When families begin exploring colleges with their teens, they are often surprised to find out that they need to learn what seems like a whole new language. I’ve been working in academia or college coaching for my entire career, so a big part of my role has always been to interpret all of the new terms until my clients are equally fluent.

One of the most urgent needs families have about this new language is to learn to understand all the things associated with admissions and financial aid. The majority of students applying to college will be seeking some kind of financial aid, so it’s important to be aware of how colleges and universities make decisions. The most common terms we need to define in this context are:

• Need-blind vs. need-aware admissions

• Need-based vs. merit-based financial aid

Need-Blind Vs. Need-Aware College Applications

Colleges review student applications based on either an awareness of financial aid needs or without taking it into consideration at all. In a need-blind process, the admissions officers evaluate every application on criteria that does not account for the student’s ability to pay full tuition. While this may seem ideal to the student who is worried that a need for financial aid will be an obstacle to acceptance, it still has potential for disappointment. Institutions have a finite amount of financial aid dollars. If their accepted students have a greater total need than their available funds can accommodate, more students will need to resort to student loans or competitive scholarships.

Colleges who determine admissions with full awareness of each applicant’s financial requirements are equipped to accept a balanced incoming class of full tuition payers and aid recipients. While there’s a risk that qualified students who need financial aid after all resources have been allocated will get turned down, this may be psychologically easier to handle than getting accepted to an unaffordable school.

In actuality, most admissions officers are not biased against students in need of financial aid. It’s a fact of life that college is expensive and not all families have the means to pay full tuition out of pocket. Schools are generally seeking the students who are most likely to graduate successfully, and financial aid is an excellent resource for attracting them. Always do your research on the financial aid and admissions practices of the schools at the top of your list. Also, visit the financial aid office during your tours to make sure you understand their policies.

Need-Based Aid Vs. Merit-Based Aid

The financial aid that a student will actually be awarded may be need-based, merit-based, or a mix. Need-based aid is entirely associated with the family’s ability to pay tuition. It does not account for the student’s grades, activities, or test scores. Schools will use the student’s FAFSA to determine the family’s financial profile, and they will offer an aid package to offset the costs of tuition and housing. Students and their parents will need to complete the FAFSA for every year that they are applying for financial aid. 

Merit-based financial aid does not take need into account at all. These resources are not provided out of federal dollars, but rather by the institution itself or private sources. Merit-based aid awards are typically referred to as grants or scholarships. 

Many schools require a CSS Profile, which helps them determine how to allocate non-federal aid. Other colleges have standing scholarships that are given to every student who meets certain criteria. Some examples of this are percentage or dollar scholarships based on class rank, GPA, test scores, or other academic excellence. These merit-based scholarships almost always have maintenance requirements for students to keep them for the length of their college career.

Merit-based aid is also available in the form of athletic or performance scholarships. There are also endowment scholarships that students can apply for. Sometimes, these scholarships require proof of need, residence in a certain location, pursuit of a specific major, or demographic markers. These awards can be competitive, but they are determined by the school rather than by outside organizations. They may be one-time awards, long-term without conditions, or conditionally renewable.

Competitive scholarships from outside sources are not factored into the school’s financial aid package. If a student earns scholarships that exceed their total financial need for tuition, fees, housing, and books, then need-based awards will be reduced to prevent excess funding.

Learning the Language of College Applications

There really is so much for every family to learn when planning for college. Before you get overwhelmed and worry that the cost of college is unattainable, connect with me. I walk students and their families through this strange new world every day, and I assure you that we can chart an admissions and aid plan that works for you. Your first 30-minute strategy session is complimentary, so we can get many of your initial questions answered right away!