What the financial aid “gap” means to Stevens

Most students here at Stevens are well aware of the stress created by the cost of college. Not just the high base price, but also the complicated and confusing process behind that cost. According to The New York Times, one of the most confusing aspects of university finance is financial aid.

Financial aid packages are based on a family’s Free Application for Federal Student Aid (FAFSA), which takes a family’s gross income, taxes paid, and the value of their assets, then calculates a family’s “Expected Family Contribution.” This is the number that determines how much a student’s family is expected to contribute to their tuition, and, by extension, the aid they are to receive from their school. The New York Times noticed that this number is often much higher than a student might expect, leaving them with a smaller financial aid package. At that point, the family must make up the difference between tuition and financial aid, a dollar amount often referred to as the “gap.”

The gap is very important when exploring the financial standing of students, as it represents the money that they must pay, either through loans or other avenues. The average gap amount is roughly $11,000 at public schools and about $16,000 at private institutions. These marks are up 72% and 42% respectively from their 2008 values. According to The New York Times, the gap continues to grow because incomes remain relatively stagnant while tuition continues to increase (a problem that could be partially solved via a proposed New Jersey bill this year).

At Stevens, this problem is even more pronounced. According to the school, the average cost of attendance is around $57,170 per year, while CollegeFactual.com reports the average financial aid package at just $32,133 per year. This means that the average gap a student must cover at Stevens is $25,037 per year. This is nearly $10,000 above the national average.

According to The New York Times, many schools across the nation are helping to solve this problem by being more transparent about the cost of attending their school. Most schools are unable to meet 100% of the financial need of their students, but parents and children could greatly benefit from this financial burden being easier to navigate.