How Much is This Going to Cost?

Good question. It should be one of the primary questions any new college-bound student asks himself/herself before they enroll in their first class. There are thousands of post-secondary institutions in the United States and each one will have their own unique set of costs. Four-year, public colleges will cost more than 2-year, community colleges and a private, 4-year college will cost the most of all. You have to judge each one on its own merit.

There are a lot of factors in determining your college choice: area of study, location, private vs. public, small classrooms vs. large…the list could go on and on. Price is certainly one of the biggest. As indicated in the section How are we going to Pay for this?, the average 4-year public institution costs roughly $13,600 per year when you factor in expenses like room and board, books, transportation and supplies. Some expenses are beyond your control, but good planning and budgeting can make a big difference to the bottom-line.

College costs are broken down into two groups: direct costs and indirect costs. Direct costs are typically those costs paid directly to the school like tuition, fees and on-campus housing. Indirect costs are those not paid directly to the school but still associated with your attendance. Examples of indirect costs would be off-campus housing, books, transportation and personal expenses like laundry, phone service, and entertainment. Very often, the indirect costs are more substantial than the expenses derived directly from the school. Therefore, it’s important to consider ALL costs before you stick a price tag on a particular school.

Consider the following Cost of Attendance Worksheet when putting your college financial plan together. To help you determine some of these costs, refer to your prospective college’s website or admission brochure. Most will break down expenses similar to what is shown below.

Cost of Attendance Worksheet:

It’s a good idea to calculate the cost of attendance at each prospective school. While school A may have higher tuition than school B, school B could have more affordable housing. Also, if you are planning to live off-campus, consider the housing prices in the area surrounding the school. The city’s Chamber of Commerce can provide you with apartment listings and rental property prices. If a school is in an urban area, housing prices could be much higher than a school in a rural part of the state. You simply want to compare apples to apples if you are trying to put a price tag on several different schools.

Now that you have determined the costs associated with attending, let’s see what money you and your family have to contribute. It’s best to be honest here. You don’t want to over-estimate and leave yourself a short down the line. In the financial aid community, this amount is referred to as the Expected Family Contribution or EFC. Remember this term. You’ll hear it again. We talk more about the EFC in the section titled How Much Can I Get?

Cost of Attendance Worksheet:

Once you have subtracted your EFC from the Cost of Attendance, you are left with your Financial Need. This is the amount of money that you will need in the form of financial assistance from the school or your rich grandmother. Assuming you don’t have a rich grandmother, let’s see how you’re going to pay this balance.

First, you have to “apply” for financial aid with your school in order to get the assistance you need. This is going to require a little work on your part…but don’t worry…it’s painless, free and, who knows, it could lead to some significant money coming your way! Don’t assume your prospective school is going to automatically determine your financial aid package for you and subtract that from the amount you owe. But if you happen to know what your school is offering in the form of financial aid, please continue with the worksheet below. If you need help understanding what aid is available to you and how to get it, please refer to the sections titled Types of Aid Available, How Much Can I Get?, and FAFSA – The Heart of the Aid Process. Once you have this information available, be sure to come back and complete the rest of the worksheet.

Cost of Attendance Worksheet:

Tuition: ________________________
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Additional Fees: ________________________
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Books and Supplies: ________________________
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Room and Board: ________________________
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Transportation: ________________________
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Other/Miscellaneous: ________________________
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Cost of Attendance: ________________________
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EFC: ________________________
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Financial Need: ________________________
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Scholarships: ________________________
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Work-Study: ________________________
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Perkins Loan: ________________________
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Subsidized Stafford Loan: __________________
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Unsubsidized Stafford Loan: __________________
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PLUS Loan: ________________________
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Private Loans: ________________________
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Other Financial Aid: ________________________
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Unmet Financial Need: __________________

Your Unmet Financial Need is exactly that…the amount that is unmet by your EFC and/or your financial aid package. Many schools will be able to produce a financial aid package that brings your Unmet Financial Need down to zero. That’s great!...but be careful. You must pay attention to the types of aid that makeup of the financial aid package. How much is grants and scholarships that don’t have to be repaid? How much is loans that must be repaid? If Work-Study is listed, you won’t receive that amount until you’ve worked for it.

Your school’s financial aid package (or award letter) represents their best offer based on your financial situation at the time of application. While you may disagree with their offer, don’t think of this like buying a home or a car. Most schools will not negotiate. But they will talk to you and reconsider things if your financial situation has changed. Every school has the authority to use “professional judgment” to reassess their financial aid decision. Simply be honest and don’t threaten. Financial aid administrators have heard it all. More often than not, an agreeable resolution can be found.