that? Can you help us in any way? We really want to go to Villanova. You can bargain with them.”

Present competing offers respectfully, emphasizing your student’s genuine interest in the school. Be specific about the gap you’re asking them to close. Some schools have formal appeal processes; others handle requests informally. Timing matters—don’t wait until the May 1st deadline approaches.

As Paul Wingle counsels families waiting on decisions: “Do not make an enrollment commitment before costs are known. Do you have any other active applications out at other schools? Do you want to compare aid offers?” Never deposit until you fully understand your costs after aid.

How do we weigh academic fit against financial considerations when choosing a college?

Balancing academic fit with financial realities requires honest family conversations and clear prioritization. Parents should consider the higher education investment as an investment in their student, rather than as an investment in a particular university or a particular major.

Your student’s personal characteristics, work ethic, and network-building will ultimately drive career outcomes more than institutional prestige alone. For ROI calculations, recognize that earning potential depends heavily on location choices, industry selection, and individual attributes, not just the degree. Payscale.com provides earnings data by major as a starting point, but these are averages that may not reflect your student’s specific path.

When weighing options, ask: Will this school support my student’s academic interests and career exploration? Can we afford it without crippling debt? Does the campus culture fit my student’s personality and learning style?

If a school excels academically but creates financial strain requiring excessive loans, that “better” school may actually produce worse long-term outcomes. The Great College Advice philosophy emphasizes that students often thrive at many different institutions—finding a compatible environment that’s financially sustainable typically outweighs marginal prestige differences.

Below, a graduate of Rhodes University in Memphis recounts how she chose her college.

“I followed the money. When looking at schools, I sought out schools that had good reputations for liberal arts and hands-on instruction. Although I was accepted to my top picks, I ultimately chose the school that offered me the most money, even though it was at the bottom of my list.

Was this a good choice? It’s hard to say. I do believe that students should ultimately follow their gut instinct, but I also think that college is what you make of it. I knew that I could survive anywhere, so it was the right decision for me to get a quality education for a good price. If tuition was not a concern, I would have chosen the school that I felt best complemented my personality, learning style and interests. (And I probably would have had a more positive collegiate experience.)

I suggest to students that they pick a dealbreaker quality. What one thing is most important to them? Be it cost, location, course offerings, etc. Then eliminate all schools that don’t fulfill the qualifications of their dealbreaker. What is left is generally a short list, so then I suggest that they trust their instincts and pick the school that feels right and fulfills their key requirement.”

This correspondent went on to pursue two graduate degrees, and is now an information specialist and reference librarian in Memphis.

Her strategy is an excellent one, and one that many students and parents don’t consider. There are literally thousands of colleges in the US, and hundreds of excellent ones. If money is a consideration, build your college list around that principal criterion. Many colleges are willing to pay top dollar (by giving substantial tuition discounts and scholarships) to well-qualified applicants.

Do NOT sell yourself short. If you have talents and academic abilities, be prepared to show them off during the admissions process. And depending on the audience for whom you are prepared to show off, you may get money thrown at you!

Continue your research: Understanding your full range of funding options is crucial before making any final decisions. If you seek professional help, schedule a free consultation with a counselor today.

The post Helping Your Student Choose a College first appeared on Great College Advice.

Helping your student choose the right college requires balancing academic fit, campus culture, and financial reality—and there’s no single “perfect” answer. The most effective approach starts with establishing clear financial parameters, then systematically evaluating schools against your family’s specific criteria for academics, location, and student experience. 

For practical parents focused on value and ROI, understanding what scholarships and financial aid are available in the US is essential groundwork before weighing your final options.

What criteria should we use to evaluate and compare colleges for best fit and value?

When evaluating colleges, start with financial criteria as your foundation—this should be the starting point for all families, regardless of income level. From there, develop a comprehensive list that includes academic factors (majors offered, class sizes, faculty accessibility), location preferences (urban vs. suburban, distance from home), and social considerations (campus culture, extracurricular opportunities). Great College Advice uses a detailed assessment with over 100 categories, using pull-down menus ranging from “must have” to “not interested,” covering everything from specific majors to campus size to internship availability.

The key insight is to focus on “compatibility” and “preferences” rather than chasing “dream schools” or “perfect fits.” College selection always involves some compromise, and the goal is to satisfy most criteria rather than maximize every single factor. 

How do we calculate the real cost of attending each college on our list?

To calculate the true cost of college, you need to understand three key numbers: Cost of Attendance (COA), Student Aid Index (SAI), and Net Price.

Start by reviewing each school’s COA on their website—this includes tuition, fees, room, board, books, and estimated personal expenses. However, personalize this number based on your student’s actual lifestyle: factor in car expenses if bringing one, technology costs, travel between home and school, and off-campus food and entertainment.

Next, use the federal Student Aid Estimator at studentaid.gov to estimate your SAI. Most importantly, run each college’s Net Price Calculator (NPC)—schools are legally required to provide these tools. As veteran college admissions expert Jamie Berger advises: “Every family should be going in and doing the Net Price Calculator for each school they want to apply to.”

While NPCs provide estimates rather than guarantees, going through this process for every school on your list gives you directional guidance on affordability. Paul Wingle, a respected voice in the Great College Advice community, reinforces this approach: “The family should be clear on what they can afford, be clear with their student regarding the number, run the net price calculator, and not count on merit unless and until merit is awarded.”

Should my student apply Early Decision if we need financial aid?

If financial aid is a significant factor in your college decision, approach Early Decision (ED) with caution. ED is a binding commitment—if accepted, your student must attend regardless of the financial aid package offered.

As Jamie Berger, a highly acclaimed college admissions counselor, explains: “If you apply Early Decision, you are bound to accept that offer. Early Action still gives you that bargaining ability. Early Decision does not. It is somewhat like buying a car—if you get four financial offers from four colleges and your top choice gives you the least amount of money, you can write to them and bargain. Early Decision eliminates that leverage entirely.”

