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Not only do you want to be excited about the college you choose to attend, but you want to make sure it's a smart financial decision!
Not only do you want to be excited about the college you choose to attend, but you want to make sure it's a smart financial decision!
College Financing Plans (also known as "Award Letters" or "Award Packages") are distributed by the college(s) you were accepted in to and listed on your FAFSA. The Plan breaks down the cost of the specific college based on your Student Aid Report (from the FAFSA).
The Award will have the Cost of Attendance and your financial aid (scholarships, federal grants, and loans) for one year. The aid is then split between the Fall and Spring semesters.
Be aware of any out of pocket costs that your financial aid may not cover! Use this simple equation to figure out how much you will owe out of pocket:
Cost of Attendance - Financial Aid Total = Out of Pocket Cost
Cost of Attendance - Financial Aid Total = Out of Pocket Cost
The first half of your out of pocket cost will be due on the first day of Fall classes and the second half will be due on the first day of Spring classes.
Don't let the Out of Pocket Cost scare you into not going to college. You just need to be smart about it! Out of Pocket costs can be covered by additional scholarships or savings from a summer job.
Review the examples below to get a better understanding of how to interpret your College Financial Plan!
Example 1: You may want to rethink...
Example 1: You may want to rethink...
This financial aid letter from Success University does look quite promising! Receiving $37,600 sounds fantastic, right? However, there a couple things to be cautious of.
What's the out of pocket cost? Look to the right for a break down.
(Cost of Attendance is quite exaggerated- this is a good example of how much it may cost to attend a college out of state)
Scholarships & Grants = Free money! You don't need to worry about repaying this money.
Be a bit cautious when taking Work Study and Parent Plus loans into considering how much a college will cost. You still have to find and apply for a work study job. Parent Plus loans can be helpful, but your parent has to apply for this loan. The loan is then taken out in your parent's name and they will have to pay it back.
Loans = Money you have to pay back. Remember, federal student loans always have lower interest rates than private student loans!
Example 2: You can do this!
Example 2: You can do this!
Scholarships & Grants = Free money! You don't need to worry about repaying this money.
Loans = Money you have to pay back. Remember, federal student loans always have lower interest rates than private student loans!
This Financing Plan is much more affordable than Success University's. Covering the remaining 3,500 is possible by applying for scholarships or saving money by having a summer job!
Helpful Hints:
Helpful Hints:
Colleges will often list "Books and Supplies" or "Personal costs"; however, these are often estimates. If you buy all of your books used, your costs of "Books and Supplies" may be a lot less. Or, maybe if you travel home a lot, "Personal Costs" may be greater than the listed amount. If it helps, you may choose to leave out these categories in your calculation (only include tuition and housing).
Work Study is a great opportunity for many students! But, your out of cost payment is due on the first day of the Fall semester. Meaning, you may not have out of pocket costs covered yet. Work Study is like a "normal job", meaning the money you earn will go directly to your bank account. Work Study can be a great way to cover book costs or personal costs!
Parent Plus Loans listed on College Financing Plans are not a guarantee. Your parent must apply for the loan on the U.S. Department of Education's website. If accepted, the loan is taken out in your parent's name. This may not be a great option for all families. Although, if you know your parent will be denied, you can still have them apply. If they are denied, you (the student) may be offered more federal unsubsidized loans.
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