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1011 Aid Handbook by ps94506


									                        SWARTHMORE COLLEGE
            FINANCIAL AID HANDBOOK 2010-2011

             A helpful guide to financial aid
     opportunities, policies, and family responsibilities.

 This handbook will help you to understand your financial aid opportunities and
 responsibilities, and will also help you to understand the College and federal policies
 which guide us.

 At Swarthmore College, financial aid is awarded to meet students’ demonstrated financial
 needs. To determine the level of support you will need for the 2010–11 academic year, we
 first assess your family’s capacity to contribute toward your Swarthmore education. The
 financial statements you and your parents submit provide us with information
 concerning family income and asset strength, as well as the demands on those resources.
 Although we believe that you and your parents have primary responsibility for financing
 your education, we stand ready to fill in the gap between what Swarthmore costs and what
 you and your parents have the capacity to pay.

 Please have your financial aid award letter in hand when reading this handbook. In the first
 sections of this handbook, we explain the elements of our financial aid award letter —
 section by section—and the basis of our decision to support you. We hope this handbook
 will answer your questions and address your concerns.

 Of special interest: Use the chart on page 9 to calculate your family’s share of your
 2010–11 bill for direct Swarthmore College charges.

FINANCIAL AID OFFICE            Swarthmore College       500 College Avenue     Swarthmore, PA 19081
e-mail:     telephone: 610-328-8358      website:

pages 3-5   About our aid award letter—section by section
            Be sure to have your aid award letter in hand as you read.
                     • expected educational and living expenses
                          • your Swarthmore bill
                          • other expenses you’ll face:
                               • about your book expenses
                               • about your transportation expenses
                     • expected family resources
                          • your parents’ contribution
                          • your contributions from summer earnings and assets
                     • financial aid resources
                          • scholarships and grants
                          • campus job opportunity

pages 5, 10, About student loans
11, and 12

page 6      Other facts to keep in mind
                     • the Student Aid Report from your federal FAFSA application
                     • Selective Service registration and federal aid eligibility
                     • renewal of College financial support
                     • College health insurance for aided students
                     • satisfactory academic progress and aid eligibility
                     • students living off campus
                     • College billing
                     • taxation of scholarships/grants
                     • our correspondence is sent only to you — be sure to share all with parents

page 6      Our financial aid office staff—who can help you with what
pages 7-9   Answers to some often-asked questions
                This section will answer many of your questions including, among others, those concerning:
                    • reasons why financial aid decisions may change from year to year
                    • aid for study abroad
                    • how outside scholarships are coordinated into our award
                    • requests for reconsideration/appeals

page 9      How to calculate your 2010-11 Swarthmore bill—a useful chart

pages 10-12 Financing options—short-term and long-term
                   • federal Direct Stafford Loan for students
                   • federal Direct PLUS Loan for parents
                   • monthly payment plan through Swarthmore College
                   • campus work opportunities

ABOUT OUR AWARD LETTER—section by section

Your Swarthmore College bill —                                                   About transportation expenses:
the actual charges for 2010–11:                                                  Some transportation costs are included in our estimate for your
$39,260 tuition                                                                  personal expenses, but extraordinary transportation costs
    340 student activity fee                                                     (beyond 100 miles from Swarthmore but within the U.S.) are listed
  6,100 room                                                                     separately on the award letter. A separately noted travel expense
  5,800 board                                                                    represents two round-trip fares between your home and
$51,500 total charges for the year will appear                                   Swarthmore at the least expensive rates (based on bus, train or air-
              on your College bill, one half each semester                       fare information provided by our local travel agency). Do let us
Other expenses you should anticipate:                                            know if we have under or overestimated this travel allowance. We
These other indirect expenses will not appear on your College bill               expect that you will use summer earnings and savings to travel to
but are included on your financial aid award letter.                             Swarthmore in the fall and to buy your books once you arrive on
$ 1,150 estimated cost for books and supplies                                    campus (whether or not there is an expected summer earnings
  1,120 estimated cost for personal/incidental expenses                          contribution noted in our award letter).
$53,770     total educational and living expenses                                About your book expenses:
              This is the figure we use when determining your
              family’s need for our support.                                     Be certain to arrive on campus each semester with enough money
                                                                                 for your books since you will be buying them just as classes begin.
More about your other expenses:                                                  We estimate what you need to spend for books and supplies. What
                                                                                 will you actually spend? Students report that our estimates are
When planning your budget for the coming year, keep in mind                      quite close to what they actually spend when they buy books new
that campus parties, movies, lectures, athletic events, and con-                 in the College bookstore, but your expenses will depend on where
certs are open to all students without charge.                                   you choose to buy your books.

This is our assessment of your family’s capacity to contribute to your Swarthmore expenses for the coming year.

about EXPECTED PARENTS’ CONTRIBUTION: This                                       about EXPECTED STUDENT’S CONTRIBUTION:
is your parents’ fair share based on our assessment of their                     • Expected contribution from summer earnings: We expect
capacity to help you from their assets, current income or from                   students in the Class of 2014 to save $2,000 from their summer
future resources. In determining this figure, consideration was                  earnings and continuing students to save $2,500 (because their
given to your parents’ financial strength as well as the demands                 summer is longer) to help with their Swarthmore expenses. You
on their income and asset resources. Normal demands on family                    might use that money to pay for your travel to and from campus,
resources such as costs for maintaining a family your size (housing,             for your books when you arrive at Swarthmore, or for personal
food, medical, transportation, utilities, clothes, and the like) and taxes       expenses. You may choose to use those earnings to help to pay
are considered. Parents’ needs for retirement protection and some                your College bill. Although the College cannot increase our
of siblings’ educational expenses also influence our review.                     scholarship award if your summer earnings fall short of the stated
In most cases, standard demands on income rather than actual                     expectations for any reason (whether it is because you cannot find
demands are considered. The uniform need-analysis system                         a job, you cannot save enough, you go to school, you choose not
offered through the College Scholarship Service (CSS) of The                     to work, you choose to take a low-paying or volunteer position,
College Board provides some guidance in our decision.                            or you are unable to work), you may be able to fill in the gap by
Swarthmore makes many generous extra allowances for families'                    borrowing through the federal Direct Stafford Loan program or
special circumstances. Among those special allowances are:                       through the federal Perkins Loan Program or by working more
Elder care and childcare expenses; we recognize the higher cost                  during the academic year. As funds permit, the College helps stu-
of living in some areas of the country; we reduce the influence of               dents find summer jobs throughout the country in private non-
home equity in our analysis; the influence of parents' investments               profit or public agencies eligible for participation in the federal
and savings is reduced if they do not have retirement provisions                 Work-Study Program (FWS) (see page 5). These positions are not
from their employers; we exclude from income any capital gains                   generally offered until the summer following a student’s first year
or rollovers; we allow for medical expenses--including the cost of               at Swarthmore.
insurance premiums; younger sibling's private school tuitions are
included; we exclude from our consideration the student's previ-                 • Expected contribution from student assets: All assets you
ous year income; parents' savings in their children's names are                  hold (whether they are presently liquid or not) are expected to
treated as parents' assets and so have less influence; we allow for              be available for college. You will be expected to contribute at
parents' repayments of loans for their own educations. If your par-              least 25% of your originally reported assets each year you are at
ents find the expected contribution difficult to pay, perhaps you                Swarthmore (regardless of how and when you choose to spend
and they can consider the financing options described at the end                 your resources).
of this booklet.

