Comparing Financial Aid Packages After you have been accepted to a college and submitted your financial aid application, you will receive an award letter from the school. The award letter outlines all the financial aid you qualify for. Each school’s package will be slightly different depending on its costs and the availability of aid. Understanding Cost of Attendance Each school will present its cost of attendance, or the estimated price for one year’s attendance. Cost of attendance is made up of five individual costs: 1. Tuition and fees 2. Room and board 3. Books and supplies 4. Transportation 5. Personal and miscellaneous expenses Tuition is sometimes called a “direct cost” because you must pay it directly to the college in order to attend. Room and board, for students living in campus housing such as dormitories, is also a direct cost that must be paid directly to the school. The other three are known as “indirect costs” and are estimates of what the average student spends. Activity The following pages contain sample award letters. Review them to get an idea of how complicated it can be to decide which college is going to be best for you from a financial perspective. Understand the Difference Between Direct and Indirect Costs Direct costs are charges billed by the school — tuition, fees and sometimes room and board. Indirect costs are estimated expenses that students may have throughout the year, such as books, transportation and personal expenses. While indirect costs may appear on the award letter, they are not billed by the school. When comparing school costs, focus on the direct (billable) costs of each school. Compare the Same Types of Aid Remember that grants and scholarships don’t need to be repaid. Don’t just look at the bottom line for each school; a smaller package that includes aid you won’t have to pay back may be a better deal than a larger package mostly made up of loans. Calculate Your Real Cost Now you can subtract your scholarships and grants from the direct cost at each school. After you calculate your costs after scholarships and grants, consider any other non-loan awards, like work-study. Figure out how much of your remaining costs you can cover with personal savings, earnings or gifts.

Financing Your Education Covering the cost of college can be a challenge, but financial aid can help. The earlier you begin planning for the financial aid process, the more aid you can potentially receive. Financial aid is money made available to help you cover the cost of your college education. Four types of financial aid are available, and each type has its own set of requirements. 1. Grants don’t need to be repaid. They may be based on financial need and can come from a variety of sources. The most common types of grants come from the federal and state government and the colleges. 2. Scholarships are awarded from various sources and, as with grants, you don’t have to pay them back. Most are based on merit — your talents and abilities — while some are based on financial need. 3. Work-study allows you to earn money by working a part-time job on campus. Work-study is an excellent opportunity to gain experience while earning money for your education. Generally, students use their work-study money to cover personal expenses, but it can also be used for tuition payments. 4. Student loans are debts that must be repaid. In most cases, repayment begins after you graduate or leave college. Student loans can be a helpful source of financial aid, but be sure you understand the terms of the loan before you borrow. Seek loans only after pursuing all other forms of financial aid.

Make an Informed Decision Now that you see your out-of-pocket cost to attend each school that offers you a financial aid package, you can decide which school you can afford to attend or how much you’ll need to borrow to cover any remaining costs. Remember, only borrow what you need. Compare College Costs It’s important to assess the costs associated with each college you are applying to. Compare the expenses and financial aid packages to determine which school will offer the best overall value. DIRECT EXPENSES (Billed by the college) Tuition$30,110Tuition$ 6,408 Student Fees$ 810Student Fees$ 589 Room and Board$ 8,145Room and Board$ 7,472 (A)TOTAL= $39,065(A)TOTAL= $14,469 INDIRECT EXPENSES (Estimated expenses) Books and Supplies$ 984Books and Supplies$ 1,014 Transportation$ 2,930Transportation$ 3,438 Miscellaneous$ 500Miscellaneous$ 750 (B)TOTAL= $ 4,414(B)TOTAL= $ 5,202 (C)TOTAL EXPENSES= $43,479(C)TOTAL EXPENSES= $19,671 (A) + (B) (Direct and Indirect) RESOURCES Grants and Scholarships$27,500Grants and Scholarships$ 7,500 Savings$ 3,000Savings$ 3,000 Student Earnings$ 2,500Student Earnings$ 1,800 Money From Parents$ 5,000Money From Parents$ 5,000 Gifts, Other Sources$ 500Gifts, Other Sources$ 500 (D)TOTAL RESOURCES= $38,500(D)TOTAL RESOURCES= $17,800 (C)TOTAL EXPENSES=$43,479(C)TOTAL EXPENSES=$19,671 (D)TOTAL RESOURCES– $38,500(D)TOTAL RESOURCES– $17,800 UNMET EXPENSES= $ 4,979UNMET EXPENSES= $ 1,871 College:Four-Year Private CollegeCollege:Four-Year Public College