The ED system can also subtly disadvantage students with high financial need. Qualified but not standout applicants may be deferred to the regular round so colleges can “shop around” for full-pay students. Great College Advice generally recommends that students with significant financial need avoid ED unless applying to one of the few schools that guarantee to meet 100% of demonstrated financial need.

Bonnie Hale, another trusted voice in the Great College Advice community, offers practical timing advice: “As long as all of his supplemental essays are ready, he should definitely wait until he receives the ED decision. Save money on application fees, and IF admitted, he’d have to withdraw all other applications per ED agreement.”

A better strategy for aid-dependent families is applying through non-binding plans and comparison-shopping aid packages once all decisions arrive. 

How do we build a balanced college list with reach, target, and likely schools?

A balanced college list should include schools across three categories: reach schools (where admission is uncertain but possible), target schools (where your student’s profile aligns well with admitted student averages), and likely schools (where admission is highly probable).

As Paul Wingle advises: “A balanced list should include reach schools, and with reach schools comes the strong possibility of a denial or two, even for well-credentialed applicants. Hopefully, your list includes other schools where you might study your preferred major, and that those schools represent a range of selectivity.”

The key is ensuring your student would be genuinely happy at every school on the list, including the likely admits. Great College Advice recommends around 8 to 12 schools as an ideal range—this allows strategic coverage without the diminishing returns of over-applying. Jamie Berger puts it directly: “If you make a good list, you don’t have to make a huge list.”

For each category, ensure schools meet your financial parameters by running Net Price Calculators. If your student is unsure about their major or has multiple areas of interest, prioritize schools with strengths across those potential fields, making any future major change easier.

Avoid the trap of applying to eight highly selective schools hoping statistics will favor you—think about your individual chances at each institution rather than aggregate admission rates. 

When should we make campus visits, and what should we look for during tours?

Campus visits are among the most important moments in college selection—schedule them strategically during the fall and spring of junior year or the summer and fall of senior year for initial exploration, then revisit top choices after acceptances arrive.

When visiting, go beyond the polished admissions tour. Let your student take the lead—they should ask questions, take notes, and capture photos to aid memory later. If multiple tour guides are available, consider splitting up: the student goes with one group, the parents with another, then compare notes afterward.

Beyond the standard tour, check the campus events calendar for lectures, performances, or sporting events during your visit. Eat in the dining halls, explore the surrounding neighborhood, test public transportation, and locate basic necessities like grocery stores. The more time you spend on campus, the more information you will gather and the better sense you will get of the college.

Most importantly, develop a list of criteria-based questions before you arrive—rather than passively absorbing information, actively gather data points that matter for your specific decision. Virtual visits can supplement but rarely replace the visceral feel of spending a full day on campus.

How can we negotiate or compare financial aid packages from different colleges?

Once you receive multiple admission offers, carefully compare financial aid packages by looking beyond the bottom line. Examine the composition of each package: how much is grants and scholarships (free money) versus loans (which must be repaid) versus work-study (which requires your student’s time)? Federal subsidized loans are more favorable than unsubsidized loans.

For negotiation, Jamie Berger explains the process: “If you get four financial offers from four colleges and your top choice gives you the least amount of money, you write to them. Can you approach that? Can you help us in any way? We really want to go to Villanova. You can bargain with them.”

Present competing offers respectfully, emphasizing your student’s genuine interest in the school. Be specific about the gap you’re asking them to close. Some schools have formal appeal processes; others handle requests informally. Timing matters—don’t wait until the May 1st deadline approaches.

As Paul Wingle counsels families waiting on decisions: “Do not make an enrollment commitment before costs are known. Do you have any other active applications out at other schools? Do you want to compare aid offers?” Never deposit until you fully understand your costs after aid.

How do we weigh academic fit against financial considerations when choosing a college?

Balancing academic fit with financial realities requires honest family conversations and clear prioritization. Parents should consider the higher education investment as an investment in their student, rather than as an investment in a particular university or a particular major.

Your student’s personal characteristics, work ethic, and network-building will ultimately drive career outcomes more than institutional prestige alone. For ROI calculations, recognize that earning potential depends heavily on location choices, industry selection, and individual attributes, not just the degree. Payscale.com provides earnings data by major as a starting point, but these are averages that may not reflect your student’s specific path.

When weighing options, ask: Will this school support my student’s academic interests and career exploration? Can we afford it without crippling debt? Does the campus culture fit my student’s personality and learning style?

If a school excels academically but creates financial strain requiring excessive loans, that “better” school may actually produce worse long-term outcomes. The Great College Advice philosophy emphasizes that students often thrive at many different institutions—finding a compatible environment that’s financially sustainable typically outweighs marginal prestige differences.

Below, a graduate of Rhodes University in Memphis recounts how she chose her college.

“I followed the money. When looking at schools, I sought out schools that had good reputations for liberal arts and hands-on instruction. Although I was accepted to my top picks, I ultimately chose the school that offered me the most money, even though it was at the bottom of my list.

Was this a good choice? It’s hard to say. I do believe that students should ultimately follow their gut instinct, but I also think that college is what you make of it. I knew that I could survive anywhere, so it was the right decision for me to get a quality education for a good price. If tuition was not a concern, I would have chosen the school that I felt best complemented my personality, learning style and interests. (And I probably would have had a more positive collegiate experience.)

I suggest to students that they pick a dealbreaker quality. What one thing is most important to them? Be it cost, location, course offerings, etc. Then eliminate all schools that don’t fulfill the qualifications of their dealbreaker. What is left is generally a short list, so then I suggest that they trust their instincts and pick the school that feels right and fulfills their key requirement.”

This correspondent went on to pursue two graduate degrees, and is now an information specialist and reference librarian in Memphis.