(About our award letter, continued)

About parents’ assets held in the student’s name: You may have              about OTHER SOURCES: Other sources may include
noticed that we asked you to be precise about the source of your            veterans educational benefits, state rehab benefits, or tuition
savings or investments when you completed our finan-                        grants from parents’ employers. If you receive one of these
cial aid application. That is because we treat parents’ assets held         benefits but it is not listed on our award letter, or if you receive
in your name as your parents’—on paper, and for our purposes                an amount different from that listed, please let us know so that
only. We do that so that we are not unduly harsh to those                   benefit can be factored into our aid decision.
families who save in the student’s name.

You will notice that the amount of financial aid we offer is equal          If you receive aid from a source not shown on the award
to your need as we have assessed it. Most often, aid is awarded as          letter or receive an amount different from that we have listed,
a combination of scholarship and a campus job opportunity. In               you must advise us so that our aid can be adjusted to avoid over-
most cases, the first $1,780 of need is met with a                          awarding. Please read page 8 for the description of how outside aid
campus job opportunity. Any need beyond that is met through one             is coordinated into our need-based aid offers. Any amount listed
or more of the following sources: a Swarthmore College                      under the Pell Grant, state scholarship or other is our estimate of
Scholarship; a state grant through your state scholarship program;          your eligibility. If an estimated amount is listed and you have not
a federal Pell Grant or Supplemental Educational Opportunity                completed a federal FAFSA application—the Free Application for
Grant (SEOG); or other national, regional or community-based                Federal Student Aid,— at—do so now so that we
scholarships.                                                               may finalize your federal aid eligibility.

• The Swarthmore College Scholarship is a gift from                         • SEOG—federal Supplemental Educational Opportunity Grants
the College that need not be repaid. Your scholarship may be sup-           —are offered to eligible students from our limited federal allocation.
ported with the College’s endowed, restricted or general funds.
Many of these funds were provided by generous alumni and                    • State Scholarships, offered to needy students from
friends of the College and you may be asked to provide a brief              Connecticut, Delaware, Maine, Massachusetts, Ohio,
profile of your interests and activities for your donor. One half of        Pennsylvania, Rhode Island, Vermont, Washington, D.C., and
your Swarthmore Scholarship will appear as a credit on your                 West Virginia, can be used at Swarthmore. (Other states’ scholar-
College bill each semester.                                                 ships may not be taken out of state.) Any amount shown on your
                                                                            award letter is our estimate of your eligibility for state support—
• Federal Pell Grant eligibility is determined using a federal              your state determines your actual eligibility. Note: If our estimate
U.S. Department of Education system. If we have listed a Pell               of your state scholarship is not accurate, we will adjust our
award, this figure is an estimate, and no payment of that grant is          Swarthmore Scholarship offer to avoid over or under awarding.
possible until we can review the results of your federal FAFSA              If we have listed an estimated state scholarship and you have not
application. If you have not already done so, you must complete             yet applied for consideration, you must do so now at
the FAFSA at and submit your FAFSA appli-         In most states, the federal FAFSA serves as a
cation to the federal processor on-line. The FAFSA serves as the            state scholarship application. The College cannot fill the gap if an
Pell Grant application (and informs us about your eligibility for           eligible student does not apply on time for state scholarship help.
other federal aid). Once you receive the results of your FAFSA              One half of your state scholarship will appear as a credit on your
application, the federal Student Aid Report – SAR– review it for            College bill each semester, but only after the College receives the
accuracy and correct it, if necessary, according to the instructions.       funds from your state.
Please note: send your corrections back to the federal processor,
not to Swarthmore. If our estimate of your Pell Grant eligibility           • Outside merit-based scholarships, from other national, reg-
is not accurate, we will adjust our Swarthmore Scholarship to               ional or community-based awards. If you are awarded a schol-
avoid over or under awarding. Once your federal SAR has been                arship from a source not listed on our aid offer, inform our Fin-
verified and the award amount is confirmed, one half of the Pell            ancial Aid Office immediately Please see page 8 for an explan-
Grant will appear as a credit on your College bill each semester.           ation of how outside awards affect our aid offer.
The College cannot fill any gap left by those eligible students
who do not follow through to apply for federal Pell Grant help by
submitting the FAFSA.