Make an Informed Decision Now that you see your out-of-pocket cost to attend each school that offers you a financial aid package, you can decide which school you can afford to attend or how much you’ll need to borrow to cover any remaining costs. Remember, only borrow what you need. Compare College Costs It’s important to assess the costs associated with each college you are applying to. Compare the expenses and financial aid packages to determine which school will offer the best overall value. DIRECT EXPENSES (Billed by the college) Tuition$3,840Tuition$ Student Fees$ — $ Room and Board$3,780Room and Board$ (A)TOTAL= $7,620(A)TOTAL= $ INDIRECT EXPENSES (Estimated expenses) Books and Supplies$ 1,350Books and Supplies$ Transportation$ 2,658Transportation$ Miscellaneous$ 500Miscellaneous$ (B)TOTAL= $ 4,508(B)TOTAL= $ (C)TOTAL EXPENSES= $12,128(C)TOTAL EXPENSES= $ (A) + (B) (Direct and Indirect) RESOURCES Grants and Scholarships$ 5,500Grants and Scholarships$ Savings$ 3,000Savings$ Student Earnings$ 1,500Student Earnings$ Money From Parents$ 1,628Money From Parents$ Gifts, Other Sources$ 500Gifts, Other Sources$ (D)TOTAL RESOURCES= $12,128(D)TOTAL RESOURCES= $ (C)TOTAL EXPENSES=$12,128(C)TOTAL EXPENSES=$ (D)TOTAL RESOURCES– $12,128(D)TOTAL RESOURCES– $ UNMET EXPENSES= $ 0UNMET EXPENSES= $ College:Two-Year Community CollegeCollege:

Make an Informed Decision Now that you see your out-of-pocket cost to attend each school that offers you a financial aid package, you can decide which school you can afford to attend or how much you’ll need to borrow to cover any remaining costs. Remember, only borrow what you need. Compare College Costs It’s important to assess the costs associated with each college you are applying to. Compare the expenses and financial aid packages to determine which school will offer the best overall value. DIRECT EXPENSES (Billed by the college) Tuition$ $ Student Fees$ $ Room and Board$ $ (A)TOTAL= $(A)TOTAL= $ INDIRECT EXPENSES (Estimated expenses) Books and Supplies$ $ Transportation$ $ Miscellaneous$ $ (B)TOTAL= $(B)TOTAL= $ (C)TOTAL EXPENSES= $(C)TOTAL EXPENSES= $ (A) + (B) (Direct and Indirect) RESOURCES Grants and Scholarships$ $ Savings$ $ Student Earnings$ $ Money From Parents$ $ Gifts, Other Sources$ $ (D)TOTAL RESOURCES= $(D)TOTAL RESOURCES= $ (C)TOTAL EXPENSES=$(C)TOTAL EXPENSES=$ (D)TOTAL RESOURCES– $(D)TOTAL RESOURCES– $ UNMET EXPENSES= $UNMET EXPENSES= $ College:

Guest Speaker — Graduate Next week a special guest will be visiting our class., a graduate from will discuss journey through college. As our speaker discusses college experience, there will also be an opportunity for you to ask questions. Your homework this week is to brainstorm at least three questions for our guest’s visit. Write them below and bring them to class next week