Her strategy is an excellent one, and one that many students and parents don’t consider. There are literally thousands of colleges in the US, and hundreds of excellent ones. If money is a consideration, build your college list around that principal criterion. Many colleges are willing to pay top dollar (by giving substantial tuition discounts and scholarships) to well-qualified applicants.

Do NOT sell yourself short. If you have talents and academic abilities, be prepared to show them off during the admissions process. And depending on the audience for whom you are prepared to show off, you may get money thrown at you!

Continue your research: Understanding your full range of funding options is crucial before making any final decisions. If you seek professional help, schedule a free consultation with a counselor today.

The post How to Help My Student Choose a College first appeared on Great College Advice.

At Great College Advice, we work with families every day who are navigating the financial side of college admissions and seeking scholarships and financial aid opportunities. One of the most important things we tell parents is this: external scholarships are a valuable supplement, but they are secondary to the financial aid and merit-based scholarships awarded directly by colleges. Institutional aid is the single biggest funding source for most students. That said, external scholarships represent real money, and a strategic approach can add thousands of dollars to your child’s college fund.

Below, we break down the best scholarship resources, explain how to evaluate them, and share insider strategies drawn from our team’s decades of admissions experience.

How External Scholarships Fit Into Your College Funding Strategy

External scholarships are real money, and they add up. But the families who save the most on college do not rely on outside awards alone. The most impactful financial decision most families make is building a strategic college list that includes schools likely to offer significant institutional merit aid. Before applying for aid, you should also understand how financial aid interacts with admissions.

Many quality colleges and universities routinely discount tuition by $20,000 to $35,000 per year for strong applicants, and those numbers can often be negotiated upward with competing offers from peer institutions. Over four years, that represents $80,000 to $140,000 in savings — a figure that dwarfs most external scholarship awards.

Jamie Berger, veteran college admissions expert, has guided families through this process for years: “For successful financial planning, it is crucial to have clearly defined expectations about what each college on your list is likely to offer. Strategic list-building is not just about admissions. It is about putting your family in the strongest possible financial position.”

External Scholarship Resources at a Glance

Frequently Asked Questions About External Scholarship Resources

What are the best external scholarship resources for high school seniors?

The most effective scholarship search starts closer to home than most families expect. Sarah Farbman, Senior Admissions Consultant at Great College Advice, advises families to begin with their high school guidance counselor: “Your guidance counselor is a resource many families underuse. They often know about local scholarships that never appear on any website, and those awards typically have far fewer applicants.”

Once you have explored local options, move to the major aggregator platforms. These are the expert-vetted scholarship search engines that our team recommends:

• Fastweb — One of the largest and longest-running scholarship databases, listing both traditional academic awards and niche scholarships. Great College Advice has highlighted Fastweb as a comprehensive resource for finding everything from conventional merit awards to unusual opportunities.
• Big Future (College Board) — The College Board’s scholarship search tool connects students with awards based on their academic profile, intended major, and personal background. Because Big Future draws from College Board data, it can surface opportunities matched to your PSAT, SAT, or AP performance.
• Going Merry — A modern platform that streamlines the application process, allowing students to apply to multiple scholarships through a single profile.
• Scholarships.com — A free, well-organized search engine that categorizes awards by deadline, award amount, and eligibility criteria.
• Appily (formerly Cappex) — Particularly useful for matching students with colleges that offer merit aid in addition to listing external scholarships.
• College Xpress — Offers scholarship searches alongside college matching tools, useful for families building a strategic college list.
• Unigo — Known for curating unique and niche scholarship opportunities that students may not find elsewhere.

For a broader look at financial aid websites, including resources for FAFSA guidance and loan management, see our consultant Andrea Aronson’s guide to the top websites for financial aid assistance.

The bottom line: Use aggregator platforms as discovery tools, but invest your deepest effort in local and niche scholarships where the odds are genuinely in your favor.

How do I find local scholarships that are less competitive?

Local scholarships are among the most overlooked opportunities in the college funding landscape, and for practical families focused on ROI, they should be at the top of your list.

As the Great College Advice Family Handbook explains, “Local scholarships are much better bets than broader scholarship search websites.” The reason is straightforward: a community scholarship from your town’s Rotary Club or a local business association may attract 20 to 50 applicants, compared to tens of thousands for a nationally advertised award. Your odds improve dramatically.

Here is where to look:

• Your high school guidance counselor — The single best starting point. Counselors maintain lists of community-based awards that are rarely publicized online.
• Local civic organizations — Rotary, Kiwanis, Elks Lodge, Lions Club, and Veterans of Foreign Wars chapters all sponsor scholarships.
• Employer-sponsored programs — Check whether your employer (or your child’s employer) offers scholarships for employees’ children.
• Religious institutions — Churches, synagogues, mosques, and other houses of worship frequently offer education grants to congregants’ families.
• Community foundations — Nearly every county and region has a community foundation that administers dozens of small scholarship funds.
• State higher education agencies — Many states offer merit and need-based grants that require a simple application.

One parent in the Great College Advice community shared that their child applied to eight local scholarships and won three of them, totaling over $4,000, while a nationally advertised $10,000 award they spent considerable time on yielded nothing. The competitiveness hierarchy works in your favor: local awards beat regional, regional beat state, and state beat national.

Are scholarship search engines like Fastweb and Going Merry worth using?

Yes, but with realistic expectations. Scholarship aggregators are excellent for discovering opportunities you would never find on your own, particularly niche awards tied to specific interests, backgrounds, or career goals. Fastweb alone lists scholarships worth billions of dollars collectively.

The trade-off is the volume of competition. Because millions of students use these platforms, any scholarship listed on Fastweb or Going Merry will attract a large applicant pool. That does not make them useless; it means you should be strategic about which listed scholarships you pursue.