about CAMPUS JOB OPPORTUNITIES:                                             expenses but not to pay your College bill. A work award of
• General information for all students: A campus job opportu-               $1,780 for the year represents about 7 or 8 hours of work each
nity is just that, an opportunity but not a requirement. About              week. The number of hours you work weekly to earn this amount
1,200 of our 1,500 students choose to work on-campus each                   depends on your wage rate and on the number of weeks you
year. Any amount listed on your award letter is an earning limit            work. Some positions require that you work during breaks and
rather than a guarantee of earnings. It is expected that you will           exam periods but many do not. We have set a low work limit so
use campus job earnings to help with your book or personal                  that your studies will not suffer. Also, this leaves more room in
(About our award letter, continued)

our aid award for our Swarthmore Scholarship help. Hourly rates            those who wish to work off campus and who qualify for the feder-
for on-campus work range from $8.29 to $8.89. If you choose not            al Work-Study Program (FWS), off-campus placements in public
to work, or choose to work fewer than about 7 or 8 hours a week,           or private non-profit agencies may be arranged through the
you may fill the resulting gap by borrowing through the federal            Financial Aid Office – if funding is sufficient.
Direct Stafford Loan program—but again, no more than the max-
imum allowed for your grade level—or through the federal                   • About a few specific jobs for continuing students: Writing
Perkins Loan Program. Our student employment office—SEO—                   Associates, Admission Fellows, Swarthmore Academic Mentors
maintains a website at where you can                or the like may find that their earning limits have been increased
read about some campus jobs and can see the list of documents              to allow for that additional work. Scholarship amounts are not
you’ll need to bring to campus to establish your hiring eligibility.       affected.

• Information for new student employees: New students who                  Resident Assistants for 2010–11 will be compensated $6,100 for
wish to work on campus during the academic year should pay                 their work. Of the $6,100, $4,280 will appear as a credit on your
special attention to the list our Student Employment Office                bill ($2,140 each semester) and $1,820 will come to you through
(SEO) will distribute at orientation. Aid recipients who wish to           the student payroll for your personal expenses ($910 each
work must arrange for their own jobs and will be given hiring              semester). As a rule, RA compensation replaces other self-help—
priority consideration for hiring over non-aided students during           earning—elements of our aid award; it does not affect the amount
the first week of classes. Our SEO directors provide guidance              of our scholarship. If, however, standard self-help elements are
during freshman orientation and will help you find a position on           not a part of your award, your being an RA may affect our
or off campus if you have trouble finding one on your own. For             scholarship support.

                                                    About STUDENT LOANS
Although our financial aid awards no longer include loans—                 • If you have not yet made a federal Direct Stafford loan request
additional scholarship is being granted, instead—students may              (this includes all first-year students who will be mailed loan appli-
choose to borrow if they will not be earning enough during the             cation instructions in May), you might turn to page 9 of this hand-
summer or they do not wish to work during the academic year.               book to complete the chart. That will help you to determine how
Others may wish to borrow to help to pay the family's share of             much loan you may wish to request through our May mailing.
Swarthmore expenses. Federal Perkins Loans or Swarthmore
College Loans may be used to fill earning shortfalls, and federal          • One half of the amount you borrow–minus the . 5% federal orig-
Direct Stafford Loans may be used to help with the family share            ination fee–will be credited to your College bill each semester.
of Swarthmore expenses.
                                                                           • The Federal Perkins Loan is a long-term, low-interest (. 5%)
• The Federal Direct Stafford Loan: First-year students may                federal educational loan available in very limited amounts to
generally borrow $5,500; $6,500 for sophomores; and $7,500 for             students who have not been able to save from summer earnings,
juniors or seniors. In many cases, a portion of the available Direct       will not be working on campus during the academic year, or who
Stafford Loan can be used to replace summer or campus earn-                wish to borrow to buy a computer. Repayment of the Perkins
ings, to meet unusual academic expenses (for example, the cost             Loan begins nine months after you leave Swarthmore. You
of music lessons, extraordinary book expenses, extra trans-                need not repay the Perkins Loan while you are in graduate
portation or the like) or to help with the family’s share of               school, the military, the Peace Corps, in volunteer service in pri-
Swarthmore expenses.                                                       vate, non-profit, VISTA or Peace Corps-type organizations or
                                                                           during an internship preceding a professional practice. Total
                                                                           cancellation of the Perkins is possible if you teach handicapped
More about the federal Direct Stafford Loan:                               children or if you teach in certain schools with high concen-
• A Direct Stafford Loan may be federally-subsidized or unsubsi-           trations of students from low income families. Other loan can-
dized. (Subsidized = U.S. Department of Education pays the                 cellation possibilities are detailed in the Perkins Loan
interest on your loan during your enrollment. Unsubsidized =               Promissory note. If you are offered a Perkins Loan for the
interest accrues or you may pay it during your enrollment.)                coming year, one half of the total listed on your award letter will
Eligibility for the federal interest subsidy is determined when we         appear as a credit on your College bill each semester. New
process your federal Direct Stafford Loan request, and we will             Perkins borrowers will be asked to sign Perkins Promissory
advise you about your eligibility for loan interest subsidy.               Notes in September. If you borrow a total of $5,000 through the
                                                                           Perkins Loan program, you can expect to owe about $50 per
• If you have borrowed before you’ll need to complete a new loan           month in repayment.
promissory note on our website, and if you indicated the amount
                                                                           • Swarthmore College Loans (SCL) are generally offered
you wish to borrow for the coming year by completing question              to aided foreign national students when they are studying abroad
#21 on your “Swarthmore Financial Aid Request” form, we will               and may not work on campus. The SCL loan is interest-free
notify you when your loan request has been approved.                       during the borrower’s enrollment and then 5% interest during the
                                                                           10 year repayment period.
• See page 10 for loan application and repayment information.


