Published: August 27, 2009

The Financial Services office at Fordham College at Lincoln Center (FCLC) has been criticized for what is being called “poor preparation” of the release of financial aid packages to students. As of August 24, some students had not received their financial determinations, leaving loans unprocessed and many students and parents concerned that they will find themselves unable to secure loans and grants. Financial aid officials say that this year saw little to no change in the time frame of the release of financial determinations, despite a heavier workload, and that Fordham is doing everything possible to remain an “affordable” education.

According to Financial Services’ official policy, students’ financial aid packages are assembled once all necessary information, including tax forms, W2’s and other financial documents are received. At this point, determinations are made and sent out to students, who are then required to accept or deny the financial aid offered before any Stafford or PLUS loans are processed.

Some students say that though they submitted all necessary information, they had to wait much longer for their determinations than in previous years.

Amanda Sadlowski, FCLC ’11, said she was still without a financial aid package two weeks before the start of classes.

“This [financial aid process] has honestly been one of the most frustrating experiences of my life,” Sadlowski said. “I sent in my FAFSA all the way back in March, way before the July 1 deadline. It wasn’t until late May that they notified me that I needed to send in my tax records because I was selected for random verification. This was fine, because that had happened to me both previous years and I still got my financial aid package by early June. This time, however, not so much.

“I think it was late June when I started calling the office and asking them where my financial aid was,” Sadlowski said. “They kept saying they were still working on the packages and continually gave me dates when it would be ready. I kept calling them once these dates went by and they kept saying it would be another week or two.”

Sadlowski said she didn’t panic over the delay in the release of her financial aid package until she was presented with a bill from financial services.

“Obviously [my family and I] can’t pay it because we don’t know what our financial aid is, so we haven’t been able to apply for a loan,” she said.

Bills from financial services were sent out in early August, and many did not mention any financial aid associated with the student’s account. Constantine Kokinakis, FCLC ’11, received a bill before he was made aware of his financial aid. It was only after “panicking” and “navigating through my.fordham, trying to accept my awards,” that Kokinakis was made aware of his financial aid package.

Peter Stace, vice president for enrollment at Fordham, said that the Office of Financial Services released packages on a schedule comparable to previous years. “As of August 12 this year, over 3,334 aid awards have been provided to students, compared with 3,289 last year,” Stace said.  “Students who have not yet accepted their aid packages are the ones experiencing delays and the aid office is ready to respond as soon as the student takes action.”

Natasha Pascetta, FCLC ’11, said that she spent weeks on the phone with the financial aid office looking for her financial determination. “Every time I’ve called, I’ve been put on hold for more than 10 minutes,” she said. “Finally, on August 19, I received my financial determination.”

Stace pointed to a new computer system implemented in the financial services office, and the “increased workload” it created for the staff, as one reason the office was not more efficient this year than in years past, but maintained that there wasn’t any significant delay within the financial services office.

“Our intention was to mail awards earlier than last year but they were issued on the same schedule as last [year] due to issues involved with the introduction of new processing systems and more stringent awarding requirements,” Stace said.

“The financial aid process and the timing of awards is complex for families [because of] the information they must provide, and for the University [because of] the federal regulations with which it must comply,” he said. “Most financial aid packages include an element of federal aid, which includes a mix of grant and loans. Those awards are closely regulated and require action by students as well as the University. The University is prohibited from making such awards unless families provide the required documents and award offers are formally accepted.  That leads to delays in the award process until requirements are met.”

Stace added that students do not have to worry about their studies being interrupted by unfulfilled financial obligations. “Unlike many universities Fordham permits students to begin the semester and attend classes even if all financial obligations have not yet been met for that term,” Stace said.

Angela VanDekker, associate vice president of Financial Services at Fordham, pointed to other factors that complicated the financial aid process, but also denied a delay in the release of financial aid packages. “Additional work is also mandated by the federal government and other new initiatives,” VanDekker said. “For example, the Academic Competitiveness Grant (ACG) and SMART Grants were extended to additional populations and this required extra processing this year. The federal government changed the housing codes they were using on the federal application and this resulted in changing the way we were treating the data.” However, like Stace, VanDekker added that “students for whom all data has been received have been awarded.”

A major concern among students still waiting for their packages is the ability to secure a loan in time to pay the bill.

“I’m worried how long it will take to actually get a loan,” Sadlowski said, “and if I can even take out Stafford Loans this late in the game.”

Stace said that there is “no cause for panic among students who are late in loan processing.” He explained, “The Stafford Loan is the program most commonly used by families and that is an entitlement so lateness does not incur any risk of denial unless the term ends before the application is filed.”

“Some private loans also require certification and for similar reasons delays have been experienced in that realm. Such loans are processed electronically in most cases and the turnaround time is as little as two or three days if everything is in order.  Fordham is currently certifying Stafford Loans for students who are just now accepting their aid package on the same day the student accepts the aid package. PLUS Loans and private loans are certified within a couple of days of their being filed with the financial aid office when all required information is in order,” Stace said.

Fears among students were not limited to timeliness of financial aid, but availability as well.  An article in the August 19th issue of the Wall Street Journal pointed out several states whose budget stalemates have put many grants and other financial aid funds in danger. “Even where state budgets are more secure, parental layoffs and shrinking savings accounts have imperiled college funding for many, sending students and their parents scrambling to find last-minute sources of money for school,” the article said.

According to Stace, Fordham has taken steps to put itself in a more secure position than many other schools.

“The University had reserved $1.2 million to assist students in need. Those increased aid awards have been carried forward to next year for students who continued to require that assistance. The tuition rate increase was limited to 4.5 percent, one of the lowest rates of increase in recent memory.  The commitment to make Fordham affordable for families in this recession is genuine and pervasive,” Stace said.

VanDekker echoed Stace’s confidence. “There was not a cut in [financial] aid [for 2009-2010],” she said. “Fordham increased the aid available to undergraduate students by approximately 8.5 percent.  We also had an increase in work-study funding.”

“Father McShane [has] stated that one of the top financial priorities of the University was to ensure that currently enrolled students be able to continue their education without interruption. Fordham has been committed since the beginning of this economic downturn to be as helpful as possible to families impacted by the recession,” Stace said.