As a high school student preparing for college, one of the most exciting moments is getting acceptance letters. However, this can sometimes be stressful too, as you now have to make a decision on a school.While there are many factors that might contribute to your overall choice, your financial aid offer will likely be a major deciding factor. You will likely receive different offers from each school, each with varying amounts of financial support, and it can be tricky to figure out which one is the best deal for you. With tuition and other expenses quickly adding up, it’s crucial to compare your options carefully. Here’s the financial steps families should take after college acceptance.
1. Calculate the Total Cost of Attendance (COA)
The first thing you’ll want to compare is the Total Cost of Attendance (COA) for each college. This includes tuition, room and board, textbooks, fees, transportation, and personal expenses. Each school will likely have a different COA. Therefore, it’s important to calculate the total cost of each so you have all the information to compare costs.
2. Grants and Scholarships
Grants and scholarships are the best forms of financial aid because you don’t have to pay them back. They’re considered “free money,” and they should be a major factor when comparing packages. If one school is offering a larger grant, that’s free money you don’t have to worry about repaying. It could make a huge difference in the total cost of attendance. However, this can also be deceiving. A school might offer a bigger grant or scholarship, and it seems like that is the best option, but when you add up the total cost of attendance, you might find that the school is significantly more expensive. Meaning, that after your grant is applied you still have a large amount left to pay.
That is why calculating the total cost, and then subtracting the free money you were awarded, will give you the net cost and the most accurate picture of the amount of money you will be required to pay, whether through loans, work study, or paying out of pocket.
3. Understanding Loans
Loans are another part of your financial aid package that you need to take seriously. Unlike grants and scholarships, loans must be paid back, typically with interest. When comparing offers, look closely at how much you’re being offered in student loans. Then compare that number to the net amount of money you will be required to pay after the grants and scholarships are applied. If you think you will need to take out the loans, pay attention to the interest rates on loans and the payback terms.
4. Work-Study Programs
Work-study programs offer part-time jobs on campus that allow you to earn money while you’re in school. This can be a great way to offset some of your costs! However, it’s important to realistically assess how many hours you can work while balancing your studies. When comparing work-study offers, check the amount of money you’ll be able to earn, and whether you feel comfortable fitting those work hours into your schedule, keeping in mind your course load, and any sports or extracurricular activities you might be involved in.
5. Consider Any Additional Fees or Hidden Costs
While you’re comparing aid packages, don’t forget to consider other costs that might not be included in the initial aid offer. Some schools have additional fees for things like technology, student health services, or parking. You don’t want to be blindsided by additional fees later. Factor everything in now to get the most accurate picture.
6. Negotiate If Necessary
If one school offers you more financial aid than another, or if your financial situation has changed significantly since you first applied, don’t be afraid to reach out to the financial aid office. Many schools have an appeals process, or are open to negotiating aid packages.
Choosing a college that is the right fit for your future career goals is important, but it is also about finding an affordable option that makes sense for you and your family, both now and in the future. By comparing financial aid packages carefully, you can ensure that you’re getting the best deal possible and setting yourself up for success later. You want to avoid taking out lots of loans and ending up with high student loan debt after graduation. Take your time to understand the details of each offer. You’re making an important decision. It’s worth doing the work to make sure you’re getting the most financial support for your education.
More about Jodi and College Financial Aid Advisors
Jodi is a FAFSA financial advisor who helps with the financial aid process to help families of college students maximize their financial aid. From completing the FAFSA and completing the CSS Profile to reviewing the SAR, responding to requests for verification, comparing financial aid offers and understanding student loan options, Jodi is a fantastic resource when it comes to student financial aid. Schedule a 15 Minute Power Chat to learn more about finding ways to pay for college.