"What am I going do?" pled the frantic voice over the phone. "I really

want to return to college but HOW am I going to pay for it? Can they take

away all the money they gave me my freshman year?" This frantic student had

just received her financial aid award letter for her sophomore year at an

out-of-state public university.

This time around all she was given was a loan. Her freshman year she had

received quite a bit of free money. Unfortunately, this family hadn't taken

the time to identify each award. Sure it was "free" money, but was the

free money based on merit or need and could she receive it again?

If it was based on merit, was it renewable - meaning she could receive it for

her freshman, sophomore, junior, and senior years? If it was renewable money,

what did she have to do to receive the money? Was it based on a GPA? Was it

based on a number of credit hours? Or was it based on a combination of these

two? Or is there something else entirely involved in remaining eligible?

If the money wasn't merit money, then it was need-based money. This kind of

free money was based on her family's income. As the family's income

increases, the student's need-based financial aid will decrease. If the

number of students in college decreases, then the student's need-based aid

will decrease as well. Any need-based aid cannot be depended upon for future

years.

Not identifying what money she would be able to "keep" for the remaining

three years of college led this family to make a very short term decision for

a long term need. Sure she can return to this university but the entire cost

will be covered by loans which have to be repaid at some point.

And remember, student loans cannot be discharged through bankruptcy. Her

family will also have to find parent loans and additional money in their

budget to pay these costs.

The explanation given for this choice was "But this college is such a great

match for me." Matching needs to include "paying for college". Just

like understanding your job's compensation, you need to completely

understand what money the college is offering and the limitations of each

award.

As for this student, the family is still struggling to decide what to do. The

cost, without a lot of help, is not doable. But transferring brings its own

set of struggles.