|
Statistics – Don't Be Fooled
Colleges and universities provide statistics to look attractive. Not unexpectedly,
the statistics are sometimes stretched to their limit so understanding their
true meaning can be difficult. Work with your parents to understand “bragging” statistics
provided by college and universities.
For instance, beware of statistics and statements such as, “85%
of our students receive financial aid” or “95% of student
financial need is met for those students receiving financial aid.” The
financial aid comprising these large percentages may only include minor
amounts of free money (scholarships and grants) with the bulk of aid
being loans. Make sure the financial aid offered by colleges
and universities is not composed entirely of loans. Ask the question
to college admission officers or financial aid officers, “Typically,
what percentage of financial aid offered to students is scholarships
and grants?” The answer to this question may also be found
by researching information on the internet.
Example: Let’s say University A, B, and C publicize the
same statistics regarding financial aid:
- “90% of our students receive financial aid.”
- “The average annual financial aid package received
by students is $25,000.”
Undoubtedly, these numbers look very attractive to high school students
and their parents, however, the impacts to family finances are quite
different for each. While these numbers may be accurate, below
are details revealing the true nature of each university’s financial
aid:
University A: The average financial aid package
received by 90% of students each year consists of $25,000 in loans.
University B: The average financial aid package
received by 90% of students each year consists of a mix of approximately
50% scholarships and 50% loans ($12,500 in scholarships and $12,500
in loans).
University C: The average financial aid package
received by 90% of students each year consists of 80% scholarships
and grants, with the remainder consisting of Federal Work Study and
loans ($20,000 in scholarships, $2,000 for working an on-campus job,
and $3,000 in loans).
All three of these universities present identical statistics, but
University C is the most attractive because 80% of their financial
aid package is free money. Take the time to research what “Financial
Aid” really means to each college or university, especially the
colleges that accept you for admission.
Remember, financial aid includes:
1. Scholarships
and grants (free
money),
2. Federal
Work Study
(on-campus job), and
3. Loans
(money you must repay).
Receiving substantial financial aid from a college or university could
mean you are only being offered huge loans and huge future debt. Ask
the right questions to college financial aid officers to find the true
meaning behind “financial aid.” |
