Higher education is a valuable investment. Reed College believes that students and their families, as beneficiaries of that investment, have the primary responsibility for paying college costs. The college assumes that students and their families will contribute to the fullest extent possible from income and assets, but recognizes that a family’s resources may be insufficient to fully fund the cost of a Reed education. Reed is committed, therefore, to maintaining an economically diverse student body by providing a comprehensive, need-based financial aid program that seeks to bring the college’s education opportunities within reach of all qualified students. All of Reed College’s financial aid programs are need-based; the college does not have any merit-based aid programs.
Financial aid awards are based upon the college’s analysis of a student’s financial need. The family contribution—that is, the amount the student’s family can contribute toward educational expenses—is determined using institutional and federal need analysis procedures to review information the student submits on the College Scholarship Service (CSS) PROFILE and the Free Application for Federal Student Aid (FAFSA), as well as signed copies of student and parent IRS income tax returns, including all schedules, W-2 statements, and 1099 forms. Eligibility for financial aid is determined by subtracting the student’s expected family contribution from the total cost of attendance at Reed. The formula used to calculate the expected family contribution is nationally standardized to allow for similar family contributions in similar circumstances, while also accounting for some factors that might be unique to a particular family. Because the formula is standardized, modifications might be necessary to fairly assess the expected family contribution in some individual circumstances. Families with unique, documented circumstances that affect the ability to contribute toward educational expenses may request a reevaluation of financial aid eligibility. Requests for reevaluation must be in writing and must include a detailed description of the family’s unique circumstances.
Components of the cost of attendance include tuition, student body fee, room and board, books, incidental expenses, and a travel allowance. In 2014–15, the room and board component of the financial aid budget will consist of one of the following amounts: $12,200 for a regular residence hall on board; $14,030 for a one-bedroom Birchwood/RCA on board; $12,930 for a two-bedroom Birchwood/RCA on board; $6,760 for off-campus; or $2,080 for living at home. The calculation varies for students who live in campus housing but do not contract with the college for board or study off campus on approved exchange programs. If a change occurs in the student’s housing status during the academic year, the financial aid package will be adjusted accordingly.
Reed attempts to meet the full demonstrated institutional need of all continuing students who file their financial aid application on time each year, and who maintain satisfactory academic progress. Satisfactory academic progress for federal funds at Reed College is defined as a minimum of three units earned per semester, a minimum of a 2.0 grade point average maintained each semester, and the bachelor’s degree completed within a maximum of six years. For institutional funds, satisfactory academic progress has the same minimum units and GPA requirements as for federal funds; however, the maximum time frame for institutional funds is four years (eight semesters). Academic records for students receiving federal, state, and/or institutional financial aid will be reviewed at the end of each semester for compliance with satisfactory academic progress requirements. Students who fail to meet satisfactory academic progress requirements and lose eligibility for financial aid should check with the financial aid office regarding reestablishing eligibility.
In addition to continuing students, Reed attempts to meet the full demonstrated institutional need of all first-year and transfer students who demonstrate need and who meet all admission and financial aid application deadlines. Reed’s financial aid program includes federal, state, and institutional resources. Financial aid may be in the form of grants, loans, and student employment. The details of these funds are described in the following sections. All applicants should pay particular attention to the deadlines under the heading “Applying for Aid.”
Federal regulations require confirmation of Selective Service registration for male students to be eligible for any federal funds. A drug conviction that occurs during a period of enrollment for which the student is receiving Title IV grants, loans, or work assistance will affect eligibility for federal financial aid. Institutional financial aid is not available to students attending Reed in order to receive a second bachelor’s degree.
Grant, loan, and scholarship funds at Reed College are disbursed to the student twice each academic year. One-half of the award will be credited to the student’s account in the business office at the beginning of fall semester and one-half at the beginning of spring semester, unless stated otherwise in the award offer. Outside scholarships will also be disbursed half in the fall and half in the spring, unless the donor specifically requests a different disbursement schedule. Fall-only or spring-only students will receive one disbursement rather than two.
Grants
Reed Grants
The primary source of grant assistance at Reed College is the college itself. Reed budgeted approximately $21,600,000 in grant funds for the 2014–15 academic year, with individual awards ranging from about $1,000 to $59,910.
Federal Pell Grants
These need-based grants are awarded by the federal government on the basis of the information submitted on the FAFSA. Pell grants range up to a maximum of $5,730 annually for the 2014–15 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 the 2014–15 academic year.
Information regarding federal grants and other federal financial aid programs is available at 800-4-FED-AID or on the web at www.studentaid.ed.gov.
