Karen Cooper
Associate Dean and Director of Financial Aid, Stanford University
Can we expect the same amount of financial aid each year?
In short, maybe. To answer this question, it’s important to review the two primary types of financial aid: need-based and merit-based.
Aid awarded to students based on financial need is considered need-based. Major factors that impact this type of aid include the cost of attendance, which may increase from year to year, along with a family’s income, assets, household size, and number of family members in college. A student could qualify for additional need-based aid during a later year of college if the cost of attendance rises or if one of these major factors changes, like a drop in household income; they may qualify for less if there is a significant increase to family income or fewer siblings in college.
However, some institutions may not increase the amount of need-based aid from year to year, despite a student’s increased financial need. This is known as level-funding and allows the institution to know exactly how much financial aid a student will receive over the course of their degree. It is important to ask an institution before the student enrolls whether or not need-based financial aid increases from year to year.
Merit-based aid is awarded to students based on a range of achievements in high school that normally fall under academics, athletics, and the arts. If your child is awarded merit-based aid — usually in the form of scholarships — there could be opportunities to renew it. Renewable scholarships typically require students to meet certain criteria every year, like a minimum GPA.
Since policies vary between colleges, especially for institutional assistance, you should contact the financial aid office with specific questions.