College billing: One-half of your College bill is due mid-August               (Please note: Your AP credits are not considered in the rule that
and one-half in mid-January. Your semester bill will list charges and          aided students must earn at least 4 credits every semester.
show credits if we have awarded you a Swarthmore College                       AP credits may, however, act as prerequisites for entry to some
Scholarship, federal SEOG grant, Perkins Loan, SCL Loan or fed-                courses or may be counted toward the total credits needed for
eral Direct Stafford Loan or estimated federal Pell grant. All other           graduation.)
assistance expected from outside sources such as state or local
scholarships may be deducted from the amount due, but those funds              Students living off campus (but not with their families) are
will not appear as credits until they are received at the College. Bills       assumed to face room and board expenses equal to the amount the
are sent to you unless you asked that they be sent to your parents.            College charges; thus the budget we use for determining your aid
Use our chart on page 9 to determine what your bill will be.                   eligibility is the same whether you live on or off campus.
                                                                               Although College aid cannot exceed your College bill, you may
Renewal of College financial support is possible only if your                  use federal, state, other outside aid or family resources to meet
demonstrated financial need continues and if you make                          off-campus living expenses.
satisfactory academic progress. Each spring, your family will be
asked to submit updated financial statements so that your contin-              The federal Student Aid Report (SAR) is notice of your eligi-
ued financial need can be assessed. Returning students who have                bility for federal student aid that is sent to you at your e-mail
completed their aid applications on time will receive the next                 address or your home address by the U.S. Department of
year’s aid decision in June. You can be considered for our support             Education about three weeks after your federal FAFSA is
only during a normal-length program of 8 semesters. This limit                 completed. If you have corrections to your SAR, please follow
applies to our transfer students as well. (Since we do not consid-             the instructions on the SAR and submit the corrections on-line to
er the financial needs of our students whose programs are extend-              the U.S. Department of Education not to Swarthmore. Do not
ed beyond 8 semesters, we do not consider their siblings’ if the               submit the federal SAR to Swarthmore, but do list Swarthmore as
siblings are enrolled beyond 8 semesters.)                                     a recipient in your FAFSA application. Note: The SAR is notice
                                                                               only of your eligibility for federal aid. It cannot affect
College Health Insurance for aided students: All students are                  Swarthmore’s decisions about your need for our scholarship sup-
required to have health insurance coverage. If you are not covered             port.
by your family’s health insurance, you will need to enroll in
Swarthmore’s health insurance plan. If you qualify for                         Taxation of scholarships/grants: 2010-11 scholarships or grants
Swarthmore financial aid and you enroll in the College’s health                in excess of $39,600 (tuition and student activity fee) will be con-
insurance plan on time, you are eligible for a reduction in the                sidered under an IRS ruling to be taxable income, and must be
plan’s cost. To qualify for this benefit, you must formally enroll             reported as such to the Internal Revenue Service by April
in the College’s insurance plan by the deadline. Please pay care-              2011. Students who owe federal tax as a result of receiving grants
ful attention to the health insurance information letter which is              will be helped with their tax bills if they speak with our office in
sent to all students and parents in the spring from our Health                 March 2011.
Center. You will find instructions and firm deadlines for enrolling            Selective Service Registration and Federal Aid Eligibility:
in the College’s plan (or for documenting existing coverage                    Eligibility for federal student aid funds is linked to compliance
through your own plan). More about the College’s plan is avail-                with Selective Service regulations. Those who cannot register
able at Any questions about health                  should call or visit the director of financial aid (please do not
insurance should be directed to the Worth Health Center (610-                  write). The College has made a commitment to replace with
328-8061).                                                                     Swarthmore funds any federal funds forfeited by those who must,
Satisfactory academic progress, full-time enrollment, and                      but cannot, register with Selective Service. The College has
4 credits earned each semester is required of all aid recipients.              no special replacement funds, however, for any student who is
                                                                               not required to register.

 Who can help you with what—more about some of our Financial Aid Office staff:
 Joanne Barracliff is our loan coordinator. She mails first-year students federal Direct Stafford Loan application materials in May
 and processes student and parent loan applications throughout the summer. If you have questions that are not addressed in this hand-
 book or in the May mailing to come, you may contact her at 610-328-8554 or at
 Cathy Custer and Gina Fitts are our administrative assistants. They can help you with your general questions or will direct you to
 the appropriate staff member. You may contact them at 610-328-8358.
 Erin McConnell is our assistant director. She can help with questions about your financial aid, about College financial aid policies,
 about the taxability of scholarships, about the College’s endowed scholarships, and about how outside scholarships are coordinated
 into our aid awards.
 Kristin Moore is our associate director. She can help with your general questions about our financial aid decision, about College
 financial aid policies, about the Pennsylvania State Scholarship Program, about educational debt management, or any other topic. If
 you have questions that are not addressed in this handbook, you may contact her at 610-328-8392 or at


