Q: Our school recently received an application for financial aid that listed only one income. After we asked for clarification, we learned that one of the student’s parents has chosen not to work. We’re at a loss on how to evaluate this particular situation—do you have any advice?
A: For any question of financial aid, you need to start with your school’s mission. While some schools’ missions may agree with (or almost require, in some cases) a parent staying at home, most schools begin to take issue with a parent choosing to stay out of the workforce once all children are of school age.
The reason for the issue—and, I suspect, the reason for your school’s uncertainty in making an aid decision—is that by choosing not to work, a stay-at-home parent makes a decision that directly impacts the family’s ability to pay for school tuition. By awarding aid to these families, you may be essentially subsidizing a lifestyle choice that may not be in the school’s best interest.
When evaluating a single-parent income household, consider the following questions.
- Why is the parent not working? In other words, is there a pressing need that keeps a parent at home, like an elderly parent or a special-needs child? Is the parent physically unable to work, due to medical problems? Or, has the family decided that a parent can and should be a homemaker in place of generating a traditional income?
- Schools should expect that a family makes every reasonable effort to pay for their children’s education. However, that begs the question: How does your school define a “reasonable effort” to afford the tuition? This definition will depend on your each school's culture and mission.
- Was the parent working when the student first enrolled? If so, this is a dramatic life change that should be examined. Consider whether the family chose to have one parent remain at home, rather than driven to it due to previously discussed extenuating circumstances. In that context, it would not be unreasonable to claim that the family has breached their original contract of admission by changing the financial context through which the initial admission decision had been made.
- How will other families react when you offer aid to a single-income family? This question requires a dual perspective and a dollop of perceived fairness. First, consider the potential reaction of other families requesting aid, many of which are dual-income and still find it difficult to pay tuition. Despite admonitions to avoid discussing awards, word often leaks out. Could other families find it insulting, should you offer aid to a single-income family and not their own dual-income? The other perspective is that of families who pay the full tuition, and from which the financial aid dollars are often drawn. Your school must be a responsible steward of what was once another person’s funds, which means careful stewardship of financial aid awards.
With these questions in mind, school policy should be written and made public in such a way that all families applying for aid understand the rules and how they will be applied across the board. That way, the school maintains its “fairness” in the decision-making process, while having a policy it can point to as a defense against those who claim potentially prejudiced outcomes. As with all your school’s policies, rules regarding financial aid should be made with the school’s mission at its heart and through consultation with your school’s legal counsel.
Have your financial aid questions answered! Submit your issue, and we may answer it in a future column.
Additional ISM resources:
The Source for Private School News Vol. 14 No. 7 FAST Answers to Financial Aid Questions: "Mission Appropriate" Aid?
The Source for Private School News Vol. 14 No. 6 FAST Answers to Financial Aid Questions: Effective Appeals Process?
The Source for Private School News Vol. 14 No. 8 FAST Answers to Financial Aid Questions: Single-Parent Income?
Additional ISM resources for Gold Consortium members:
I&P Vol. 36 No. 4 The Three Types of Need-Based Financial Aid
I&P Vol. 40 No. 12 "Rainy Day" Financial Aid: The Need for Proper Communication
I&P Vol. 39 No. 13 Strategic Financial Aid: Filling the Empty Seat
I&P Vol. 35 No. 15 The Real Cost of Financial Aid
