Understanding and comparing financial packages from multiple colleges can be daunting. There are a lot of factors to consider, including some beyond those that you can see on paper.
When should I expect a financial package?
Financial package information is provided at different times depending on the college/university. Sometimes financial package information arrives with the college acceptance letter, and sometimes it comes days or weeks (and even sometimes months) later. In some cases, only merit award information is provided with acceptance, and need-based award information arrives at a later date.
What's in a financial package?
Regardless of the delivery timeline, the financial package will typically include several line items:
Cost of Attendance
Schools may include different items in this total, like average travel expenses, estimated loan fees, or anticipated miscellaneous expenses
Need-based aid at the federal, state, or college level that does not have to be repaid
These grants may vary from year to year based on the family's financial situation
Depending on the school, families will first need to complete the FAFSA and/or CSS profile for need-based aid to be determined
Merit scholarships that do not need to be repaid
Some are one-time awards, but many are offered each year for four years
Be sure to check the requirements necessary to retain the scholarship each year
Federal loans that must be paid back with interest
For students with demonstrated need, a portion of the loan may be subsidized, meaning the government pays the interest while the student is in school
Unsubsidized loans accrue interest from the start of the loan
ParentPlus loans may be included
Work study offers for on-campus employment to earn money toward educational expenses.
Note that work study is need-based and not a guarantee of on-campus employment
Expected family contribution after all of the above is factored in
What should I keep in mind when evaluating financial packages?
Financial packages can be confusing and hard to compare. Some things to note:
Loans can sometimes be listed as an "award" and not included in the expected family contribution, though they must be paid back with interest
As mentioned above, schools calculate Cost of Attendance differently, which can alter the "bottom line"
Some schools "freeze" tuition over four years, meaning the tuition for freshman year will be the same as senior year. Many schools do not do this however, and families will want to factor in potential tuition increases (and often fee increases) year over year
Housing costs can differ based on area and can fluctuate from year to year
Some schools will provide cost estimates for on-campus vs off-campus housing, which is very helpful as students may live off-campus for part of the college experience
It is important to read and analyze each package thoroughly so you can compare college offers accurately and identify your true net cost. For example, a smaller "award" or "scholarship" at one college could actually result in a lower net cost of attendance than an offer that looks more exciting on the surface.
At Growing2College, we help families understand and compare financial packages. Request a free 20-min consultation to learn more about how we can be helpful.
Kate Pedigo, M.Ed. NCC is an Independent Educational Consultant and founder of Growing2College. Join us on social media for college planning updates, tips, and resources: Facebook Instagram LinkedIn
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