Fail State - documentary about Higher Education for-profit schools

[cookderosa]

Hitting on Sanantone's point- it's sooo soooo soooo tricky.  I am 100% on the ball about this stuff, but watching my 3 sons fill out FAFSA and get financial aid packages changes you from thinking that everyone is stupid and not paying attention to understanding how people get duped.

Colleges pitch a "Financial Aid Package" but sometimes students don't realize they are taking out loans.  Colleges do NOT do a great job of separating, and that's not even at the for-profits (I haven't seen a Financial Aid Package from one, but would be interested to).  Anyway, the roll in tuition, fees, LIVING EXPENSES, etc.  and make it "look like" you need X for the school year - sign here.  In order to line item out the loans, they have to rewrite the entire package using just grants, institutional scholarships, work-study, etc.  I watched a financial aid officer roll her eyes at the boy and his mom in front of us because he was asking questions.  (at a community college) it's hard to pinpoint because it's transparent (everything is written in clear English) but there is just something in the process that makes it too easy for kids (and adults) to over-borrow.  I realize fees can be expensive (they are here  in NC anyway) but it's just so slimy.  I think it's the word they use:  "AWARD" like it's a gift - a scholarship- a present. No, an award is none of those things, it's a LOAN.  I honestly don't think it's obvious to everyone.

Edit, I found on Northeastern's website a really good breakdown of the "award" letter as well as a sample. Not sure how to screenshot- but here's the link - it's worth checking out. https://studentfinance.northeastern.edu/...our-award/

I agree.  Even back in the late 80's when I went to college, it was confusing about which part is a loan.  These should be completely separate.  You should get 1 set of paperwork that shows the total cost, and subtracting loans/grants/scholarships, and then a 2nd set of paperwork that shows the loan that you're taking out, IF you choose to do so.  It should not all be together.  I think they try to trick kids (and their parents) into taking out loans.

I agree- not only should the paperwork be separate but I don't like colleges calculating in costs beyond what they are going to bill you for. It's really bad form to write in that my son's cost of attendance includes $1,400 in textbooks. Uh, no, we're not paying $1,400 for textbooks. Someone might be, but we're not lol and EVEN IF we buy an overpriced NEW textbook with a code for a zillion dollars, it won't be part of a 20 year loan.