Loans
Financial aid packages at Reed usually include a student loan. A student loan may be a Direct Loan, a federal Perkins Loan, a Reed loan, or a combination of loans. 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. The total recommended loan amount at graduation from Reed is $16,000, although some students do not borrow the maximum amount, while others choose to borrow more. Members of the 2013 graduating class had an average loan indebtedness of $20,079 at graduation. Parents also have the option of requesting loan funds. A parent may borrow funds through the federal Direct Parent PLUS Loan program.
Federal Direct Loans
There are two types of Direct Loans: subsidized and unsubsidized. To be eligible for an interest-subsidized loan, financial need must be demonstrated based on the cost of attendance less the federal expected family contribution and other financial aid resources. 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; either students can pay the interest or it will be capitalized. Current interest rates and fees for the Direct Loan program can be found at www.studentloans.gov.
Information on how to obtain a Direct Loan at Reed is available online at www.reed.edu/financialaid/direct_loans.html. The maximum amount that a student may borrow in the Direct Loan program may be different from Reed’s recommendation. First-year students may borrow up to a yearly federal maximum of $5,500, sophomores $6,500, and juniors and seniors $7,500.
Federal Perkins Loans
Federal Perkins Loans bear a low interest rate of five percent and are distributed by the college. There is no processing fee related to this loan. Interest accrual and monthly repayment begin nine months after graduation or after a student ceases to be enrolled at least half time. The repayment period cannot exceed 10 years. Due to the limited amount of available federal Perkins Loans funds, recipients of these loans at Reed are usually students who demonstrate the greatest financial need. Students with this type of loan will need to complete loan paperwork with the business office, usually during fall registration (or spring registration for spring-only students).
Reed Loans
The college has a loan program designed for international students who qualify for need-based financial aid. These loans are designated for international students receiving Reed grant aid, because international students are ineligible to receive any type of federal funding. The maximum loan amounts are $2,500 for first-year students, $3,500 for sophomores, $4,500 for juniors, and $5,500 for seniors. All Reed loans are currently at a nine percent rate of interest. There is no processing fee involved with this loan. Monthly repayment begins after graduation, or when a student ceases to be enrolled at Reed College at least half time. If a student is in repayment and fails to send in a monthly payment, the interest rate on the loan may be increased to 12 percent. Students with a Reed loan will need to complete loan paperwork with the business office, usually by the time of registration.
Federal Direct Parent PLUS Loans
The Direct Parent PLUS Loan program allows the parent of a dependent undergraduate student to borrow up to the student’s cost of attendance, less any financial aid the student receives. Current interest rates and fees for the Direct PLUS Loan can be found at www.studentloans.gov. There is no interest subsidy on the PLUS loan; interest and repayment begin immediately. The first payment is due within 60 days after full disbursement of the loan funds. The standard repayment period is 10 years.
Student Employment
Work is available both on and off campus for Reed students. Students usually use their wages to pay for books and other incidentals. Earnings from Federal Work-Study and Academic Year Employment are not credited to the student account; paychecks are issued biweekly directly to the student after the student finds employment and has worked to earn the funds. The ability to earn student employment funds will depend on the student’s academic schedule, the availability of jobs on campus, and the student’s willingness to work. Students who are unable to utilize the work portion of their financial aid package may be eligible to borrow an additional amount under the federal student loan programs. Unused student employment funds will not be replaced with grant funds.
Federal Work-Study
Federal Work-Study is a federal employment program administered by Reed. Students may seek jobs on campus through a variety of offices, or may find off-campus employment opportunities through SEEDS, the community service office. Federal Work-Study funds are reserved for students who demonstrate the greatest financial need.
Academic Year Employment
Students not eligible for federal Work-Study may have Academic Year Employment included as part of their financial aid package. Academic Year Employment may only be used for on-campus employment.
Off-campus Employment
The Center for Life Beyond Reed assists students seeking off-campus jobs in the local community, both during the academic year and during the summer. Off-campus summer opportunities include internships and employment positions throughout the country.
Outside Scholarships, Awards, and Benefits
Students are encouraged to apply for outside scholarships and awards that permit recipients to choose the college at which they will use the money. Information on outside scholarships is available from high school counselors, in the reference sections in most libraries, and on websites such as www.finaid.org or fastweb.com.
Outside awards, such as privately funded scholarships, will replace or reduce the components of a Reed financial aid award in the following order:
- unmet need for students whose demonstrated need has not been met (late applicants)
- the difference between the federal and institutional calculation of the expected family contribution (EFC)
- recommended student loans
- student employment opportunities
- institutional grant funds
Outside benefits, such as VA benefits, employment-related tuition benefits, or need-based state and federal grants, reduce the Reed grant first, then any recommended loan and work eligibility.
Applying for Aid
Detailed application instructions are available on the Reed College financial aid website at www.reed.edu/financialaid/. It is recommended that students refer to this website, as application requirements and deadlines may change annually. The Reed College financial aid office communicates with all admission applicants and current Reed students by email and via the self-service link from the financial aid website (www.reed.edu/financialaid/banner). Email communication to admission applicants will be sent to the applicant’s email address listed on the Common Application; email to continuing students will be sent to the student’s reed.edu address. All communication regarding the status of a student’s application for financial aid will be directed to the student; status updates are not provided to parents.