Focus on awards where your child closely matches the specific eligibility criteria. A scholarship for left-handed students studying marine biology in the Pacific Northwest has a tiny applicant pool, even on a national platform. The Great College Advice Family Handbook notes some genuinely unusual scholarship categories: there are awards for duct tape prom attire (the Stuck at Prom scholarship offers $5,000), a scholarship specifically for redheads, and a tall persons scholarship for women 5’10” and over or men 6’2″ and over.

Important: Every legitimate scholarship search platform is free. If any service asks you to pay a fee to access scholarship listings, treat it as a red flag. You should never have to pay to find scholarships.

How do I calculate whether a scholarship application is worth the effort?

This is the question that separates strategic families from those who burn out on scholarship applications. Sarah Farbman puts it plainly: “If that scholarship is $500 or $1,000 and it takes you several hours to write a brand-new essay, you have to do the math for yourself.”

Here is a practical framework for evaluating scholarship ROI:

Step 1: Estimate your hourly return. Divide the scholarship amount by the number of hours you expect to spend on the application. A $2,000 scholarship that takes four hours of work nets you an effective $500 per hour — an excellent return. A $500 scholarship requiring six hours of original essay writing yields roughly $83 per hour, which may still be worthwhile but is less compelling.

Step 2: Factor in essay reuse. Many scholarship prompts revolve around the same themes: leadership, community impact, career goals, overcoming adversity. If your child can repurpose an essay already written for a college application, the time investment drops substantially and the ROI improves.

Step 3: Assess the competition. A local scholarship with 30 applicants offers fundamentally different odds than a national award with 30,000 applicants. Weight your effort toward lower-competition opportunities.

Step 4: Prioritize renewable awards. A $2,000 annual scholarship, renewable for four year,s is worth $8,000, dramatically better than a one-time award of the same amount.

For families working with a college admissions consultant, the scholarship search strategy is often integrated with the broader college list-building process, ensuring that the schools your child applies to are already positioned to offer strong merit aid. As Jamie Berger, veteran college admissions expert, emphasizes, building a smart college list is the most powerful financial strategy because institutional merit aid can save $20,000 to $35,000 per year at many quality institutions.

Can winning an external scholarship reduce the merit aid my college offers?

This is one of the most important and least-discussed realities of college financial aid, and it catches families off guard every year.

The answer is: it depends entirely on the college. Some institutions have scholarship stacking policies that reduce your institutional grant dollar-for-dollar when you bring in outside scholarships. In that scenario, a $3,000 external scholarship simply replaces $3,000 of the college’s own money, and your family’s out-of-pocket cost stays exactly the same.

Other colleges handle outside scholarships more favorably. Some will first reduce any loans in your aid package (which genuinely helps you), while others allow external scholarships to stack on top of institutional aid, effectively reducing your total cost.

Jamie Berger’s advice to families on this topic is characteristically direct: “Every school is different. Contact them directly.” Before investing significant time applying for external scholarships, call or email the financial aid office at each college on your child’s list and ask specifically: “How does your institution handle outside scholarship awards in relation to our financial aid package?”

A community member noted that financial aid packages can vary widely even for the same student, which makes this due diligence essential. The same outside scholarship could save your family thousands at one school and make zero financial difference at another.

For a deeper understanding of how financial aid decisions work and why filing early matters, see our financial aid timeline for high school seniors.

What is the difference between renewable and one-time scholarships?

Understanding this distinction is critical for families thinking about college costs over the full four years, not just freshman year.

Renewable scholarships are awarded annually for multiple years (typically four), provided the student maintains specific conditions such as a minimum GPA, full-time enrollment, or continued participation in a particular program. A $5,000 renewable scholarship is actually worth $20,000 over a four-year degree. These awards represent the highest-value external scholarships available.

One-time scholarships are paid out once and do not repeat. A $5,000 one-time award is worth exactly $5,000, which is still valuable but represents a fundamentally different proposition for long-term financial planning.

The Great College Advice Family Handbook notes that third-party scholarships generally range from a few hundred to several thousand dollars, with the total value depending heavily on whether the award is renewable. When comparing two opportunities, a $1,500 renewable award nearly always beats a $3,000 one-time award in total value.

One caution: renewable scholarships carry risk. If your child’s GPA dips below the renewal threshold, the scholarship disappears, creating a sudden funding gap that is difficult to replace mid-college. As one family in the Great College Advice community observed, losing a scholarship when transferring between colleges is another common pitfall, since many merit awards are not portable. Read renewal conditions carefully, and factor that risk into your financial planning.

When should my child start searching and applying for external scholarships?

The ideal time to begin a focused external scholarship search is the summer before senior year, though awareness should start much earlier. Some scholarships accept applicants as early as freshman year, and a few programs specifically target younger students to build a pipeline.

Here is a practical timeline:

Junior year spring (March–May): Begin researching scholarship databases and building a list of opportunities with deadlines in the fall and winter. Identify essay themes that overlap with your college application essays.

Summer before senior year (June–August): Draft reusable essay templates around common scholarship themes: leadership, community service, career aspirations, overcoming challenges. Visit your guidance counselor to collect local scholarship information.

Senior year fall (September–December): Apply aggressively. Many of the best scholarships have fall deadlines that coincide with college application season. File the FAFSA as soon as it opens on October 1, as some scholarship and institutional aid programs reference FAFSA data, and filing early maximizes your aid eligibility.

Senior year spring (January–May): Continue applying to scholarships with spring deadlines. Review financial aid award letters as they arrive and compare how external scholarships interact with each school’s aid package.

As one parent in the Great College Advice community shared, filing the FAFSA early made a significant difference in their child’s overall aid package, and they wished they had started the scholarship application process sooner rather than treating it as an afterthought.

For a comprehensive look at every deadline and milestone from freshman through senior year, explore our college admissions guide for high school.