“Why isn’t there a loan in my financial aid award from Swarthmore?” “We want to borrow to meet our share of the bill. Which loan is
  We worry that debt might adversely influence our students’ deci- the best for my family?”
  sions about major or career choice so additional scholarship now            The federal Direct Stafford Loan is a loan specifically for you,
  replaces loans in our financial aid awards. You may still borrow            the student. It carries the lowest interest, and allows deferment or
  through the federal Direct Stafford Loan Program, however, if               accrual of interest and principal while you are enrolled, and pro-
  you wish to help with your family’s share of your Swarthmore                vides a good opportunity for you to share in the family contribu-
  expenses.                                                                   tion. Which loan is best for your parents? For parents who own a
                                                                              home, the repayment terms of a home equity loan may be most
“I am a newly admitted student —Why are financial aid awards                  favorable, or your parents may wish to seek a federal Direct
different from school to school?”                                             PLUS Loan (see page 11). A $10,000 Direct PLUS Loan costs
  Remember that you likely provided different information to                  parents about $120 monthly at the 7.9% interest. We have not
  various schools. Further, because resources and policies vary               seen any private loans offering terms more favorable than these
  widely from school to school, it is unlikely that decisions will            federal Direct loans.
  be similar. Among some possible differences:
                                                                            “My parents are not together and one is not willing to con-
    • You may have noticed the campus job opportunity in our aid tribute all you expect toward my Swarthmore expenses.”
       award is lower than another school’s. We keep the self-help            In fairness to all, the College must expect that parents will pay all
       as low as possible in order to make more room for more                 they are able (whether from current or future resources).
       scholarship help, and to keep campus work hours reason-                Although we cannot increase our scholarship aid to fill the gap if
       able.                                                                  a parent declines his/her responsibility, you may be able to bor-
    • We are most often able to make a more generous decision about           row. Let us know in writing if you have a problem.
       your aid eligibility because our aid application encourages
       applicants to better explain the family’s unusual expenses, to “Should I expect to receive the same amount of aid from the
       more clearly describe the source and purpose of their assets, and College each year?”
       to more precisely detail parents’ retirement protection. Our poli-     No. Since the amount of aid offered is related to College costs
       cies allow us to respond to those special circumstances.               and family resources, you should expect some change from year
    • Although your family may complete the PROFILE and federal               to year in the level of our support to you. We are committed to
       FAFSA long before their 2009 income and tax liability is certain,      meeting all demonstrated financial need as we assess it, but that
       Swarthmore most likely did not make you an aid offer until we          need must be reviewed annually. Although we will use the same
       were able to review your family’s complete 2009 federal tax            system of measurement each year, the details of your
       returns. If another school made you a tentative aid offer on the       family’s financial situation will surely change.
       basis of early information, its firm offer may well be quite dif-
       ferent from its tentative offer once the required tax return verifi-   Some reasons your total aid might be adjusted from year to year:
       cation is performed (sometimes even after your enrollment).             • Each year we consider the increase in College charges.
       Note: Some families may have misunderstood the applica-                 • Each year we pay careful attention to increases and
       tion instructions, forgetting to list student assets or all of par-        decreases in family income, and each year we use
       ents’ untaxed income on the PROFILE or FAFSA. Perhaps                      increased but standard allowances for family living.
       other schools have not yet verified these omissions before              • A sibling’s starting or finishing an undergraduate program
       making their aid offers.                                                   can have a profound effect in our determination of a family’s
    • Perhaps another school has offered to subsidize your                        capacity to pay for a Swarthmore education.
       parents’ educational expenses or your sibling’s graduate                • Each year, our College Budget Committee (made up of faculty,
       school costs. We cannot do so.                                             staff, and students) and our Board of Managers determine aided
    • Perhaps another school has not considered a non-custodial                   students’self-help levels–that is the expected summer earnings and
       parent’s financial situation, has not reviewed the Business                campus job components of our aid decisions. Continuing students
       Supplement, or has allowed for tax shelter losses. Bottom-                 are asked to contribute more from summer earnings than first year
       line, taxable income is often not the true measure of parents’             students since continuing students have longer summers.
       abilities to help, so we require a number of supporting doc-
       uments to make certain that our assessments are fair and “I have completed the chart on page 9 of this handbook and
       consistent for everyone.                                             find that my financial aid resources will exceed my Swarthmore
    • Our offer of aid is made to meet your need as we must assess bill for the year. Will I receive a refund of the excess?”
       it, and we cannot justify merely matching another school’s aid         Yes, if your financial aid resources exceed your bill for the direct
       offer. Do not view the level of our aid offer as any indication        Swarthmore charges of tuition, fee, room, and board, you can be
       of the degree of our interest in you—admission and financial           refunded the excess—one half in each semester. Swarthmore’s stu-
       aid decisions are made separately and aid policies cannot be           dent accounts office usually is able to refund the excess to you (by
       altered to woo a particular student. At Swarthmore, our finan-         campus mail) by the end of the first week of classes—if all of your
       cial aid awards are based only on your family’s financial situ-        aid funds have arrived at the College by the first day of class. Keep
       ation. We do not consider your academic credentials, nor your          in mind, however, that many outside scholarships—especially
       race/ethnicity, athletic, artistic or musical abilities, etc., in      those from your local community groups—don’t arrive until a few
       assessing your parents’ fair share—all that is wonderful about         weeks after classes begin. You can check your mySwarthmore
       you is considered in our admission decision.                           page on-line to see if your outside funds have arrived.

(Answers to some often-asked questions, continued)
“The College assumes I am eligible for assistance from the feder-                 eral Direct Stafford Loan or federal Perkins Loan programs to
al Pell Grant, my parent’s employer, or my state’s scholarship.                   fill the gap. Let us know if you would like to earn or borrow
How will my Swarthmore aid award be adjusted if the actual assis-                 more during the academic year.
tance from those need-based or entitlement sources is different
from the amount the College estimated?”                                         “How will I receive earnings from my campus job? Will those funds
  We are committed to meeting demonstrated financial need, and                  be credited to my student account or will I receive a paycheck?”
  will increase our Swarthmore scholarship support if the actual                  Paychecks are issued every two weeks for students who have
  federal Pell, federal SMART, federal ACG, state scholarship, or                 worked during that pay period and submitted time reports. You
  other need-based or entitlement award is less than we had antic-                may receive a paper paycheck or may arrange to have your earn-
  ipated. Conversely, we cannot overaward aid, so our scholarship                 ings directly deposited into your bank account.
  support will be decreased if the outside support exceeds the
  anticipated amount. We do not fill the gap, however, if you miss              “Will my Swarthmore aid award be adjusted if I receive
  application deadlines or if you fail to follow through with the               merit-based outside scholarships?”
  Pell Grant or state scholarship application process.                            Yes. Since your demonstrated need has been met with our aid,
                                                                                  any additional outside aid must replace a portion of our award to
“After paying tuition, fees, room and board what other                            you. Most of our students receive outside aid but they often
expenses will I face at Swarthmore?”                                              don’t know the precise amount of that support until late spring,
  You need to pay for your transportation and to buy books and                    well after we have made our awards to incoming students.
  supplies at the beginning of each semester, and will need to pay                Remember, you are obliged to inform the Financial Aid Office
  for your shampoo, laundry soap, toothpaste, stamps, snacks and                  directly of all outside aid. Outside aid cannot replace parent con-
  other personal/incidental expenses throughout the year. Since                   tribution, since that figure represents parents’ capacity to con-
  campus activities such as movies, parties, lectures, athletic                   tribute from their income and assets.
  events and concerts are open to all students without additional                “How will my aid be adjusted?”
  charge, your campus social life will not be much of an expense.                 As is our policy, the first $500 plus half of the remainder of your
  You can use a portion of your summer earnings to help with                      total outside merit-based assistance replaces that same amount
  your transportation and books, and use earnings from your cam-                  of the self-help elements of our aid decision—either the expected
  pus job to meet your personal/incidental expenses during the                    summer earning contribution or the campus job opportunity—
  academic year.                                                                  and the balance replaces Swarthmore Scholarship. For example,
                                                                                  if you receive notice of a $1,000 local community scholarship
“Might the College reconsider its assessment of my need for                       after we have met your demonstrated need with an award con-
financial aid this year?”                                                         sisting of a $34,250 Swarthmore Scholarship and a $1,780 cam-
  Yes, certainly. Our assessment of your family’s ability to contribute           pus job opportunity, our revision would look like this:
  was based on information you and your parents provided to us.                                                   original           adjusted
  If the information you provided was not complete or was not                                                      award              award
  correct, please WRITE to let us know. In that letter, be sure to                Swarthmore Scholarship         $ 32,450            $ 32,200
  include the new or the corrected information. Without new or                    work opportunity                    1,780             1,030
  corrected information, however, there will not be any basis for                 local community scholarship             0             1,000
  reconsideration.                                                                total aid                      $ 34,230            $ 34,230

