Frequently Asked Financial Aid Questions

1. Does Rice really review parent and student income tax returns and W-2 forms?
Yes; each aid application and the supporting documents are reviewed prior to awarding aid. Completed tax returns are required before an aid award will be made.

2. How does Rice determine the parent contribution?
Rice considers it the responsibility of the parents to contribute to students’ educational costs. The parent contribution is based in part on the federal methodology approved by Congress and also takes into consideration the financial resources available to parents. Although Rice recognizes that parents have many financial obligations and choices for how they wish to use their resources, Rice considers providing for a student’s undergraduate education a primary use of those resources.

3. If a parents’ tax return reflects a very low Adjusted Gross Income (AGI), how does Rice determine a Parent Contribution?
In some cases Rice recognizes that due to business and other deductions, the AGI reported does not represent a family’s financial strength. For these families Rice determines a family contribution based on other information reported. Additional information documenting income stream will be necessary if a review is requested.

4. Why is there a student contribution?
Rice believes that all students should contribute to meeting the cost of attendance either through any savings or investments and earnings from academic year and summer employment.

5. Why might the general student budget be different than my actual costs?
The general student budget is an average budget. Individual budgets are not created for each student based on that student’s actual expenses. Aid is awarded based on the average budget; in most instances the budget is not increased unless the student documents higher expenses and wishes to secure additional loan funding.

6. What is the difference between need-based assistance and merit scholarships?
Need-based assistance is awarded by Student Financial Services based on a family’s income profile. Merit scholarships are renewed by the Admissions Office and are granted by individual departments. Student Financial Services has no role in the selection of merit recipients.

7. If a student is a National Merit Scholar, why might the award amount change next year?
The basic merit scholar amount is $750/year. If the student has unmet need, as determined by Rice, the student may receive up to $2,000/year as part of need-based institutional funding. Rice reports National Merit Scholarship amounts to the National Merit Program early each summer. If a student does not have unmet need or has an incomplete application and need has not been assessed, Rice will report the merit amount of $750. If later it is determined that the student has additional need, other grants will be awarded to make up the difference—the National Merit award amount will not be adjusted for that year.

8. Why may the total amount of the need-based awards differ from year to year?
Eligibility is reassessed each year. Many factors could affect a student’s need-based award eligibility. Some of the common reasons eligibility may change are changes in family income or assets or the number of children enrolled in undergraduate program or the amount of merit aid that the student is receiving.

9. How many semesters may a student be eligible for Rice sponsored aid?
A student is eligible to apply for Rice sponsored aid during the first 8 semesters at Rice. If the student is enrolled beyond 8 semesters, the student may apply for federal and state aid for 2 semesters. Even if a student attends part-time during a semester or withdraws during a term, the semester is counted toward the number of semesters that Rice sponsored aid is available. (Architecture students may apply for Rice sponsored aid for 2 terms following their preceptorship.)

10. If I submit special circumstances one year and the aid package is adjusted, why might it not be adjusted in future years?
If special circumstances are submitted and the next tax return shows that the family had substantially more income for the year than they anticipated, an adjustment will not be made for a second year.

11. If we have asked for a file review and are unhappy with the response, what is the next step?
File reviews are done with great care and under the guidance of the upper administration. If you are unhappy with a review, you can request that an administrative committee review the file. Very rarely, however, does that committee recommend changes to response prepared by the Student Financial Services Review Committee.

12. Why does the budget in the award letter and my bill statement show different costs?
To calculate financial need Rice uses an average comprehensive cost of attendance for students comprised of tuition, room and board, plus other costs not reflected on the bill such as transportation and college expenses.

13. My family needs help in meeting the family contribution. What options are available?
Rice offers a payment plan to allow families to pay in installments. Rice also participates in the federal parent loan program (PLUS) to allow parents to borrow low-interest loans. Many families use a combination of the payment plan and the PLUS loan to meet the cost. Information about the payment plan and the PLUS loan is included with the summer bill. Students also have the option of assisting in the cost through both subsidized and unsubsidized federal Stafford student loan programs as well as private loan options.

14. How much can a student actually borrow while at Rice?
Rice will make an initial offer of student loans in a need-based package. These loan amounts might be increased, however, if special circumstances are submitted or if the student requests to borrow more to assist with the family contribution or other expenses. Under the Stafford Programs the maximum a dependent student can borrow each year is $2,625/freshman; $3,500/sophomore; $5,500/junior; $5,500/senior. Stafford loans do not require a parent to be a cosigner. Private, alternative loans are also available and may or may not require a parent to cosign.

15. If my parents or I are offered a federal or private loan, what do we need to do to have the funds credited to my student account?
To complete the loan process, you need to complete the online loan application and promissory note. For more information about the loan process, please visit www.ruf.rice.edu/~fina/loan.htm

16. If a student enrolls for less than 12 hours, is financial aid adjusted?
Yes, financial aid is prorated to reflect reduced enrollment. If a student enrolls for less than 6 hours no financial aid is available.

17. I am considering a study abroad program. Can I apply for financial aid through Rice?
Yes. If the program is more expensive than attending at Rice, aid will be granted using the standard Rice cost of attendance budget. If the program is less expensive, the cost of attendance budget will be adjusted when aid is awarded. Students need to be aware that Rice will not release funds early to pay for airfare, etc. Students need to make arrangements to pay for the costs they incur prior to the start of the Rice semester.

18. Is financial aid offered for the summer term?
If a student has remaining loan eligibility, the student may be able to borrow to meet summer educational costs. The student may not borrow funds to cover course work not sponsored by Rice University.

19. If I have questions or need additional information, and I call or email Student Financial Services, how long will it take to get a response?
Student Financial Services makes every effort to respond to questions as soon as possible. Ideally you would get a response the same day that you contact us. During peak periods in the summer and the first few weeks of each semester, however, it may take a few days to get a response. If you are asking for a file review, please recognize that a response will most likely take several days.