Understanding College Financial Aid and Paying for College

Understanding College Financial Aid and Paying for College

Bill Smith bsmith@ 207-773-4142

College Costs, But it Pays

College grads have 46% lower unemployment than high school grads

College grads earn 65% more than high school grads

Agenda

Assessing WhereYou Might Get Aid

Assess Your Profile

How You Compare to Other Applicants Assess How College

Awards Aid

Need-Based Aid (Grants)

Income and Assets

EFC

Percent of Need Met

Merit-Based Aid (Scholarships)

GPA, Test Scores, Rank

Middle 50% at a Given College (25th - 75th %)

Percent of Students Receiving Institutional Aid

Deciding What You Can Afford

? What is the true, total cost: Net price of a degree ? What resources do you have to pay the cost: Savings & Income ? How much will you have to borrow ? Is the amount of debt reasonable

Net Price: Real Cost of College

Sticker (16-17) $30,002

$63,512

$67,000

Average Gift Aid $11,303

$31,698

$39,603

Average Net Price,

Aided Students $18,699

Percent Aided

61%

$31,814 98%

$27,397 58%

Average Net Price,

All Students

$23,107*

* Excludes non-resident impact

$32,448

$44,030

? It doesn't matter what colleges charge ... ? What matters is what you pay ... ? Your Net Price = College's COA minus your gift aid

$69,710 $33,4547

$36,256 43%

$55,325

Types of Financial Aid

? Gift Aid (free money) ? reduces cost

? Grants: Need-based aid ? Scholarships: Merit-based aid

? Self-help ? manages cost

? Work/Study ? Earned as you go ? Loans ? Must be repaid with interest

Interpreting Award Letter

Tuition & Fees

G G G

Room & Board Books & Supplies

L

Transportation & Other

L G

Cost of Attendance

W

less: Gift Aid

Net Price

$32,375 $14,100

$700 $2,590 $49,765 $14,900 $34,865

What's missing? - The list price - Your real cost (net price)

Gift Aid Loans Work/Study

$14,900 $ 5,500 $ 1,800

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