47 46 One of the main things to consider about paying for postsecondary education is whether you were awarded any financial aid. Your financial aid package is like a special deal tailored just for you. This means the amount of aid you get can change depending on which college or university you choose to attend. This, and the rising cost of tuition over the years, also means you should spend the time carefully considering all your options and working out which is your best financial fit. The US Education Department states that you need to keep two main questions in mind: • What types of aid is the school offering you? • How much of your financial need is met through the aid the school is offering you? You need to understand the direct expenses of attending each college or university. The direct expenses include: • Tuition • On-campus housing • Campus meal plans • Any other fees the college will charge you You need to be sure of the kinds of aid being offered to you. Is there any funding offered to you that doesn’t need to be paid back? Which offers of funding do need to be paid back? You must also understand any conditions of the aid offers. For example, you might need to keep up a certain GPA or meet specific requirements on enrollment. You also need to check whether the award is a one-time amount or a continuing amount. You should consider any financial aid offered in this order: 1. Free money first (e.g., scholarships, grants) 2. Earned money second (e.g., work-study) 3. Borrowed money last (e.g., federal student loans) For each institution you are considering, add up the awarded financial aid that you want to accept, and then subtract that amount from the cost of attendance. This final figure is the net cost of attendance. This is the number that you then use to compare all your offers. That will give you a sense of which institution is the best financial fit for you. Of course, there is the handy financial plan section in the MaiaLearning platform that will automatically calculate a lot of this for you once you have entered any financial aid awarded! Then you also need to consider the indirect costs of attendance in general. These are the costs of other things you will need to consider when you attend college. They are variable depending on your needs and choices. They include things such as: • Books and supplies • Transportation • Health care costs • Personal expenses Costs like textbooks, supplies, gas, parking passes, food, and clothing will add up quickly. Don’t forget to add in any regular costs not related to school that you still need to cover, such as credit card, car payments, etc. Do not be surprised by these costs. Start talking to your family or trusted adults in your life now. Talking with experienced adults about how you will manage costs can help you to be prepared. The US Department of Education website has a lot of helpful information, and the Consumer Financial Protection Bureau has a handy cost planning tool with lots of tips and hints. Choosing how to pay for college or vocational school is one of the first major financial decisions you will make as a young adult. It is likely the most expensive thing you have had to pay for at this stage of life. This is why it requires significant planning and support from family or guardians. When talking about the costs of college, there are a variety of factors you need to consider. Did you know that the average textbook price is around $105, but they can cost as much as $300? And if you need a latte to get through class every day, you could spend around $90 on coffee a month! Understanding the Cost of College
RkJQdWJsaXNoZXIy