Apply for Financial Aid with an Expert by Your Side

We help families get accepted with scholarships. At Great College Advice, our consultants integrate scholarship strategy into the broader admissions plan from day one. We help families identify which colleges are most likely to offer strong merit packages, how to position applications for maximum aid, and when it makes sense to negotiate. 

Ready to get started? Schedule a free consultation today.

The post External Scholarships for High School Seniors first appeared on Great College Advice.

Colleges and universities are schools, and they’re looking for students who excel in school. Your high school transcript is the single most important element of your college application. However, at the most selective colleges where every applicant has stellar academics, extracurricular activities become the critical factor that distinguishes you from equally qualified candidates. So, you’d need to base your strategy on both.

The grades vs extracurriculars balance is essential for families targeting the Ivy League and the top 20 colleges in the US. Here at Great College Advice, we advise that there are nuances. So, read further.

Which is more important for highly selective colleges: grades or extracurricular activities?

The narrative is that grades are unquestionably more important than extracurricular activities for college admissions; this includes Ivy League and top 20 schools. The logic behind the statement is:

Colleges are academic institutions, and they want students who demonstrate academic success. Grades are often considered the measurable aspect of demonstrated success.

As veteran college admissions expert Jamie Berger explains: “To get into a top 20 school, you have to have started being as accelerated as you can as early as possible and getting all A’s and taking as many APs (Advanced Placement classes) as possible.”

However, here’s where it gets nuanced for families targeting elite institutions. At the most selective colleges, virtually every applicant has excellent grades. In this context, extracurriculars become the deciding factor.
Berger, reflecting on a recent MIT early decision admit, puts it this way: “MIT gets the pick of the litter of kids with the highest achievements, grades, and scores. The only way they distinguish them from each other is extracurricular activities.”

Grades are your baseline requirement, or put in other words, ‘the price of admission to even be considered’. Extracurriculars are what differentiate you once you’ve cleared that academic bar.

The application process is far more complex than comparing grades and extracurriculars. Need a comprehensive overview? See our guide to top-tier college application tips to maximize your chances.

How do college admissions officers evaluate transcripts and GPA?

Your high school transcript carries more weight than any other element of your application. Admissions officers scrutinize it carefully. But not in the way many families expect.

The admissions committee focuses primarily on the five core academic subjects:

• Math
• English
• Science
• Social studies
• World languages.

Unless the candidate pursues an education in liberal arts, grades in courses like music, theater, art, and sports conditioning receive significantly less attention. These “extracurricular” courses may reflect dedication, but they don’t demonstrate academic readiness for college-level work.

Admissions officers might recalculate your GPA. Many strip away the weighted “bumps” that high schools award for honors or AP courses.

According to the Great College Advice Family Handbook: “The fact you got a B in that AP US History course but got a ‘bump’ in your GPA to make it ‘equal’ an A does not wipe away the incontrovertible fact that you did not get an A in AP US History.”

And finally, there’s another point of view: the class rank. The most selective universities think in percentiles rather than specific numbers. They’re asking: Is this student in the top 5%? Top 10%? Top 25%? Most elite schools hope to fill their classes primarily with students from the top 10% of their graduating class.

Is it better to take hard courses with lower grades or easier courses with high grades?

The honest answer:

As much as families might hope for a simple formula, oh well, “it depends.”

The ideal path is to take challenging courses AND earn high grades. The Great College Advice Family Handbook states it directly: “The higher the challenge and the higher the grade, the more seriously the most selective colleges will consider the applicant.”

But strategic course calibration matters. Jamie describes a common scenario: “If a student eked out an A-minus in AP Calculus AB and they hate math, should they take Calculus BC just because everyone else is? If they’re not applying in a STEM field, there’s no one answer. It depends on what they’re applying to.”

The principle: course rigor should align with your intended major and demonstrated strengths.

1. A student planning to study English literature doesn’t need to torture themselves with AP Physics.
2. But a student targeting engineering programs absolutely needs to demonstrate they can handle advanced math and science.

Each student is different. Sometimes it makes perfect sense for even a highly capable student to calibrate their course load based on specific goals, stress levels, and other commitments.

What role do extracurricular activities play in Ivy League admissions?

For the most selective colleges, extracurricular activities serve as a differentiator among the sea of academically qualified candidates.

The old model of the “well-rounded” student is outdated. Today’s elite colleges seek “well-lopsided” students. If you hear it for the first time, let’s explain that briefly:

Well-lopsided students have superior talents in one or two areas. Admissions officers at the most highly selective colleges like to see students who have well-defined interests in which they excel and exhibit leadership. They do not like to see students who flit from one activity to the next without really committing to any.

Your student’s activities should align with their intended major.

Jamie shares an example: “A student had all the great grades, all the great scores, but couldn’t get into Stanford’s aeronautics program because his activities didn’t match that major. The kids who get into aeronautics programs at the top schools have been little astronauts since middle school.”

The Common App provides space for ten activities, but quality trumps quantity. What matters is the depth of commitment and genuine achievement in each activity you list.

Can exceptional extracurricular achievements compensate for weaker grades?

In most cases, no. This is a hard truth that many families don’t want to hear.

The Great College Advice Family Handbook is unambiguous: “Grades and test scores usually trump extracurricular involvements in the application process. Only in rare instances will extracurricular achievement outweigh academic weaknesses.”

Think about it from the college’s perspective: they’re admitting you to an academic institution. They need confidence that you can handle the coursework. Admissions officers won’t skip over poor academic performance just because you’re a talented athlete or debater. They may admire your creativity and dedication, but if your grades suggest you’ll struggle with college-level academics, they’ll pass.

The exceptions are narrow: recruited athletes filling specific roster needs, students with truly extraordinary talents in priority areas for the institution, or those with compelling circumstances that explain academic inconsistencies. These represent a small minority of applicants.

