Undergraduate Financial Aid
Source: https://finaid.brown.edu/basics/brown-promise/unique-initiatives Parent: https://finaid.brown.edu/
Undergraduate Financial Aid
Additional Initiatives Unique to Brown
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Additional Initiatives Unique to Brown
Brown University supports a range of distinct initiatives to meet a family’s full demonstrated financial need.
These initiatives make it easier for students from moderate-income backgrounds to choose Brown and worry less about accruing debt that might limit their professional choices after graduation.
Starting with all students enrolled for the 2022-23 academic year, Brown will change the calculation of how much some families have to contribute to pay for their child’s education.
The University will eliminate the consideration of a family’s home equity in their primary residence as an asset when calculating a student’s available financial resources.
A primary residence is the primary location where a family resides. This includes a house, townhouse, condominium, apartment, etc,. as long as it is where a family lives. If the family lives in and owns a multi-family home, that home is considered both a primary residence and a financial investment. In this case, the value of the portion of the property in which the student’s family resides, is considered home equity and will be excluded. The other residence(s) are included in the calculation as a family asset for both federal and institutional eligibility.
My family owns and resides in a unit in a multi-family home. Will the equity for the entire property be excluded from my financial aid?
No. The value of the portion of the multi-family residence in which your family lives is considered home equity and the remainder is included as other real estate/investment for considering eligibility in both federal and University need-based aid calculations.
My family owns a home. It is currently not our primary residence because we are living elsewhere (abroad, employee own housing, etc.). Will the home equity be eliminated from the analysis of my financial need?
No. Because your family is not currently residing in the home, it is not considered your primary residence and; therefore, will be included as a parent asset when calculating available financial resources.
If, after initially applying for financial aid, my family re-allocates our savings and investments to pay down the mortgage on our primary residence, will that affect my parent contribution?
No, the amount of home equity that is being eliminated in our financial need analysis is established within the initial review of your financial aid application and will not be adjusted in future years based on any reallocation of assets.
Total Income/Earnings: The family income amount is the Adjusted Gross Income (which appears on the parent’s federal tax return), plus any nontaxable income, business/rental property losses, capital losses, or depreciation on real and/or rental property, as well as business distributions/payments and social security benefits. With total parent income established, we deduct allowances for certain non-discretionary expenses. After allowances, the need-analysis formula determines the percentage of any remaining income to be used for educational expenses. For additional factors considered for income/earnings and allowances, please review the chart under the Parent Income tab.
Typical Assets for a family’s income level usually reflects the sum of the following amounts:
- Cash, savings, checking
- Investments
- Equity in real estate other than the primary residence
- Business net worth
NOTE: Brown does not include assets that are in a qualified retirement plan such as 401k, 403b, IRA, Keogh, or equity in your primary residence
**The Office of Financial Aid reserves the right to make the final determination of the expected family contribution, in consideration of all factors affecting a family’s overall financial situation and ability to pay.
What are typical assets according to Brown?
- Typical assets can include but are not limited to:
- Cash, savings, checking
- Investments
- Equity in real estate other than the primary residence
- Business net worth
- Typical assets do not include:
- Formal retirement (401k, 403b, IRA, Keogh)
- Equity in your primary residence
NOTE: The Office of Financial Aid reserves the right to make the final determination of the expected family contribution, in consideration of all factors affecting a family’s overall financial situation and ability to pay.
How does Brown define “total income/earnings”?
- Family income/earnings can include but are not limited to:
- Adjusted gross income (which appears on the federal tax return)
- Any nontaxable income
- Business/rental property losses
- Capital losses
- Depreciation on real and/or rental property
- Business distributions/payments
- Social Security benefits
NOTE: For additional factors considered for income/earnings and allowances, please review the chart.
What if my parents' total income/earnings have changed due to COVID-19?
- If your family experiences a significant or unexpected change in income/earnings after receiving your initial financial aid offer for the academic year or if you believe there are special circumstances that were not considered in the initial review of your financial aid application, please notify the Office of Financial Aid in writing.
- Use the Appeal Form to help you explain and document special circumstances such as a significant and unexpected change in income due to job loss, salary reduction, or a change in benefits.
Starting with Academic Year 2022-23, the summer earnings expectation for students with a $0 Parent Contribution will be reduced by $1,000. This results in a student receiving a University Scholarship, federal grants, and/or outside scholarships in an amount of $1,000 ($500 per semester) in excess of direct costs for tuition, fees, housing, and food. With this change, Brown scholarships will cover all direct expenses while also supporting personal expenses.
Brown’s highest need students, coming from families with total incomes of less than $60,000 per year and assets less than $100,000, as determined by the Office of Financial Aid, will receive scholarship/grants equal to the amount of standard tuition, fees, room and meals.
- Reduces the amount the student is required to earn over the summer.
- The student arrives on campus with a $0 student account balance.
Brown is also providing University scholarships to families with middle/moderate total incomes and has increased the scholarship awarded to these families. Brown financial aid offers include federal, state and institutional, need-based scholarship, and a Work-Study or Campus Employment component, but no loans.
These University initiatives are determined based on a family’s calculated total income. A family’s total income is determined by the Office of Financial aid through reviewing tax documents and financial aid application materials. Total income is the sum of Adjusted Gross Income plus all untaxed income. Examples of untaxed income include untaxed social security benefits, untaxed business revenue, pension contributions and withdrawals, child support received, etc. Please visit the parent income section of our website for complete details of the determination of total income.
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