The self-service link allows students to check the status of their financial aid application, review financial aid eligibility, accept or decline financial aid resources, and report any outside resources, such as private scholarships, to the financial aid office. Information regarding creating a self-service account will be sent to admission applicants who indicate they wish to be considered for financial aid and to continuing students who submit a financial aid application. By creating a self-service account, a student agrees to participate in electronic transactions with the financial aid office. Students who wish to opt out of electronic transactions and receive a paper award notification must notify the financial aid office in writing via the U.S. Postal Service.
First-year and Transfer Applicants
To apply for federal and institutional (Reed) financial aid, admission applicants must file the Free Application for Federal Student Aid (FAFSA). In addition, to apply for institutional (Reed) financial aid, admission applicants must file the College Scholarship Service’s PROFILE form. Applicants whose parents are divorced or separated must also have a Noncustodial PROFILE (NCP) submitted by the applicant's noncustodial parent to be considered for institutional (Reed) financial aid. After these forms are submitted to the appropriate processors, the applicant receives confirmation that the forms have been processed, and the college receives the processed data. If the applicant’s application for financial aid is submitted by the stated deadlines, an estimated offer of financial assistance will be available with the applicant’s admission decision. A verification worksheet (available on the IDOC or Reed College financial aid office website), as well as a signed copy of both applicant and parent IRS income tax returns for the current year, including all schedules and W-2 statements, are required and should be provided to the College Board IDOC service no later than April 15. The income tax returns, W-2 statements, and a verification worksheet must be received and processed before a final decision can be made on the applicant’s request for financial aid. Any new or updated information provided to the financial aid office may change the applicant’s eligibility for financial aid.
The following are priority deadlines for filing the three parts of the financial aid application for entering students:
| To be considered for federal and institutional financial aid, file the FAFSA with the federal processor by: | To be considered for institutional financial aid, file the PROFILE with the CSS processor by: | File student and parents’ current year federal taxes & W-2s and verification worksheet with the College Board IDOC Service: | |
| Early Decision | |||
| Option I | February 1 | November 1 | April 15 |
| Option II | February 1 | December 1 | April 15 |
| Regular admission | February 1 | February 1 | April 15 |
| Transfer applicant | March 1 | March 1 | April 15 |
Applicants who complete their financial aid file after these deadlines will be considered for financial aid on a date-prioritized, funds-available basis.
If the student is selected for verification by the federal processors or by Reed College, federal, state, and institutional financial aid funds will not be disbursed to a student’s account until the student and the dependent student’s parents use the IRS data retrieval tool to update the student’s FAFSA. Students and parents who file a tax return and are unable to use the IRS data retrieval tool must submit an IRS tax return transcript to the financial aid office.
Continuing Students
All financial aid recipients must apply for financial aid each academic year. Instructions for completing a financial aid application (filing the Free Application for Federal Student Aid (FAFSA), the College Scholarship Service PROFILE, and submitting appropriate tax documents and a verification worksheet), are available on Reed's website at www.reed.edu/financialaid/.
After submitting the FAFSA and the PROFILE to the appropriate processors by April 1, the student receives a confirmation that the forms have been processed, and the college receives the processed data by the May 1 due date. The verification worksheet and a signed copy of both student and parent current-year IRS income tax returns, including all schedules, W-2 statements, and 1099 forms, should be sent to the College Board IDOC Service no later than April 15. If a parent has filed a federal tax extension (form 4868), copies of that form and the W-2 statements should be submitted with the IDOC packet, and a signed copy of the completed IRS tax return is due as soon as it is available. If the student (and/or parent) will not be filing a federal income tax return, the student (and/or parent) should include a nonfiler statement with the IDOC packet, explaining why the student (and/or parent) will not be filing, indicating the total income, and providing copies of W-2 statements and 1099 forms. The financial aid office will not review files of continuing students for financial aid determination until it receives the processed FAFSA, the processed PROFILE, and a complete IDOC packet. For students who complete their files on time, decisions are usually available beginning in early June. Any portion of the application materials received after May 1 will result in the student’s application being considered late, which usually results in a 10 to 40 percent reduction in the student’s Reed grant eligibility for the subsequent year. Students who complete their financial aid application after July 1 will receive no institutional funding (Reed grant) and may receive reduced federal funding for the subsequent year.
