AptKeysMoney · Paying for college
Reading a financial aid offer
An aid offer mixes money you keep (grants and scholarships), money you earn (work-study) and money you pay back (loans). Subtract only the grants and scholarships from the full cost to see what school will really cost you.
You'll need
- Each school's aid offer
- A calculator, or the CFPB's free comparison tool
Do it like this
- Find the full cost, not just tuition: tuition and fees, housing and meals, books and supplies, and transportation. Schools call this the cost of attendance.
- Circle the grants and scholarships. A Federal Pell Grant, unlike a loan, generally doesn't have to be repaid. Read the rules for each award so you keep it.
- Treat work-study as a paycheck, not cash up front. Federal Work-Study gives part-time jobs to students with financial need, and undergraduates are paid by the hour, at least the federal minimum wage.
- Mark every loan as debt. You don't have to accept all the loans you're offered, or the full amount.
- Full cost minus grants and scholarships is what you'll cover with savings, work and loans. Compare that number across schools. The CFPB's Paying for College tools walk you through it.
- Call the financial aid office with questions. Helping you is their job, and asking questions won't put your funding at risk.
Watch out A big total can hide a lot of loans. Two offers with the same total can leave you with very different debt. Compare what you'd owe, not just what you're offered. Work-study isn't a discount either: it's paid by the hour for hours you actually work.
Dad note Grants are gifts. Work-study is a job you still have to show up for. Loans are bills with a long fuse.