  Before you write to request our reconsideration, however,                       Conversely, adjustments made to include merit-based outside
  • Please keep in mind that we have already offered you all that we              scholarship in our aid award will be reversed if you do not receive
    can—ours is not a process that relies on appeals but instead our              these anticipated funds.
    best aid offer is our first offer. We carefully read your
    financial aid application and have already taken into account               “We found a website on the Internet that allows us to determine
    all that we can, given our policies and resources.                          our eligibility for financial aid. Why doesn’t Swarthmore’s
  • Carefully read the entire Financial Aid Handbook before you                 assessment match that?” or “My federal Student Aid Report says
    consider writing to us.                                                     I am eligible for federal aid....”
  • Please realize that the federal aid eligibility formula is not in any         On-line calculators do not factor in Swarthmore's policies and
    way related to the College’s careful and thorough need analysis.              practices. Those calculators cannot handle the complications
    Our decision about the distribution of Swarthmore’s aid                       when parents have an interest or involvement in a business,
    resources is not determined nor influenced by the federal eligi-              when income is derived from rental property, or when parents
    bility process—only state and federal aid is. Rather, we use                  maintain separate households, or other special circumstances.
    your PROFILE form, your family’s financial statements, and                    Only after our experienced and knowledgeable aid administra-
    College procedures and policies to assess your family’s                       tors carefully read each applicant's file can Swarthmore make the
    capacity to help you.xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx                        corrections and extra allowances or more generous approaches
                                                                                  we find so appropriate in reaching our fair and equitable aid deci-
“I have an opportunity to volunteer next summer (or a low-                        sions for our families. The federal allocation process is used only
paying internship, etc.), or I will attend summer school and will                 to determine your eligibility for federal or state aid, and cannot
not be able to save the amount the College expects. How can I                     influence our Swarthmore Scholarship decisions. Of course, if
fill that gap?”                                                                   you are eligible for federal aid (after we perform the required
   The College cannot offer additional scholarship if a student                   verification of your FAFSA data) you may take advantage of fed-
   chooses not to work, is unable to work, or earns less than the                 eral aid programs. Only Swarthmore can make decisions about
   standard contribution. However, you may work more during the                   the fair distribution of the College’s financial aid.
   academic year or you may borrow additionally through the fed-
(Answers to some often-asked questions, continued)
“May I pay my Swarthmore bill for tuition, fee, room or board “I want to study away next year/semester. Is financial aid
using my earnings from my campus job?”                              available for that purpose?”
  It is expected that you will use your campus earnings to help       Yes. College aid can follow you to our domestic exchange
  with your personal/incidental expenses but not your College bill    programs, as well as to many programs of study abroad. No aid
  since your bill for those direct charges must be paid before each   can follow you abroad automatically, however, so be certain to
  semester begins.                                                    work with the foreign study office to arrange for approval of aid
                                                                      consideration for study abroad. Note: Most study abroad pro-
“I didn’t live at home this summer and used most of my summer         grams do not offer campus work opportunities so you may wish
earnings for my living expenses away from home. Also, since my        to borrow additionally to fill that gap. Let us know if you’ll want
parents helped with the expense of my maintaining my own              to borrow more for that reason. Your eligibility for our support
apartment in the summer, they don’t have as much to help pay          during study abroad will be based on Swarthmore's actual
the Swarthmore bill. May I receive additional Swarthmore              charges and allowances for books and personal expenses as if
Scholarship to fill that gap?”xxxxxxxxxxxxxxxxxxxxxxxx                you were on-campus that semester. That allows for a more gen-
  No. Additional scholarship is not offered when a student main-      erous budget for your study abroad since you will not actually
  tains a summer residence separate from parents. We expect that      be paying our student activity fee that semester and programs
  you will live in your parents’ home during the four months you      abroad rarely expect students to buy many books. This leaves
  are not at Swarthmore. We recognized that expense when we           room for the expenses you might face for any needed inocula-
  assessed your parents’ fair share of your Swarthmore expenses.      tions or travel visas.
  If you live on your summer earnings or your parents help you
  with your separate residence over the summer, you and they
  may borrow additionally for the academic year to fill those gaps.

“I understand that the award letter shows all expected expenses                       To help with your financial planning, fill in the blanks below.
and all resources, but not all of those expenses are on my                            Using this chart you can calculate how much of the College bill
College bill. What must I pay directly to Swarthmore for the                          you and your parents need to pay for the year. Incoming students
2010-11 academic year?”                                                               considering aid offers from other schools may wish to use the
  We have made assumptions about who can contribute how                               extra columns to compare our aid award with those from the
  much to your Swarthmore bill in putting together our aid                            other schools. The bottom line of the chart is the amount you and
  award. Now you must put aside our assumptions and decide                            your parents need to pay for the 2010-11 academic year. The PLUS
  who in the family will contribute what amounts. Decide                              Loan or the monthly payment plan, described on page 11, can be
  whether you will work, whether you will borrow, etc.                                used to meet this remainder.