The following are priority deadlines for filing the three parts of the financial aid application for continuing students:
| File the FAFSA with the federal processor by: | File the PROFILE with the CSS processor by: | File student and parents’ current year federal taxes & W-2s and verification worksheet with the College Board IDOC Service: | ||
| April 1 | April 1 | April 15 |
If the student is selected for verification by the federal processors or Reed College, federal, state, and institutional financial aid funds will not be disbursed to a student's account until the student and the dependent student’s parents use the IRS data retrieval tool to update the student’s FAFSA. Students and parents who file a tax return and are unable to use the IRS data retrieval tool must submit an IRS tax return transcript to the financial aid office.
Returning after a Leave of Absence
Reed students who have been granted a leave of absence may apply for financial assistance on the same basis as continuing students, with the same forms, income tax return requirements, and deadlines. Applications for financial aid completed after the May 1 deadline will be considered on a funds-available basis. There is no different application deadline for students entering in spring semester. Students on leave should consult the Reed College Financial Aid website for application instructions and deadlines.
Returning after a Medical Leave of Absence
Reed students who have been granted a medical leave of absence may file for financial assistance on the same basis as continuing students, with the same forms, income tax return requirements, and deadlines. Applications for financial aid completed after the May 1 deadline will be considered on a funds-available basis. There is no different application deadline for students entering in spring semester. Students should be in contact with the student services office about the readmission process. Financial aid application instructions and deadlines may be found on the Reed College Financial Aid website.
Returning after Being Readmitted to the College
Reed students who have withdrawn from the college may file for financial assistance on the same basis as continuing students, with the same forms, income tax return requirements, and deadlines. Applications for financial aid completed after the May 1 deadline will be considered on a funds-available basis. There is no different application deadline for students entering in spring semester. These students should be in contact with the registrar’s office about the readmission process. Financial aid application instructions and deadlines may be found on the Reed College Financial Aid website.
Undergraduate Independent Student Definition
Reed College Financial Aid (Reed Grant)
For the 2014–15 academic year, a student will be considered to be an independent student, for the purpose of determining eligibility for institutional financial aid (Reed Grant), only if one of the following two conditions is met:
- Born before January 1, 1990, or
- Ward of the court or both parents are deceased.
If the student meets one of these conditions, eligibility for Reed Grant is based on the student’s (and spouse’s, if married) income and assets.
Reed College expects the student and the student’s parents to assume the primary responsibility for educational expenses; therefore, if the student does not meet one of the two conditions listed above, the student must complete the parental income and asset portions of the College Scholarship Service (CSS) PROFILE to be considered for institutional financial aid (Reed Grant).
Federal Financial Aid
For the 2014–15 academic year, a student will be considered to be an independent student, for the purpose of determining eligibility for federal Pell Grant, federal SEOG Grant, federal Perkins Loan, federal Direct Loan, and Federal Work-Study, if one of the following conditions is met:
- Born before January 1, 1991;
- Currently serving on active duty in the U.S. Armed Forces;
- Veteran of the U.S. Armed Forces;
- Ward of the court or both parents are deceased;
- Married;
- Graduate or professional student;
- Have legal dependents, according to federal definition;
- Emancipated minor as determined by a court;
- In a legal guardianship as determined by a court; or
- Homeless (documentation required).
If the student meets one of these conditions, eligibility for federal financial aid is based on the student’s (and spouse’s, if married) income and assets.
For questions regarding a student’s dependency status for financial aid eligibility at Reed, contact the financial aid office.
Student Consumer Information Required by the Federal Government
In order for the college to continue to be eligible to receive federal student financial aid program funds, Reed is required to provide consumer information about the following:
- Rights under the Family Education Rights and Privacy Act (FERPA)
- Terms and conditions of loans received under the Direct Loan and Perkins Loan
- Financial assistance available to students
- Academic programs, costs, facilities, and policies, including: withdrawal procedures, refunds, and return of aid; accreditation; disability services and facilities; penalties and policies on copyright infringement; transfer of credit policies
- Completion and graduation rates
- Retention, placement, and postgraduate study
- Campus crime and fire safety
- Textbooks
- Drug and alcohol abuse prevention
- Private education loan disclosures
The majority of this consumer information is available in this catalog or on Reed’s website at www.reed.edu. Paper copies are available upon written request to the appropriate office on campus.
Restricted Scholarships and Loan Funds
Over 25 percent of Reed’s institutional financial aid resources come from endowed and restricted scholarships created by alumni, parents, and friends of the college. Without the generous support of these donors, Reed could not offer the same level of grant funding to students who are unable to attend the college without financial assistance. Students are notified in the fall if their Reed grant is being funded by an endowed or restricted scholarship. Students who accept Reed grant funds will have their name, major, and hometown released to the donor of the endowed or restricted scholarship that funds their Reed grant.
Emergency loan funds serve students who are experiencing financial hardship and are unable to receive assistance from their parents or family on an emergency short-term basis. These emergency loans are typically limited to $500 or less, and must be repaid by the end of the semester in which the loan is made. Application is made through the Reed College financial aid office.