Financial Aid at Reed
Receiving Aid from Reed
If you have filed the FAFSA and the PROFILE forms with the appropriate processors by the indicated deadlines, you will be notified of a financial aid decision at the same time you receive an admission decision.
The financial aid award included with an admission decision is estimated. To finalize eligibility for all financial aid funds, you must use the FAFSA IRS Data Retrieval Tool to update your FAFSA and you must submit copies of the student and parent 2013 IRS income tax returns, including all schedules and W-2 and 1099 statements, as soon as possible, but no later than April 15, 2014. You must also complete and submit a verification worksheet. The verification worksheet confirms the size of your household and number of family members attending college, as well as the amount of the student and parent 2013 untaxed income. Reed participates in the College Board’s IDOC service. All documentation should be submitted through IDOC. The award will be revised if the information contained in the PROFILE and FAFSA differs from the information contained in your family’s 2013 IRS income tax returns and verification worksheet.
The financial aid package represents the difference between the total cost of attending Reed and the family’s expected contribution. Generally, a Reed financial aid package consists of self-help (loan and employment), in addition to institutional grant funds. The components of a financial aid package are described in the following sections. Whether you receive all or some of these components will depend on the financial information provided in the application for financial aid.
- Reed Grants: The primary source of grant assistance at Reed is the college itself. Reed budgeted approximately $21.6 million in grant funds for the 2013-14 academic year, with individual awards ranging from about $1,000 to $56,800.
- Federal Pell Grants: These grants, awarded by the federal government, are based primarily on parent and student income, and determined financial need. Pell grants range up to a maximum of $5,645 for the 2013-14 academic year.
- Federal Supplemental Educational Opportunity Grants: These grants, also known as SEOGs, are federal funds disbursed by Reed to Federal Pell Grant recipients who demonstrate exceptional financial need. SEOGs at Reed are typically $750 for an academic year.
Financial aid packages at Reed usually include a student loan. A student loan may be a recommended Direct Loan, a Federal Perkins Loan, or a combination of both. The amount in student loans the college usually recommends for first-year students is $2,500. This recommended loan amount increases $1,000 annually to $3,500 for sophomores, $4,500 for juniors, and $5,500 for seniors. If a student receives an outside scholarship other than a state grant or federal funds, the recommended loans are the first type of aid reduced.
- William D. Ford Federal Direct Loans: There are two types of Direct Loans: subsidized and unsubsidized. To be eligible for an interest-subsidized loan, your student must demonstrate financial need. Most Direct Loans included in a need-based financial aid package are subsidized. The federal government pays the interest on subsidized loans while the student is enrolled. The federal government does not pay the interest on unsubsidized loans. Monthly repayment is usually made over a period of 10 years and begins six months after graduation or when the student ceases to be enrolled at least half time. The interest on an unsubsidized loan begins to accrue as soon as the loan is borrowed; however, the student may request a deferment of these interest payments while in school.
- Federal Perkins Loans: Federal Perkins Loans bear a low interest rate of 5 percent and are distributed by the college. There is no processing fee related to this loan. Interest accrual and repayment begins nine months after graduation or after a student ceases to be enrolled at least half time, and cannot exceed 10 years. Due to the limited availability of Federal Perkins Loans funds, recipients of these loans at Reed are usually students who demonstrate the greatest financial need.
Work is available both on campus and off campus for Reed students. Both on- and off-campus opportunities include regular student employment and federal work-study (FWS) employment. Regular student employment is funded by the college. The federal work-study program is funded primarily by the federal government. The employment portion of a financial aid award is usually $1,500 per year. Students typically work about five to 10 hours per week. The college recommends that first-year and transfer students work fewer hours their first semester, until they become accustomed to the time required for academic programs.
Students must reapply for financial aid each year so that a financial aid package may be adjusted to meet a family’s changing need. To receive maximum consideration, the PROFILE and FAFSA must be submitted to their respective processors by April 1. Student and parent IRS tax returns, including all schedules and W-2 and 1099 statements, and a verification worksheet must be submitted to IDOC no later than April 15.
Resources not based on need
Other loans, employment opportunities, or outside scholarships may be available to a student regardless of the family’s eligibility for financial aid. Some of these are described below.
- Direct PLUS Loans for Parents: A parent of a dependent undergraduate student (if the parent has good credit) may apply for a Direct PLUS Loan and be eligible for a maximum of the cost of attendance minus the amount of financial aid provided to the student (including grants, loans, work, and other outside resources or awards). The annual interest rate, 6.41 percent, and an origination fee of 4 percent is assessed on this loan. Repayment may begin up to 60 days after the loan is fully disbursed to the parent borrower. There is no federal interest subsidy. At the request of the parent borrower, repayment can be deferred for the Direct PLUS Loan while the student is in school.
- Employment: More than half of all Reed students work at least part of the school year. Almost all academic and administrative offices employ students, and the career services office is available to provide information on part-time work. Career services staff members work individually with students, advising them on a broad range of employment opportunities available during the academic year and summer months.
- Outside scholarships: A student may be eligible for grant funds through various private agencies and corporations. Local civic, religious, and fraternal groups, as well as various national organizations and unions, sponsor scholarships that are not based on need. Check with the college guidance counselor about the availability of scholarships from private companies and agencies. Your local library also may provide useful information on this subject. Several websites provide free scholarship searches: try www.fastweb.com and www.finaid.org. Reed also has information about outside scholarships at www.reed.edu/outside_scholarships.html.
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