FAFSA: Flaws in Financial-Aid Formula?

The New York Times: "Now that the latest FAFSA is out — it became available on Oct. 1 — millions of families are plugging in their numbers. The form is the first step to unlocking any potential federal financial aid, including grants, loans and work-study jobs, as well as aid from states and some colleges. But it also generates their expected family contribution, or E.F.C. — a number that can easily be misleading. It’s often higher than many households can afford ... The gap has grown wider not just because of the exponential rise in college prices, but also because of the E.F.C. formula itself."

"The formula, which stretches across 36 pages, often assumes families have far more income available to pay for college than they actually do, financial aid experts said, particularly in high-cost areas. The reason lies in its basic assumptions: that a family of four, for example, can subsist on less than $30,000, no matter where they live ... unless a student attends a college that promises to meet 100 percent of his or her need — and the vast majority do not — students and their families will probably pay more than what the FAFSA estimates."

"The formula also considers parents’ and students’ assets — and some allowances have actually become less generous over the years. Retirement savings and home equity are excluded from the federal formula, but the amount of other savings that parents can shield has plummeted over the past decade."

Pre-Med Majors: Think Outside the Sciences

US News: "When Pre-Meds are comparing and contrasting college majors, they should understand that medical schools admit students with undergraduate degrees in a wide array of fields. Premeds should feel free to focus on whatever subject fascinates them most, according to med school admissions officers." Dr. Demicha Rankin of Ohio State University College of Medicine, comments: "We have individuals who major in mathematics, linguistics, nutrition, public health, Spanish, zoology, social sciences, history, engineering (and) creative writing. Those are actually examples of college majors from our 2019 class."

"Adam Goodcoff, a med student currently based in Pittsburgh who has served as a student admissions team member, says a premed's undergraduate major is far less important than whether he or she found an interesting way to apply the knowledge gained through that major." He comments: "If they major in marketing and then use that skill to promote a free medical clinic in an underserved community, that is far more impressive than a student who majors in dance but does not connect that in any way to medicine."

"Goodcoff says he would be intrigued if he saw any of the following types of majors in a med school application, since it would indicate that the student might bring a valuable perspective: Music, writing or performing arts majors. Students with these majors are often eloquent communicators with the potential to forge close bonds with patients if they become doctors ... Business majors, especially finance. Knowledge gained in these types of majors is highly relevant to running a successful medical practice. Science majors in cutting-edge fields ... Undergraduate coursework in areas such as neuroscience or nanobioscience would prepare a med student to learn about rapidly evolving areas of medicine."

Tuition & Admission: Follow the Money

The Atlantic: "As admission rates have dropped, the cost of attendance has increased—a correlation seen at many highly selective schools. By 2025, the University of Chicago’s sticker price is predicted to pass the $100,000 mark, which would make it the first U.S. college where attendance costs six figures, according to a new analysis by The Hechinger Report, an education-news outlet. The analysis suggests at least a handful of other U.S. colleges will follow suit soon after Chicago hits that milestone, including California’s Harvey Mudd College, New York City’s Columbia University, and Texas’s Southern Methodist University. And after that, given the way American higher education has been going, it likely won’t be long before six-figure prices are common among selective colleges and universities."

"The University of Chicago’s sticker price is currently roughly $80,300. But as is the case across higher education, most of its students in reality pay far less than the sticker price. Students with a family income below $75,000 are paying roughly $5,200 on average to attend the university this year, The Hechinger Report’s analysis indicates (official data aren’t yet available). Even the wealthiest families—those that make at least $110,000—on average are paying just about half of the total attendance cost. Fewer than half—42 percent—of the university’s 6,300 or so undergraduates paid the sticker price in the 2016–17 school year, according to the most recent available net-cost data."

"The sticker price keeps growing because of increases to colleges’ operational costs. Elite colleges are spending more and more in their pursuit of prestige ... While the rising demand for fancy amenities could explain some of the increasing costs, personnel spending is, as The Atlantic contributor Amanda Ripley has reported, the biggest expenditure for many schools ... Esteemed professors are one asset that helps schools appeal to prospective students and climb in the rankings, as do smaller class sizes, extracurricular opportunities, and new buildings. Money spent on these things helps schools secure prestige, but it also raises costs."