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Sticker prices are deceiving</a>. The only way to find out for sure is to directly compare financial aid awards from each school you’ve been accepted to.</p>
<h2>Understanding College Financial Aid Packages</h2>
<p>Before you start comparing student financial aid award letters, make sure you know what to look for. You should see all or several of these items on your financial aid offer: </p>
<ul>
<li>Total cost of attendance – Cost of tuition, fees, room, board, books, supplies, etc.</li>
<li>Scholarships awarded—Scholarships awarded by the school and reported by you from outside sources</li>
<li>Grants awarded—Institutional, state, and federal grants</li>
<li><a href=https://plexuss.com/n/"https://plexuss.com/news/article/what-is-work-study-and-how-does-it-work">Work-study funds awarded—Institutional or federal work-study funds</li>
<li><a href=https://plexuss.com/n/"https://studentaid.ed.gov/sa/types/loans">Federal student loans</a>—Direct subsidized and unsubsidized loan amounts you qualify for</li>
</ul>
<p>View a sample student financial aid package <a href=https://plexuss.com/n/"https://www.mefa.org/wp-content/uploads/2015/01/Sample-Financial-Aid-Award-Letter.jpg">here.
<h2>Compare Financial Aid Awards from Multiple Colleges</h2>
<p>Now that you know what to look for, you can start comparing financial aid award letters from two or more schools.</p>
<h3>Step 1. Determine the Net Cost</h3>
<p>When <a href=https://plexuss.com/n/"https://www.bing.com/search?q=comparing+financial+aid&PC=U316&FORM=CHROMN%22>comparing financial aid offers</a>, you first need to determine the net cost of each college. The net cost (also called the out-of-pocket cost) for our purposes is the total amount you need to cover with savings and student loans.</p>
<p>For the most accurate comparison, it’s helpful to come up with several different net cost numbers. Here’s why:</p>
<ol>
<li>You aren’t obligated to accept all parts of your financial aid package</li>
<li>You don’t actually owe the total cost of attendance because it includes estimates for books, supplies, and transportation</li>
<li>You might not be offered the same types of financial aid at each school</li>
</ol>
<h4>Net Cost Estimate 1 – Total Cost of Attendance minus Scholarships & Grants</h4>
<p>For a basic net cost estimate, subtract the scholarship and grant amounts listed on your financial aid offer from the total cost of attendance.</p>
<h4>Direct Net Cost Estimate 1 – Direct Costs minus Scholarships & Grants</h4>
<p>For a direct net cost estimate, subtract the scholarship and grant amounts listed from only the direct cost of attendance. Direct costs meaning tuition, fees, room, and board as you must pay these costs directly to the college if you wish to enroll at the school and live on campus.</p>
<p>If you do not see the cost of attendance broken down on the award letter, contact the school’s financial aid department to request it.</p>
<h4>Net Cost Estimate 2 – Total Cost of Attendance minus Scholarships, Grants & Work-Study</h4>
<p>For this net cost estimate, subtract work-study, scholarships, and grants from the total cost of attendance.</p>
<h4>Direct Net Cost Estimate 2 – Direct Costs minus Scholarships, Grants & Work Study</h4>
<p>For this direct net cost estimate, subtract work-study, scholarships, and grants from the direct cost of attendance.</p>
<p><img src=https://plexuss.com/n/"https://s3-us-west-2.amazonaws.com/asset.plexuss.com/news/images/comparing-financial-aid-awards.jpg" alt="Comparing Financial Aid Awards" width="400" height="250" /></p>
<h3>Step 2: Compare All of the Numbers</h3>
<p>Next, compare the net cost(s) of each college to determine which one is the most affordable. It’s a good idea to focus on the direct net costs because this is the amount you will owe in full for tuition, fees, room, and board.</p>
<h3>Step 3: Analyze the Numbers</h3>
<p>Comparing one number to another doesn’t do much unless you also analyze what the numbers mean. You need to think through the obligations that come along with your financial aid package.</p>
<p><strong>Example 1</strong>: </p>
<p>Suppose at College A the net cost after scholarships, grants, and work-study is $10,000 based on the direct cost of attendance. At College B, the net cost after scholarships and grants is $10,400 based on the total cost of attendance.</p>
<p>College A looks like the better deal, right? Not necessarily.</p>
<p>At College A, you must work during the school year to earn the full aid amount. <a href=https://plexuss.com/n/"https://plexuss.com/news/article/what-is-work-study-and-how-does-it-work">Work study</a> is a part-time job that typically pays minimum wage with funds being deposited into your student account or your personal bank account.</p>
<p>At College B, you owe $400 more overall, but you don’t have to earn any of that financial aid money. It’s yours as soon as you accept your financial aid offer. At College B, you could take time adjusting to college life before picking up a part-time job.</p>
<p><strong>Example 2</strong>:</p>
<p>College 1 and College 2 have similar net costs, but College 2 costs about $3,000 more per year. College 1 offers you a $14,000 per year scholarship but to keep it you must maintain a 3.7 or higher GPA. College 2 also offers you a $14,000 per year scholarship but to keep it you must only maintain a 3.0 or higher GPA.</p>
<p>College 1 is cheaper thanks to your scholarship, but it’s also a riskier choice. If your GPA isn’t high enough, you’ll lose your scholarship. Before choosing College 1, talk to the financial aid office about what would happen if you lost your scholarship. Would you qualify for more grant money? Would you get a different scholarship of a lower amount? If not, how would you pay for the rest of your education?</p>
<p>For some students, College 2 is a much safer bet.</p>
<h3>Step 4: Compare the Amount of Debt You’d Take on to Attend</h3>
<p>If you don’t have money saved away for college, you’ll need to borrow money from a relative, a friend, the federal government, or a private financial institution to cover the net cost of college.</p>
<p>At some colleges, taking out loans to cover educational costs is worth it. At others, it might not be. Payscale.com has a helpful <a href=https://plexuss.com/n/"https://www.payscale.com/college-roi">College ROI tool</a> that shows you best value colleges by state, major, school type, and job. Search for the schools you’re comparing to see the estimated return on investment based on your field of study. The higher up a school is on the list, the more <em>worth it</em> borrowing money to attend the school is.</p>
<h3>Step 5: After Comparing, Negotiate Your Financial Aid Package</h3>
<p>Financial aid for college students isn’t 100% set in stone.</p>
<p>As you compare financial aid awards, one school will likely come out on top in terms of affordability. If the cheapest school isn’t your top choice, don’t worry. You might be able to use the financial aid award from a cheaper college to negotiate your financial aid award from your top choice.</p>
<p>Learn more about <a href=https://plexuss.com/n/"https://plexuss.com/news/article/negotiating-college-tuition">negotiating university tuition here</a>.</p>"/>
