During the boom years, the nation's college financial aid officers used to swap tales about trivial, selfish appeals for more aid that students and parents occasionally filed, like the father who wanted more grants for his daughter because he'd just spent $25,000 on another daughter's wedding and the mother who demanded more scholarships for her child so the mother could spend her savings on a cruise.
Not this year. Colleges say they are being flooded with all-too-serious appeals for additional aid. And many colleges say they are scraping together extra grants or scholarships for the vast majority of appealers who can document a decline in income or an increase in expenses. But financial aid offices warn anyone with hidden income not to assume that appeals are risk-free: Appealers whose tax and other documents show that they falsified aid applications can lose all their aid and be fined or even sent to prison.
Mary Smith-Hammond, who retired from her job as a financial aid officer for the University of California-Berkeley in 2007, was called back this year to help with a big jump in appeals. She estimates that she has approved more aid for about 85 percent of the appeals she has processed so far, up from a historical average of about 50 percent. "The unemployment rate wasn't as high back then. And we had different standards," she says. Smith-Hammond, who long ago denied the appeal from the mother who wanted to save her money for a cruise, says she is even approving appeals for students whose parents last year reported incomes of about $400,000 but this year are collecting unemployment insurance. "Their stocks are gone, their 401(k) is gone. They may only keep their house for another year," she says. Some have seen their industries get wiped out, reducing the chances they'll find another high-paying job. "I have not seen an appeal that was frivolous" yet this year, Smith-Hammond says.
Normally, colleges award financial aid for each academic year based on a family's financial situation in the previous year, as reported by the family on the Free Application for Federal Student Aid. But the U.S. Department of Education this spring asked colleges to help those whose parents have lost their jobs or suffered a pay cut in 2009 by estimating a family's need for aid based on this year's lower income instead. Aid officers are also taking into account expenses that aren't reported on the FAFSA, such as medical bills.
Students or parents who feel they have a real need for extra aid will have more luck if they follow these Dos and Don't's suggested by Smith-Hammond and several other veteran aid officers.