For the vast majority of students, strong grades remain non-negotiable.

What makes an extracurricular activity stand out to admissions officers at elite colleges?

Depth of commitment and genuine achievement matter far more than the activity itself or how many activities you list.

Jamie illustrates it perfectly:

“I helped a kid get into very selective schools whose main activity was working at McDonald’s. He became a manager and went to national conferences. He went to the University of Michigan Ross School of Business. He didn’t have the illustrious academic camps. But his experience led him to what he wants to do for a living. And he did it. The colleges recognized this is someone who knows what they want, who’s done it, who stuck with it and excelled at it.”

The lesson: authenticity and achievement trump prestige. Whether you’re working at a fast-food restaurant or conducting research at a university lab, what matters is demonstrating genuine passion, sustained commitment, and measurable impact.

Jamie’s recent MIT admission illustrates the conventional path to distinction: “My student’s activities were in the very standard math and computer science areas. But his achievements were at a national finalist level, a national winner level. Invited to Stanford, invited to MIT, invited to the most selective programs.”

The common thread: whether traditional or unconventional, successful applicants show authentic engagement and genuine achievement. That’s far from a resume padded with superficial involvement in many activities.

The Great College Advice Family Handbook reinforces this: “Is there a certain number of activities that look good on the application? No. The number of activities is less important than the depth of the commitment.”

How do standardized test scores factor into the grades vs. extracurriculars equation?

Test scores occupy the second position in the academic hierarchy. The priority order at selective colleges typically follows this pattern:

Transcript (grades and course rigor) → Test scores → Teacher recommendations → Extracurricular activities

While many colleges adopted test-optional policies in 2020, elite institutions including MIT, Dartmouth, Harvard, Brown, and Cornell have returned to requiring standardized tests. Even at test-optional schools, strong scores provide another data point demonstrating fundamental math and English communication skills.

Remember that testing is merely one piece of information that admissions officers consider, and colleges know that test scores do not tell the student’s entire academic story. Test scores can also unlock merit scholarship opportunities at institutions that offer them. Though notably, many of the most selective colleges do not offer merit-based financial aid.

What should parents do to help their student be successful?

If you’re targeting the top 20 colleges, understand this hierarchy:

1. Academic excellence is the foundation.
2. Your high school transcript is the most important element of your application.
3. Test scores provide supporting evidence.
4. Letters of recommendation offer third-party validation of your academic abilities.
5. Extracurricular activities become your differentiator.

Or in a nutshell, depth beats breadth. “Well-lopsided” beats “well-rounded.” Authentic achievement beats resume padding.
As Jamie summarizes: “Every year I have several great kids who just lived their lives as kids. To get into a top 20 school, you have to have started being as accelerated as you can as early as possible.”

The families who succeed at elite admissions don’t choose between grades or extracurriculars; they strategically excel at both. Their dedicated college counselor has helped them understand how each element functions in the overall application, and they calibrated their approach accordingly.

Need help with the college admissions process?

The expert admissions counselors at Great College Advice can help with high school course selection to balance rigor with GPA. We also provide assistance in developing your extracurricular activities along with researching colleges, essay support and overseeing the college application process.

Contact us today for your complimentary consultation.

Since 2007, the expert team of college admissions consultants at Great College Advice has provided comprehensive guidance to thousands of students from across the United States and over 45 countries across the world. Great College Advice has offices in Colorado, New Jersey, Chicago, North Carolina and Massachusetts.  

In addition to our one-on-one counseling, Great College Advice extends its support through one of the most active and resource-rich Facebook Groups for college-bound students and their families: College Admissions Experts. With nearly 100,000 members—students, parents, and experienced counselors—this vibrant forum offers peer support and expert advice like no other. 

The post Grades vs. Extracurriculars: What Matters More? first appeared on Great College Advice.

The Colorado Free Application Days campaign is an initiative designed to inspire more Coloradans to continue their education. From Tuesday, Oct. 7 through Thursday, Oct. 9, 2025, all 32 public colleges and universities in Colorado and several private institutions will waive their application fees, making it free for anyone to submit an application. By waiving application fees—a common barrier to higher education—Colorado Free Application Days aims to improve access to further education and training, which is becoming increasingly critical in the state’s rapidly changing economy.

For more information, visit the following Colorado Department of Higher Education (CDHE) for more details, including the list of participating colleges and universities, here and here.

In 2024, there were over 65,000 applications received during the Colorado Free Application Days including almost 12,000 at CU-Boulder and over 4,300 at the University of Denver.

The CDHE also provides a lot of educational materials on its My Colorado Journey site. It includes resources for high school course selection, career exploration, college research , financial aid, and test preparation.

Best of luck to your student as they begin their senior year of high school and please reach out to the team at Great College Advice if we can help with their Colorado (and beyond) applications!

The post Colorado Free Application Days first appeared on Great College Advice.

The Boettcher Foundation awards undergraduate scholarships to Colorado’s best and brightest students. Their merit-based awards essentially guarantee a 4-year fully paid scholarship to any college or university in Colorado. The application process for this scholarship is very rigorous and the competition is steep. Annually, well over 1,000 students apply for the 50 available scholarships. According to the Foundation:

Our application review is a holistic selection process that evaluates applicants on four selection criteria – superior scholastic ability and intellectual curiosity; evidence of leadership and involvement; service to community and school; and outstanding character.

Typically, competitive applicants rank in the top 5% of their classes and have test scores that average 1388 on the SAT and 32 on the ACT (as a reminder, we are not requiring test scores for this year’s applicants.) It’s important to note these averages are precisely those; every year we have Scholars who score below and above those averages.

Though grades, coursework, and test scores are important, we know that numbers do not tell the whole story of a student’s unique abilities, lived experiences, or character. We also weigh the qualitative components of an application that include leadership, involvement, and service to community and school.

