Wondering how to pay for school?
There are many financial considerations to keep in mind as you think through the college selection process and ultimately how to pay for college. Here are three critical questions that you need to answer:
What can you afford?
Two primary factors affect how much you can afford to pay for college. The first is the Cost of Attendance (COA), or the price tag associated with attending a particular college or university. COA varies widely from college to college, as does the quality of the education. Keep in mind, however, that most students rarely pay the full COA. Students pay COA minus Financial Aid.
Financial Aid is money you get from the government, the college, or other sources, to help reduce the amount you pay for college. Some Financial Aid, like grants and scholarships, is free, meaning you don’t have to re-pay the money. Other Financial Aid must be repaid, like a student loan.
Remember, college is affordable! More than half of all students receive some form of Financial Aid, so before you rule out any college because of COA, try to understand what sort of Financial Aid you’ll receive. You may be able to afford more than you think! See the sections below for more detail on COA and Financial Aid.
What is the Cost of Attendance?
Are you suffering from “sticker shock”? You may be, if you’ve heard the following: the average cost of attending a public in-state college for one year is about $9,500. If you are going out-of-state, you can add about $5,000 to that total. And if you would like to attend a private school, it may cost $25,000 or more. What expenses are included in these figures?
The COA is the total amount it will cost you to go to college – usually expressed as a yearly figure. Each college is responsible for determining the annual average COA for its students using a standard definition established by the US Congress. The COA is derived from both direct and indirect college charges. Direct expenses include tuition, fees, and room and board. You pay these charges directly to your school. Indirect expenses are not paid directly to your school, but are associated with attending school. You can control some of these costs, which include books and supplies, computer equipment, room and board, transportation, entertainment and personal expenses.
What Financial Aid is available?
Students pay for college using a variety of sources – grants, scholarships, student loans, wages from a job, money from parents or other family, and savings. When you hear the term “Financial Aid”, it usually refers to grants, scholarships, and loans. Sometimes Financial Aid can include a federally subsidized job called work-study. Financial Aid can be provided by the government or it can come directly from a college.
Financial Aid varies among students with different financial circumstances. Each year, to get Financial Aid, you need to fill out the Free Application for Federal Student Aid, or FAFSA. After you provide information about your financial situation, the government determines the amount of Financial need you have. Students with high financial need are often eligible for certain government programs to help pay for college.
Financial Aid also varies by college, in some cases by substantial amounts. To get a sense of what a college will provide you in Financial Aid, the best thing to do is ask. Most colleges track the average amount of Financial Aid that a student attending the college receives annually. If you can’t find the information on their website, call the office of admissions or the financial aid office.
