FAQ

Frequently Asked Questions

As part of its ongoing commitment to make high-quality education more affordable for undergraduates, Duke University announced in December 2007 it would significantly increase its investment in financial aid for undergraduates. It said the changes will take effect in the fall of 2008 and include all enrolled students receiving need-based aid.

Q. How does Duke determine income?

A. Duke uses a nationally recognized methodology (1) to determine financial aid need and income. Its Financial Aid Office evaluates both taxable and non-taxable income and assets, among other things, to decide whether a student qualifies for aid.

For financial aid purposes, assets are generally considered to include cash on hand in checking and savings accounts, trusts, stocks, bonds, home equity, other securities (e.g., real estate, income-producing property, business equipment and business inventory). These assets are considered in determining the expected family contribution. Assets in formal retirement plans are not considered in the need analysis.

Q. What are the changes Duke is making to enhance financial aid?

A. There are several significant changes:

  • Parents of undergraduate financial aid recipients with calculated annual incomes less than $60,000 will not be expected to contribute to their children's educational expenses.
  • Students from families with calculated annual incomes of less than $40,000 will have loans replaced by grants.
  • Students from families with calculated annual incomes between $40,000 and $100,000 will have their loan packages reduced on a graduated basis. Students from families in the $40,000 to $55,000 range will be offered a $1,000 loan annually. Those in the $55,000 to $70,000 range will be offered a $2,000 loan annually. Those in the $70,000 to $85,000 range will be offered a $3,000 loan annually. Those in the $85,000 to $100,000 range will be offered a $4,000 loan annually.
  • Students from families eligible for aid with calculated annual incomes above $100,000 will be offered a $5,000 loan annually. $100,000 is about the 80th percentile of the national family income distribution.
  • Students receiving financial aid with loan packages will no longer be expected to assume a $500 loan increase with each year of enrollment, unless there is a material change in family circumstances. Their loans will be fixed for each year, amounting to a savings of $1,500 over four years.
  • Currently all financial aid packages contain housing allowances based on the rate for a double, non-air conditioned room. Starting in the fall of 2008, students will receive allowances for their actual housing costs. For students living off-campus, housing allowances will be based on the cost of a shared apartment in Duke's Central Campus Apartments.

Q. Why did Duke make these changes to its financial aid policies?

A. Duke has a long-standing commitment to provide need-blind financial aid to all admitted students to meet the gap between what families are expected to pay and the total cost of attending Duke, including tuition, room, board, books, supplies, personal expenses and transportation. Increasing financial aid has been one of President Brodhead's top priorities since his arrival at Duke in 2004. In 2007-08, the average need-based aid grant is about $26,700 out of a total cost of about $46,000 to attend Duke.

In 2005, Duke launched a $300 million Financial Aid Initiative to raise new endowment of $230 million for undergraduate need-based aid, as well as $15 million for athletic scholarships and $55 million to support graduate and professional school students. Brodhead said about $240 million of the goal has already been received or pledged.

Q. How much money will these changes save the average student who receives financial aid?

A. The new initiatives are projected to increase average grant support $2,500 annually for each need-based aid recipient, reducing the average costs to these students and their families by $10,000 over four years.

Q. Whom do these changes affect?

A. They apply to prospective U.S. undergraduate students enrolled in Fall 2008 who qualify for need-based aid. The policy does not apply to graduate students, professional students or international students.

More than 40 percent of Duke undergraduates receive need-based aid to help reduce their expenses. Almost all students receiving need-based aid will pay less to attend Duke as a result of these changes.

Q. Do I have to file a special application form to qualify for these new enhancements?

A. No. Duke's standard financial aid application materials, which are available at http://dukefinancialaid.duke.edu, are sufficient. The application deadline for prospective students is March 1, 2008. The deadline for enrolled students is May 1, 2008.

Q. Does the new policy affect my student contribution or self-help expectation?

A. Although the expected Summer Earnings Requirement for students will not change, the announced reductions in packaged loans will reduce self-help amounts significantly.

Q. What is meant by packaged loans?

A. Students receiving financial aid are given what is often called a financial aid package, or a combination of aid, generally from a variety of sources. Typically a student receives a package that includes grants, student loans and work opportunities. A packaged loan is part of the "package" offered by the college.

Q. What is meant by self-help amounts?

A. Self-help amounts are the funds that a student is expected to contribute to his or her education. They can include loans that are low-interest, deferred payment and subsidized, as well as work-study jobs. Subsidized loans may be deferred until after the student completes his or her education. Work-study jobs provide eligible students with campus earnings opportunities. Funds earned through student jobs are paid directly to the student and may be used to support educational or personal expenses.

Q. What is meant by demonstrated need?

A. Demonstrated needs means the difference between the cost of college attendance and the defined ability of a student and the student's parents to pay that cost.

Q. What is meant by parent contribution?

A. Parent contribution means the amount that a dependent student's parents can reasonably be expected to contribute toward that child's educational expenses, as determined by aid formulas and a review of individual circumstances as provided by the family. In the case of a student whose parents are divorced, Duke takes into account the income of both parents, including the non-custodial parent.

Q. Where can I get additional information about the new policy?

The Duke Financial Aid Office is your best source to determine how the changes will affect your situation.

 

1. Duke belongs to the 568 President's Group, a group of colleges and universities that admits all students on a need-blind basis -- that is, without considering the financial circumstances of the student or the student's family in the admissions process.