More money saved equals less funding?

[GwenWoods]

I'm new to the way graduate funding works and I'm hoping someone can explain what universities take into account when deciding how to award scholarships.

Right now I'm looking at Columbia, which states their scholarships are merit-based and need-based. So, my question is, let's say I have $30,000 saved, will this mean I get less aid because I've saved up more money? Or will they try and supply as much aid as they can to bring me closer to the $76,000 tuition+living expenses? I know for undergraduate scholarships it was better to be lower class than middle class in terms of scholarships.

I have a 3.7 GPA as well—does anyone have any idea whether this is considered good enough for scholarships amounting over $15k?

Thanks!

[Nerd_For_Life]

The merit-based scholarships won't look at how much money you have going in. The needs based ones will look at both and they are mindful of how much tuition and living expenses cost. Basically needs based ones work like this: All else being equal, if you have $30,000 in the bank and another person has -$20,000 (student loans for those of us who have had to borrow to pay for school and would dream of being able to have $30,000 in the bank), then the person who is more in need of the funding would receive the award.

Again, all else being equal the person with more need would receive the needs based scholarship over you, but you're on the same playing field if it's merit only.

[TakeruK]

I'm not exactly sure how Columbia defines "needs-based" funding for graduate students, especially since it seems like you are applying to an unfunded program, so it might work like undergrad scholarships (i.e. how you and nicolemc defined it).

However, when I come across "needs-based" funding for graduate students, it's either a yes or no, not a measure of "how much need". But this is for funded programs where there is a guaranteed minimum amount. For example, my current school has a general needs-based "Graduate Award" which is given to anyone whose TA and RA package is below the minimum funding level (i.e. there was a need) and the award fills in the gap. There is no consideration given to how much you've saved up, unlike Canada Student Loans, or other undergrad awards, for example. Also, this is a truly "need-based" award because the only criteria that determines whether you get money is need -- there is no "all else being equal" since there is no other criteria (I think the assumption is that if you are accepted to the school, then you meet their minimum criteria for awards). In addition, if you end up with another award before you start (e.g. an internal merit based scholarship), then your need is less so they reduce an amount equal to your merit based award from your needs-based award.

Just giving another example of how it might work!

[GwenWoods]

Hi Nicole,

Thanks! I've always wondered about that. Right now I'm trying to save as much money as possible, but I find that system isn't perfect. If I just frivolously spent my money instead of trying to save it, I'd get more aid because I'm more in need? Obviously not something I'd actually do, but it's a little discouraging that just because I've sacrificed a bunch of other things to be able to try and save as much as I can, I'm then going to get less financial assistance.

Their website says this—The Graduate School of Journalism offers approximately $4.1 million annually in fellowships and scholarships to students

who demonstrate high academic achievement, financial need, and exceptional promise for leading careers in journalism. In conjunction with the University’s Student Financial Planning Office, we work with each student to ease the cost of attendance through a combination of scholarships and need-based programs, including grants and federal and private loans.

So hopefully they consider a number of things? Having to take out another $35K in loans would prevent me from going if I was accepted anyway.

Thanks again!

[GwenWoods]

Hi TakeruK,

Seems like we're all Canadians! That's kind of how I understood it—Columbia says they have 4.1 million available in aid money, and that 65% of students get some form of aid, with the average amount being $15K. I noticed someone the other day said they had received a scholarship amounting to $37K from the J-School, and I was trying to figure out what criteria it would take to make that possible.

[Nerd_For_Life]

One thing they will likely note is that even though you have saved money you are still in financial need because you don't have the funds to cover all of your expenses. I know the frustration but think of it as: If you have $30,000 and they give you $40,000 and another person has $0 and they get $70,000 you are both in the exact same place. The reason another person who is trying to pay for an MA of PhD has fewer funds is likely not because they are frivolous but because they face barriers (as many of us do to some degree or another). If you both end up being able to go to school and not take on debt, that's a good thing.

Also, sometimes schools tie TA or RA positions to their funding so it's possible that another person gets more funding than you (their cheque is bigger than yours) there's a good chance that they are having to work for that money by doing TA and RA hours so it's not simply a hand out.

[ANDS!]

I doubt they are going to look at your bank account. They are going to look at what you "earned". It would be stunningly unfair to measure someones need based on how disciplined they were with their money. It is easier, and less objective (but still a bit faulty) to measure need based on what you supposedly make in a year (and I say they because Columbia depends on the FAFSA just like every other institution).

[GwenWoods]

Ah that makes sense. I'm definitely not saying I should get the full amount covered, I was just wondering if they'll try to do as much as then can to make it so you don't have to take on too much debt. As in, I was worried that if they saw you had 30K, they'd think 40K in debt would be acceptable, and give all the money to someone who had less saved. I'm just worried about taking on more than 20K in debt.

And basing it off income earned is good. I'm unfamiliar with the FAFSA, but I'll have to fill one out in a few months.

Thanks for all the help!

[ladyling]

FAFSA forms require you to submit information about your savings, and I assume other need-based scholarships ask the same sorts of questions. The point is not to "punish" you for discipline, but to get an accurate sense of how much you are can contribute to your tuition. Education, after all, is exactly the type of thing people save for. Money in retirement accounts (IRA, 401k) are not counted toward your assets for the FAFSA to my knowledge, so those sorts of savings won't be a problem for you. Maybe you were saving for a house, and I get how it would be frustrating to spend that money on your education instead. But the thing is, if you have substantial savings, you really can afford to spend that money on your education, and plenty of other people can't. Money gives you choices, and higher education is a choice.

But, with a 3.7 undergrad GPA and merit scholarships/fellowships available, you may very well not have to. There are also outside fellowships you can apply for, and of course, there are almost certainly other excellent programs in places where the cost of living is not quite so high. One potential advantage for you at a place like Columbia is that most US universities are required to provide international students with enough funding to cover cost of living in order to meet visa sponsorship commitments. Talk to current students in the program you're applying to and ask what funding is like. It also probably says something on the website. MA programs are often unfunded, but the same may not be true of MS programs, or of your program in particular.

[abdefghijkl]

Watch out here folks. Many funding packages and FAFSA loans are restricted to US citizens! I moved between the two systems (Canada to the US) and was able to take out US student loans only because I had dual citizenship. The feds want to make sure they can track you down later to get back that money. Check out the specifics here: http://www.fafsa.ed.gov/fotw1213/help/fotw14a.htm

[GwenWoods]

Sorry, I didn't mean FAFSA, but an international scholarship form the school has. I realize loans have to come from the country of which you are a citizen, not where you study.