Operation “Soaring Eagle” : The Financial Permeability

Link to Operation “Soaring Eagle” post index – Link to previous post – Link to next post

This is in continuation of the introduction I gave in my previous post. If you’re reading this – the second post of the series – it should mean that you and your family have decided that you are going to take a shot at applying to some US universities.

That’s great, but as I mentioned in my previous post, money is often a deciding factor for several families. The fact is that a 4 year undergraduate course at a good US university can cost anything from next to nothing to 80 lakh rupees!

These figures are only indicative and you need to double-check the exact amount with the colleges you plan to apply to. The same applies for details regarding some of the colleges listed above. Please check with the college website.

There is a reason why such disparity exists between colleges. You’ve got 2 main kinds of universities in the US. There are public universities which are essentially run by federal state government. These institutes often receive a lot of funding from the government. Then you’ve got private universities, which are not owned or managed by governments, but instead, receive funding from private sources.

As of such, there is little difference in the quality of education offered at the two kinds of universities. But however, there is one major advantage some private universities have, but first let me answer some more questions.

What is Financial Aid?

This is possibly a question that might’ve cropped up in your mind at some point or another. The word is often found littered on online student forums and college admissions office websites. Essentially it refers to the money that a student may receive from a college or a federal source to meet the expenses of tuition, boarding, personal expenses etc.

In some colleges, you might receive a guarantee regarding financial aid for all the 4-5 years you’ll be spending there. Others might not be so generous – they will review your application for aid on an yearly basis, with no guarantee that if you get financial aid in one year, you’ll be getting it in the next year as well. Remember to check up on this on the websites of the universities you plan to apply to.

Also remember, your financial aid is not like a loan – you don’t need to pay it back once you’re done with college.

Great! Does every college offer financial aid?

Sadly, no. This is where I need to point out an important distinction between public and private universities. Because a public university gets its funding from state resources, it is usually only allowed to disburse this amount among students from within the US. It makes sense, because it is essentially US taxpayers’ money which makes up the financial aid being offered at public universities. As a direct consequence, international students receive little to no aid from these universities.

However, there are several private universities which are more than willing to fund the education of international students, as they have no such obligations to provide financial aid only to US students. As a result, you will probably find admissions more competitive at these institutes – not just because of the quality of education, but also the quantity of financial aid on offer.

What’s the difference between need-blind and need-based financial aid?

It is a common misconception that the terms need-blind and need-based refer directly to the aid you might receive. Instead, they refer to the admissions procedure as a whole.

In an ideal situation i.e. a university offering need-blind financial aid, there is no connection between the Office of Undergraduate Admissions and the Office of Financial Aid. Basically, if you are admitted based on your application, you will receive all the financial aid you are able to demonstrate a requirement for. In short, the amount of money you need does not affect your chances of gaining admissions.

However, in the case of need-based financial aid, the two offices are joined at the hip. Essentially, any application is reviewed in a joint manner by both offices. Consider that the Office of Admissions finds two equally qualified candidates, A and B. Now A comes from a well-off family, is able to pay for college and hasn’t applied for financial aid. And B comes from a poor family in desperate need of financial aid. In a need-based system, A has a higher chance of gaining admission than B does.

In that case, which colleges should I bother applying to?

Even if your family has the money and is willing to spend it, don’t skip this question and go to the next post, which will be out soon. Read on.

We’ve ruled out most of the public universities already for financial aid. So you’ve got some private universities left now. Here are a couple of situations you might find yourself in.

A) You need financial aid badly to study in the US

In this case, apply to all those universities which offer financial aid – need-based on need-blind. Basically, here you’ll have an equal footing with everyone else wherever financial aid is need-blind. You may suffer a disadvantage when it comes to need-based admissions, but it’s a risk you’ll simply have to take. Don’t bother applying to the public universities which don’t offer financial aid, unless you are willing to take a risk with a scholarship. I’ll talk about this in detail later in the post.

B) You are halfway – financial aid is appreciated, but not 100% necessary

In this case, take some chances. Of course, it goes without saying that you should apply to all universities with need-blind admissions. However, then you have room to experiment a bit. Got your eye on a particular university which offers need-based financial aid, but unsure about your chances of gaining admission? Don’t apply for financial aid, there, as this might boost your chances of getting in. Targeting some some really good public university. Apply anyway, even if you won’t get any assistance from them. Basically you need to keep a healthy mix of colleges so that your options remain open.

C) You don’t need financial aid

Apply for financial aid in the need-blind colleges. Don’t apply for it in need-based colleges so that you can maximise your chances of getting in. Also, feel free to apply to public universities as well, as you have the money to go through with this.

Which colleges will offer financial aid to me?

For the purposes of this question, I will assume that you are an international student seeking admissions in an engineering institute in the US. In that case, here are some of the major engineering colleges that should definitely be on your list.

Colleges offering Need-Blind Financial Aid

• Massachusetts Institute of Technology (MIT)
• Harvard College
• Princeton University
• Cornell University
• Amherst College
• Dartmouth College

Colleges offering Need-Based Financial Aid

• Stanford University
• California Institute of Technology (CalTech)

How much financial aid can I expect to receive?

There is one primary factor which helps determine how much financial aid you can expect – your parents’ income tax returns. The reason why this is important is because it allows the Office of Financial Aid to determine whether your family actually needs financial aid. So, essentially, someone with Dad working in the public sector, fast approaching his retirement and whose Mom is a housewife is more likely to get financial aid than a kid who’s parents both have high-paying jobs in multi-national corporations. They use this, and a number of other factors, such as property owned etc. to determine how much aid you’ll get.

What other options do I have?

Well, if you really want to apply to US universities where you will not be eligible for financial aid, consider the following.

Private Scholarships

These are private organisations which are willing to sponsor your education. They will usually review your academic performance till date, and will perhaps look into your standardised testing scores as well. You may be required to attend certain events organised by our sponsor, but this is somewhat of a small price to pay for what you’re getting.

Additionally, there are scholarship programmes which may become available to you if you perform will in your first two semesters at college. This is again performance-based scholarship, but is only available after you complete an year of college.

Student Loans

Although not a good long-term solution, you can get student loans for meeting some expenses such as boarding and personal items if you wish. The interest rates on these loans are usually lower than average. I haven’t done much research on this, so I don’t really have much to tell either. But remember that unlike financial aid, you are required to pay back these loans, which means that you’ll need to get a job in the US and work for a while as well. This might translate into you getting hooked to the place and deciding to never return to you country of origin.

---

The reason why this post precedes ones answering questions such as “Which major should I choose?” and “Which colleges should I apply to?” is because the finances of studying abroad can often make or break plans to do so. So its essential that you don’t get yourself involved in something you might not have the means to see through till the very end. In either case, whether you have money or not, you should definitely consider applying to universities offering need-blind financial aid.

 

Also, this post has been released before the one regarding which major to choose because for many people, finances are a bigger deciding factor on where to apply than their major of choice. So, this post should’ve helped you decide which colleges you should keep in mind while hunting around, and which ones you shouldn’t even give a second glance.

The next post will be regarding which major to choose.

Link to Operation “Soaring Eagle” post index - Link to previous post - Link to next post