Our Approach to Financial Aid
Carleton’s mission is to provide an exceptional undergraduate liberal arts education. We recognize that it takes significant resources to have the best faculty, to keep class sizes small, to have outstanding facilities and equipment, and, most importantly, to enroll the best and brightest students regardless of their family’s financial situations. Our financial aid program is designed to support these goals to make Carleton affordable and worth the investment.
Financing College is a Partnership
Carleton approaches aid as a partnership with families, including guardians and students. We start by determining what families can contribute using the CSS Profile and FAFSA. Carleton’s financial aid package of grants, loans, and student employment fills the gap between what families can pay and the remaining cost of attendance.
Need-based Aid
We prioritize need-based aid
All admitted students have demonstrated a high degree of merit. Given that, we believe the most equitable way to distribute aid is based on need, as opposed to merit. Nearly all of the financial aid at Carleton is distributed as need-based aid.
About 40-45% of families pay the full cost of attendance, and around 55-60% receive financial aid that is largely grants (no repayment needed), as well as a manageable amount of loans and work-study.
An Investment in Your Future
Within six months of graduation, 99% of the Class of 2024 were working, volunteering, or attending graduate or professional school. Just as importantly, alumni attest to the worth of the Carleton experience in terms of leadership both professionally and in their communities, a record of service, lifelong learning skills and interests, and their personal values. It is these characteristics that are difficult to place a monetary value on but which Carleton students, alumni, and parents believe are worth the investment. Like other major investments, the educational experience is made for the long term and appreciates in value.
We believe that students and their families should share the cost of college with Carleton.
To figure out how much your family can afford to pay on an annual basis, we look closely at the financial information you give us on two forms:
- FAFSA: This form helps you get money from the government (Federal and State funds).
- CSS Profile: This form helps us decide how much financial aid you need overall. We mainly use this one because we think it gives the fairest and most accurate picture of your family’s needs.
What if things are complicated?
We know that every family’s situation is a little different.
If you have special circumstances (like a recent job loss or high medical bills) that the forms don’t cover, your family can ask for an additional review.
Figuring Out Your Total Income
- We Start with Taxes: We begin with the main income number on your family’s federal tax form (called AGI). We look at income for both parents and the student.
- We Add Money Back: We add back some money that was not counted as income on your taxes but still demonstrates resources that can be considered as options to pay for college.
- This includes money that isn’t taxed, like Social Security or child support.
- It also includes money from business deductions or investment losses that were used to lower taxes but don’t affect your ability to pay.
- Result: The total income we use is often higher than the income on your tax forms.
What We Subtract (Allowances)
Before asking a family to contribute, we subtract money for necessary expenses. We call these allowances:
- Taxes: Money already paid for federal, state, and local taxes.
- Medical Bills: An allowance if your family has very high medical or dental costs.
- Work Costs: Money to cover expenses (like childcare or transportation) if both parents work, or if a single parent works.
- Savings for Siblings: An allowance that recognizes your family needs to save for younger children’s future college costs while sending an older child now.
- Basic Living Costs: This is an allowance for your family’s basic needs like food and shelter. If a family’s income is below this level, they don’t have to contribute any money for college.
- Private School Tuition: An allowance for money spent on private elementary or high school tuition.
The Family Contribution
- After we subtract all the allowances, we figure out your Available Income.
- We then ask the family to pay a percentage of that Available Income toward college. The more Available Income you have, the higher the percentage we ask for (it ranges from 23% to 47% on the highest amount).
- In addition to the income calculation, we also complete a similar process that looks at a family’s total assets (excluding retirement). Ultimately, family’s can expect to contribut 3-5% from assets annually toward educational expenses.
- Student’s Part: We assume students work and save money. We expect students to contribute at least $2,000 to $2,100 per year from their own income.