The application opens September 1 every year. Your high school counselor will be receiving updated information about the scholarship. Then, they are able to invite qualified students to apply so if you are interested make sure to connect with your counselor. To see if you might be a qualified applicant check out the Boettcher website.

Boettcher Scholars are an amazing community of students and citizens.

Great College Advice

The post Learn About the Boettcher Scholarship first appeared on Great College Advice.

Clients ask the team at Great College Advice repeatedly to explain the relationship between the financial aid and admissions offices to help them understand how financial need is factored into admissions decisions. Usually, these questions revolve around whether a college is “need-blind” or “need-aware.” So in this post, we’ll try to shed some light on how the admissions and financial aid offices work together. More importantly, we’ll provide some insight on the difference between a need-blind and need-aware college and how a college’s financial aid policy may impact whether you ultimately decide to apply there based on affordability.

Need-Blind Admission Policies and Enrollment  Management

Generally, the Admissions and Financial Aid offices are operated separately. But usually, the two are overseen by a Dean or Vice-President of Enrollment Management, or some such title. This should give you a clue that the two offices, while administratively independent, are two sides of the same coin.

Both are tasked with recruiting and then retaining students, providing just enough resources to keep the income flowing into the university. Tuition dollars, after all, are the lifeblood of any institution of higher education. Both offices have the responsibility to keep the dollars flowing in.

As prospective students apply to the university, they send their applications to the office of admissions, naturally. They apply for financial aid around the same time. Their applications for aid are processed by the Office of Financial Aid. So, it seems, in some ways that the two are separate, and most colleges like to help create the image that admissions decisions are completely separate from financial aid decisions.

Believe me, they are not.

Colleges That Offer Need-Blind vs Need-Aware Admission

Only one group of colleges can make any claim that the two decisions are separate: those practicing “need-blind” admissions. These colleges are generally very wealthy with large endowments, and their number is quite small. I’ll come back to this exception in a moment. But suffice it to say that the financial aid and admissions offices must work together if they are to ensure the continuity and adequacy of the institution’s income stream.

Both the admissions and financial aid offices start the process with an annual budget–an amount of money that can be used for financial aid.

Some of this budget is “hard” money (interest income from endowed scholarships). But the overwhelming majority of financial aid is given in the form of discounts on the price of tuition. Colleges may call these “grants” or “scholarships,” but internally colleges discuss their “discount rate”: the average discount off the tuition sticker price they will offer in a given year.

A large percentage of the financial aid budget goes to fund currently enrolled students. Most (but not all) colleges distribute their aid budgets to ensure that current students can continue their progress toward their degrees. Keep in mind that any individual’s financial need can change from year to year, or even from semester to semester. In order to retain students, perhaps 75% or more of the total financial aid budget goes to continuing students.

Does Need-Blind Admission Really Exist?

Admissions officers try to read your application without prejudice. But admissions officers have clues regarding a family’s ability to pay.  Most applications ask whether you plan to apply for financial aid. If you check “no,” then you are considered a full-pay student. In addition, colleges review family background. If the father is a surgeon and the mother an attorney (or a plumber and a waitress, respectively) admissions officers make some plausible assumptions about the ability to pay. All colleges subscribe to demographic analytic software packages which provide detailed income information on zip codes and even neighborhoods!

Once the admissions office has made a decision on which students to admit, the director will submit the entire list to the financial aid office for review. The financial aid office compares the aggregate financial need of the entire class with the amount of aid available for incoming freshmen. If the need far exceeds the dollars available, financial aid will kick the list back to admissions with the comment, “if we admit this class, we’ll go broke–go back to the drawing board.”

If this occurs, then the admissions office begins another review of applications, focusing on those kids who are “on the bubble,” or who are borderline admissions cases. Needy students on the borderline will be rejected, and replaced with students who didn’t quite make the cut–but who can pay full price. This process will continue until the admissions office can resubmit the list, and the financial aid office is satisfied that the institution will not over-commit itself.

Now let’s look at the small number of colleges who claim that their admissions process is “need-blind.” These colleges are wealthy. They not only have a high discount rate, but they also have endowment funds to draw upon if, for some reason, the admissions office ends up admitting way too many students with financial need. But “need-blind” does not mean “need-ignorant.”

Experienced admissions staffers know that they cannot admit a freshman class comprised solely of students who need a full tuition scholarship. They have to balance the full-pay students against the full-pay students. Even wealthy colleges have budgets that are not infinitely expandable. Admissions staff at “need-blind” colleges simply have a bit more wiggle room.

As I have said, admissions officers do have clues about a student’s ability to pay right on the application. In this sense, all college admissions processes are “need-aware.”

More evidence that need-blind admission is a myth

There is one other piece of evidence that helps us to understand that need-blind admission doesn’t really exist in ideal form. Colleges publish statistics about how many of their students receive different types of aid. We can track, for example, the percentage of the entering freshman class received need-based at Brown.

If Brown were truly and completely “need-blind” and not “need-aware,” we would expect that from year to year, there would be relatively big fluctuations in the amount of aid awarded. Some years, the class might be comprised of lots of kids who had high financial need but were otherwise remarkable applicants. In other years, maybe fewer remarkable, poor kids apply.

What the statistics tell us, however, is that Brown’s financial aid budget is fairly steady from year to year (discounting inflation). And–more important–the percentage of entering students receiving need-based financial aid is also fairly steady in the mid-40% range (for the Class of 2028 cohort 829 of 1719 enrolled students received need-based aid with the average award package totaling almost $69,000).

We do not see those expected fluctuations from year to year based on the quality of the applicants. Strangely, no matter who applies, the percentage of aid recipients stays roughly the same from year to year and even decade to decade.

Need-Blind vs Need-Aware in Admission–A Summary

So what conclusions can we draw from this relationship between admissions and financial aid?

