Question

A recent study found that the overall rate at which colleges "capture" higher Pell grant awards - that is how much of a student's Pell grant the college keeps instead of using to reduce a student's tuition - is low overall at 12%. But universities that give little institutional aid have much lower capture rates than universities that give out lots of institutional aid. Explain why this happens.

Answer 1

Ans. You have to read a list of grants,Scholarships,Work-study awards,and loans in order to understand what you owe.many surprised the amount they are expected to contribute is still quite high.most student do not pay the sticker price for college.You can compare sticker price for tuition ,room and board was $20,090.But in state students actually paid$14210.The difference was covered by financial aid.

Financial award depends on income.The more you have, financial award will be smaller but they play a smaller role in determining your contribution.

University working with more transparency.Always study tax information on the FAFSA.Adjusted Gross income which includes more than wages you earned.It can also include alimony,Social Security and rental property income.   Gary Steinke,president of the lowa association of independent colleges and universities said that since regents began emphasizing resident enrollment as a factor in funding, lowa began aggressively recruiting lowa students by any means possible.A prevailing method has been financial aid.Some of the aid packages he heard about have bordered on the unbelievable .Steinke says citing one family he spoke to whose child ended up receiving more aid dollars than necessary to attend lowa,and actually ended up making money by enrolling. The impact of lowa's increased recruitment on private college appears mixed.the number of lowan freshman at central college and Morningside college has dropped 31 and 9 percent.At Coe College the number of resident freshmen has remained steady.And Drake University and Luther college have actually increased their resident enrollment by 12 and 4 percent.Putnam says the states independent colleges were placed at an immense economic disadvantages.