                                                                               SWARTHMORE                  OTHER                     OTHER
                                                                               COLLEGE                     SCHOOL                    SCHOOL
  Total 2010-11 bill
  (include tuition, activity fee, room & board only)                           $   51,500                  $_____________            $_____________

  Enter scholarship/grant amounts below:
   • less your SWARTHMORE SCHOLARSHIP . . . .                                      ______________          $_____________            $_____________
   • less your federal SEOG GRANT . . . . . . . . . . . . . . .                    ______________            _____________           _____________
   • less your expected federal PELL GRANT . . . . . . .                           ______________            _____________           ______________
   • less your expected STATE SCHOLARSHIP . . . . .                                ______________            _____________           ______________
    • less OUTSIDE SCHOLARSHIPS such as
      National Merit, church or community awards,
      or parents’ tuition benefit. . . . . . . . . . . . . . . . . . . . .         ______________            _____________           ______________

  Enter loan amounts below:
    • less your PERKIN LOAN. . . . . . . . . . . . . . . . . . . .                 ______________            _____________           ______________
    • less your federal DIRECT STAFFORD LOAN
            -- minus the . 5% fee . . . . . . . . . . . . . . . . . . . .          ______________            _____________           ______________
  Difference between the bill and all aid resources =
  the amount your family pays to the College—                                  $______________             $_____________            $_____________
  half each semester

                                                                             fall portion       spring portion
  SWARTHMORE BILL EACH SEMESTER =                                        $____________ + $____________
  (remember that books are not included in this figure)

Students who wish to defer all or part of their Swarthmore costs            Before you consider these options, consider the total educational
may be interested in the long-term, low-interest educational                expenses you need to meet for the academic year. For 2010-11 the
loans, monthly payment plan, or campus job opportunities                    bill for tuition, student activity fee, room and board will total
described below. All families, whether receiving scholarship/               $51,500. In addition to these actual expenses, we estimate that
grant support from the College or meeting all College costs on              you will need to spend about $1,150 for books and related aca-
their own, may use one or more of these programs. We have                   demic supplies and up to $1,120 for personal expenses. You
described the kinds of financing available, to whom, and at what            should plan for at least two round-trip fares between your home
cost. We hope that you and your parents will review these                   and the College. (Remember that campus activities such as
options carefully and will call on us if you need help with your            movies, parties, lectures, athletic events, and concerts are open to
financial planning.                                                         all students without additional charge.)

FEDERAL DIRECT STAFFORD LOAN—for students                                   Who determines my federal Direct Stafford Loan
  Up to $5,500 available to freshmen                                        eligibility?
  Up to $6,500 available to sophomores                                      Although every U.S. student may borrow through the federal
  Up to $7,500 available to juniors                                         Direct Stafford Loan program, the College must determine your
  Up to $7,500 available to seniors                                         eligibility for the federal subsidy of the interest while you are
                                                                            enrolled. If, according to federal regulations, you are eligible for
The federal DIRECT STAFFORD LOAN is a long-term, low-                       the interest subsidy, your federal Direct Stafford Loan will be
interest educational loan. Eligibility for a Direct Stafford Loan is        interest-free during your full-time enrollment (during graduate
determined by the College, using federal guidelines. Family                 school as well). If you are not eligible for the interest subsidy,
income, family size, asset strength, and number of children in              then interest will accrue on your unsubsidized federal Direct
college, etc., form the basis for the determination of your federal         Stafford Loan during your enrollment. In either case, you will not
eligibility. See our website about federal Direct Stafford Loans at         need to begin repaying the loan until six months after you leave—click on “Direct Stafford                   school (or until after graduate school, if you arrange for that
Loans” in the front page menu on the left.                                  deferment).

How to apply for a federal Direct Stafford Loan:                            What is the interest rate for federal Direct Stafford
• Incoming students: We will mail you a federal Direct Stafford             Loans borrowed for the 2010-11 academic year?
Loan application packet late in May and you’ll apply for that loan          The interest rate is fixed at 4.5% for federally-subsidized Direct
on our website.                                                             Stafford Loans, and 6.8% for unsubsidized federal Direct
                                                                            Stafford Loans for the 2010-11 academic year.
• Previous borrowers: If you borrowed through the federal
                                                                            Please note: One half of the amount you borrow—less the . 5%
Stafford Loan program during the 2009-10 academic year then
                                                                            federal origination fee — will be credited to your College bill
you must complete a federal Direct Stafford Loan Master
                                                                            each semester. You may subtract the fall half of your loan from
Promissory Note which serves you throughout your college (and
                                                                            your fall bill (and the spring half from your spring bill).
graduate school) years. We’ll process your loan for the 2010–11
academic year using the request you entered in #21 on your
“Swarthmore Financial Aid Request” form. If you want to change
                                                                            About federal Direct Stafford Loan repayment:
                                                                            Borrowers do not need to begin repayment until after they leave
that amount, please contact our office.
                                                                            Swarthmore and repayment can be deferred during graduate
                                                                            school as well. A borrower’s repayment obligation will be about
• Upperclass students who have not previously borrowed:
                                                                            $10 each month for every $1,000 borrowed. Special programs to
Please follow the link and instructions found at:
                                                                            describe in detail each borrower’s repayment opportunities and
                                                                            requirements are offered in the borrower’s first year and then
                                                                            again in the spring of the borrower’s senior year. Other specific
                                                                            details about federal Direct Stafford Loan repayment are offered

FEDERAL DIRECT PLUS LOAN—for parents                                           What is the federal Direct PLUS Loan interest rate?
up to $51,500 available each year                                              The federal Direct PLUS loan interest rate will be a fixed 7.9%
The federal PARENT LOAN FOR UNDERGRADUATE                                      for the 2010-11 academic year or beyond.
STUDENTS, the federal Direct PLUS Loan, offers parents long-
term educational loans. Parents “who do not have an adverse                    The federal Direct PLUS Loan will be disbursed in halves—half
credit history” will be welcome to make use of the Direct PLUS                 at the beginning of each semester. NOTE: A federal origination
Loan.                                                                          fee of 2.5% of the loan request will be subtracted before the loan
                                                                               is credited to your bill.
Direct PLUS Loans can be used to cover your full Swarthmore
bill (less any aid you are receiving). Repayment of a Direct PLUS              What if parents apply for but are denied
Loan may extend over a period of 10 years and must begin about                 a federal Direct PLUS Loan?
a month after the loan is disbursed. At the 7.9% interest rate, a              Additional but unsubsidized federal Direct Stafford Loan funds
borrower’s repayment obligation will be about $12 each month                   are available to students whose parents apply for a federal Direct
for every $1,000 borrowed.                                                     PLUS Loan but who are formally denied that loan. If this is your
                                                                               situation, you may request an additional $4,000 if you are a first-
How to apply for a federal Direct PLUS Loan:                                   year student or a sophomore, and an additional $5,000 if you are
Parents can start the application process by following the link and            a junior or senior. (In accordance with federal regulation, this
the instructions found at (see                 additional loan is available to you only if your parents are denied
the link at the left on our homepage). Please keep in mind that                the federal Direct PLUS Loan).
the application process can take several weeks.