• First, full-pay students have an admissions advantage over scholarship students at most universities. This fact is not one that we like to admit, but reality bites, sometimes.
• Second, students who need aid to afford college should consider applying to schools where they are at the top of the selectivity curve. You do not want to be “on the bubble,” because you either are less likely to be admitted or your aid package is likely to be less generous than at a college where you are one of the top recruits.

To be even more specific, if the middle 50% (25th – 75th percentile) score on the SAT for Lafayette College is between 1390 and 1490, the high-need student with a 1390 will be less desirable than the high-need student with a 1490. If you have a 1390 and need a generous aid package, look for colleges that have a middle 50% SAT range of 1250-1350, and your chances go up for both admission and financial aid.

Need help with the college admissions process? 

The team at Great College Advice has years of experience working with thousands of students as they navigate the college admissions process.  We can help you prepare, select, and apply to colleges to give you the best chance of being accepted to your top choices.  Not only can we help identify the right fit schools that also fit your college budget, but we will also help you with every other aspect of this process. Want to learn more?  Just contact us on this form and we’ll set up a no-cost, no-obligation meeting so we can learn more about you and discuss how we can help make the college admissions process more successful and less stressful. 

The post Financial Aid, Admissions, and “Need-Blind” Policies first appeared on Great College Advice.

If you’re interested, I also explained need-based financial aid in this post.

If you’d prefer to read my comments, you’ll find them below.

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I’m here right now on the campus of Dickinson College, which is in Carlisle, Pennsylvania, and I want to talk a little bit about financial aid. But I want to set the stage by saying Dickinson College is just a gorgeous place. I’m here just kind of outside the library in a little courtyard, the azaleas are in bloom, and students are packed in the library right now studying for finals.

Architecturally speaking, this campus is one of those harmonious campuses, all in gray brick. It’s just absolutely stunning. The landscaping is beautiful. Every facility I’ve gone into so far has been stupendous, superb.

But let’s talk about financial aid. And we’ll talk about merit aid because merit aid is the money you get because you’re a good student. And, at Dickinson, in order to get merit aid you need to be a very good student. Dickinson reserves only a very small portion of its financial aid budget for merit and awarded at the very top.

So, to give you some examples, I picked up this fact sheet outside the admissions office. I’m here on a Saturday; it’s not the best day to come, but it’s what I could do. So, I picked up this fact sheet and for financial aid, first of all, the tuition for 2024-2025 is just over $68,000, just for the tuition alone. About 2/3 of students receive some form of financial aid so 1/3 are paying $68,000, okay?

So, just so you put that in perspective. It also says that they do offer academic scholarships to almost 30% of the student body. Okay, so, 2/3% are paying full price and almost 30% are getting some sort of academic scholarship for their high school labor.

The other thing is that the middle 50% of scores – let’s just take the ACT score because it’s a little easier, sometimes, to remember. Out of 36, the mid 50% is between 30 and 33 in terms of their admitted students who submitted test scores. So, 25% of students who are admitted that submitted an ACT score have a 33 or above.

Now remember, I said almost 30% of students actually get merit-based financial aid. So, in other words – and these are rough numbers – in order to get a merit-based scholarship at Dickinson, you likely need to be in the 32-33 and above ACT range (or equivalent SAT) or have an impressive GPA or other talents.

I mean, that’s not based on your ability to pay, but if you are trying to reduce the price of college by maximizing other people’s money – and in this case, the college’s money – to get scholarships from the college, you need to roughly be in the top 25%.

Now, in several of the other liberal arts colleges that I’ve been visiting on this tour. If you’re in the top 50%, you’re likely to get some sort of merit-based financial aid, but not at Dickinson. You need to be closer to the top of the applicant pool to pull down merit-based aid.

So, it really helps to know who’s getting the money and to do the research and to look at the numbers as you apply. Because if you’re one of those students whose family believes and wants some sort of merit-based aid in order to pay for college, reduce the price. you’re not going to get it at Dickinson unless you are at the very top of their applicant pool – the top 25%.

Again, other colleges that’s not the case. The top 50% of the pool receives some sort of merit-based discount, but Dickinson, well, there’s a reason why there are such wonderful facilities here. So, it’s a great school, it’s beautiful.

I would recommend it. I think academically, it’s quite good, but if you’re looking for a bargain, it’s only going to be a bargain if you’re in the top 25%.

Great College Advice

Editor’s Note: This post has been updated for accuracy and comprehensiveness.   

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Educational Consultant
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I had a great visit here at Samford University, really beautiful, beautiful campus.  One of the things I learned about today was, it was a great lesson actually in the idea of discount rates, Samford University is actually cheaper, the sticker price of tuition is cheaper than a lot of other private universities and they use that as a huge selling point about why you ought to consider coming to Samford.  The interesting thing is that they really don’t discount tuition too much.  They do provide financial aid for some students, but fully one-third of the students who come here pay the full price of tuition.
Now at other universities, even the other ones I’ve been visiting in the south, the other private universities, they actually have a much higher tuition rate but they discount the tuition for a much larger percentage of the students.
So, when I talk to my clients, and I always talk about the fact that most students will not pay the sticker price when they are accepted to a private university, but parents will also be looking at that sticker price and doing comparison shopping, say between Samford and let’s say, Vanderbilt or even Birmingham Southern, and they say, “Whoa, the sticker price at those other places is so much more than it is at a place like Samford”.  Well, if you’re paying full price for tuition or if you’re planning to pay full price, then yes, Samford is a deal.  But if you are looking for financial aid, you may get less financial aid at a place like Samford than you would at a place that has a higher sticker price.
So that’s a really confusing reality of the way universities, which are businesses, price their product or their service.  So it was a fascinating discovery here.  I enjoyed my time very much and I think that they provide a really great educational product here but I thought it was really interesting to learn about their pricing structure.

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