If you are thinking about going to school or are already in college, you may be wondering what options you have to pay for school and how to know which school is offering you the best deal. In this module we will cover:
Once your have successfully jumped over the hurdles of applying to schools, filing out the FAFSA (or WASFA), and maybe even applying for other scholarships; now it’s time for the exciting part – deciding where to go to school! As your acceptance letters and award letters come rolling in, take some time to compare your offers. A few key things to compare are:
Cost of Attendance: includes tuition and fees, along with estimates for housing, food, books, transportation, and a variety of other costs you may have during your time at college
Gift Aid: grants and scholarships that can be put toward your cost of attendance and that does not need to be repaid
Grants: gift aid from the government based on your FAFSA/WASFA
Scholarships: gift aid from a school or outside organization that generally requires an application
Graduate Assistantship: often a tuition waiver and stipend in exchange for a graduate student working as a teaching or research assistant
Work-Study: federal and state programs that give you access to part-time campus employment to help cover your expenses
Net Costs: the cost of attendance minus all gift aid
Expected Family Contribution: calculated based on your FAFSA information to determine eligibility for financial aid (your family will not necessarily be responsible for paying this much money)
Loans: money borrowed to pay for student expenses that must be repaid with interest
Graduation Rate: the percent of students who graduate from the school within a certain number of years
Loan Default Rate: the percent of students who default on their loan within a certain number of years after leaving the school (a lower default rate is better)
Median Borrowing: the typical amount of money borrowed by students at the school
College Bound Scholarship: this program is an early commitment of state financial aid to eligible students who sign up in middle school and fulfill the scholarship pledge
In addition to costs, you should consider a number of other factors in deciding which school to attend such as:
Comparing colleges can be hard, but the Advanced Award Letter Comparison Tool from finaid.org is a good place to start! This tool helps you to easily compare award offers and non-financial characteristics of the schools.
Here are some things you may want to compare when making your decision:
In 2021, all award letters in Washington will be standardized so it is easier to understand and compare your awards. In the meantime, take a look at this example provided by the U.S. Department of Education.
As you look through your award letter, consider the following:
When it comes to paying for college, you generally will be relying on a combination of the following:
| Payment Method | Options |
|---|---|
| Money that is given to you that you don’t have to pay back |
|
| Money that you work for |
|
| Savings (not an option for many students) |
|
| Money that is given to you that you have to pay back with interest (loans) |
|
All of these are common ways to finance college
A lower default rate suggests that graduates are doing better financially after graduation because they are able to keep up with their loan payments.
Some people may be looking to minimize financial costs, others may have to stay in a certain location to support family, and others may have other non-financial priorities
Nicely done! It looks like you really understand this module!
If you are still a little confused, you may want to review this module.