SWARTHMORE COLLEGE MONTHLY                                                     CAMPUS WORK OPPORTUNITIES
PAYMENT PLAN                                                                   Of our 1,500 students, about 1,200 work part-time on campus
up to $51,500 available each year                                              during the academic year (and only about half of those are
SWARTHMORE COLLEGE offers parents a flexible plan for                          students receiving financial aid). The Student Employment Office
paying educational expenses through regularly scheduled pay-                   (SEO), under student direction, will provide a list of on-campus
ments over a period of 10 months if you start the plan in May or               employment opportunities such as those in the library, dining
8 payments if your start the plan in July. Although no interest is             hall, admissions office, and other administrative or departmental
charged, a participation fee of $60 is required. If $10,000 is budgeted        offices. You must arrange for your own job, but the SEO will help
through us, the monthly payment over 10 months is $1,000. If                   you with both on-campus and off-campus opportunities (translat-
$2,000 is budgeted, the monthly payment is $200. You can                       ing, yard work, child care, etc.) Incoming freshmen will be
discuss the plan or request the application by calling the College             mailed the SEO list of jobs in July and will be invited to infor-
students accounts manager, at 1-610-328-8396. The monthly                      mation sessions during orientation in the fall. Our SEO co-direc-
payment plan information brochure will be mailed to incoming                   tors will help you to complete necessary paperwork in the fall.
students in April and to returning students in July.

                               HOW SOME SWARTHMORE FAMILIES MET EXPENSES
 CHRIS’s family did not want to borrow at all, but did want the                expenses and to pay for laundry soap and toothpaste, etc.,
 comfort of a monthly payment plan. Chris received an external                 through the year. Her summer earnings as well as a portion of
 National Merit Scholarship of $4,000 each year and his parents                her savings were used toward the College bill. Joan sought
 budgeted $40,000 through the College’s monthly payment plan.                  $5,500 through the federal Direct Stafford Loan program, and
 His parents paid $4,000 each month for 10 months through our                  her parents used $10,000 of their income and $2,000 of savings
 payment plan. Chris paid the remainder from his savings and                   to meet the remaining cost.
 met his own personal expenses with his summer earnings and
                                                                               DAVID’s family wanted to borrow to cover all of David’s
 by working about 7 or 8 hours weekly on campus.
                                                                               Swarthmore expenses. The long-term, variable-interest
 Since JOAN and her parents needed our help, she received an                   loan available through the federal Direct PLUS Loan was most
 award of financial aid from the College totaling $35,400 (the                 attractive to them. They borrowed $45,200 and repaid $542 a
 average Swarthmore aid award during 2009-10). Joan and her                    month over a 10 year period. David supplemented his parents’
 parents decided to share the burden of the remaining cost. Joan’s             loan with his savings, his summer earnings, and a $7,500 unsub-
 earnings from her campus job were used to cover her book                      sidized federal Direct Stafford Loan.

                                                                   FEDERAL DIRECT PLUS LOAN                  SWARTHMORE
   AVAILABLE          FEDERAL DIRECT STAFFORD LOAN                     (PARENT LOAN FOR                    MONTHLY PAYMENT
    OPTIONS            (SUBSIDIZED OR UNSUBSIDIZED)                UNDERGRADUATE STUDENTS)                      PLAN

WHO OFFERS            U. S. Department of Education                U. S. Department of Education           Swarthmore College

TO WHOM IS IT         students                                     parents                                 parents

ON WHAT BASIS         available to all students                    available to parents who do not have    available to anyone
IS IT AVAILABLE?                                                   an “adverse credit history”

WHO DETERMINES        Swarthmore College using federal             U.S. Department of Education            no eligibility
ELIGIBILITY FOR       guidelines                                                                           requirements

HOW MUCH              • up to $5,500 for first years               up to $51,500 each year                 $51,500 can be
IS AVAILABLE?         • up to $6,500 for sophomores                                                        budgeted each year
                      • up to $7,500 for juniors
                      • up to $7,500 for seniors
WHAT IS THE           • The interest rate for the 2010-11          interest rate now fixed at 7.9% for     no interest is charged
INTEREST RATE?          academic year will be 4.5% for federally   new loans                               but there is a $60
                        subsidized Direct Stafford Loans, and                                              participation fee
                        6.8% for unsubsidized federal Direct
                        Stafford Loans.

WHAT FEES WILL BE     . 5%                                         2.5%                                    none

WHEN DOES             For all borrowers repayment is deferred      Repayment begins soon after the         Repayments are in equal
REPAYMENT BEGIN?      until the borrower leaves school             loan is disbursed                       amounts beginning in
                                                                                                           May, June or July

HOW LONG MAY          up to 10 years                               up to 10 years                          up to 10 months
BORROWER TAKE         (excluding deferment periods)

HOW MUCH IS           After borrower leaves school monthly         Monthly payment will be about $12       • 1/10th of the total
THE MONTHLY           payment will be about $10 per                per month for every $1,000 borrowed—      amount budgeted if
REPAYMENT?            month for every $1,000 borrowed—             at the current interest rate              May start,
                      at the current interest rate                                                         • 1/9th if June start,
                                                                                                           • 1/8th if July start
WHEN SHOULD           Submit an application                        Submit an application                   Submit an application in
APPLICATION           in May or June if new borrower               in May or June                          May, June or July to our
BE STARTED?                                                                                                student accounts office

WHO WILL PROVIDE      Incoming students:                           New and previous federal Direct PLUS    Call our student accounts
AN APPLICATION?       • We will mail you a federal Direct          Loan borrowers should follow the link   office at 1-610-328-8394,
                        Stafford Loan instruction packet in May.   and instructions found at:              if you have questions or
                                                                  read about the program at
                      Previous Stafford borrowers:                                               
                      • We will process your loan based on                                                 Admin/business/index.html
                        the request you entered in #21 of your
                        Swarthmore Aid Request form after you
                        complete a new federal Direct Stafford
                        Loan promissory note on our website.

                      Upperclass students who
                      have not previously borrowed:
                      • Please follow the link and instructions
                        found at our website.


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