🚨NEW SERIES ALERT!: Understanding College Costs - PART 1: TUITION COSTS💰

Kendra_Solis

In this new series, we will dig into college costs to get a better understanding of how to navigate this process.

Today, let's focus on common questions our college advisors get on the cost of tuition:

What are your tips and tricks for understanding tuition costs?

"It's important to understand some key definitions. First, let's discuss the cost of attendance. This is often the number you'll see when researching how much a college costs. However, it's different from tuition and room and board.

Tuition is the cost of classes. Room and board is the cost of living on campus. The cost of attendance includes both of these, plus estimates for additional expenses like books, transportation to and from the college, and meal plans.

We advise students to focus on tuition and room and board. The cost of attendance can vary widely and is often an overestimate of actual expenses, like what you'll need to set up your dorm room. So, don't assume the cost of attendance is the exact amount you'll pay the school, as it includes many extra items. There's more to discuss about tuition, but this is a common point of confusion for students and families."
-Sasha F

What should I ask the college or institution about those costs? 

"Understanding tuition and room and board costs is straightforward. However, it's crucial to ask a few key questions. First, when can you expect to receive financial aid award letters? Just because a college lists a $14,000 annual cost doesn't mean that's what you'll pay. FAFSA, university scholarships, and outside scholarships can significantly reduce that amount. You need to determine your actual out-of-pocket cost. Students typically complete the FAFSA by December 1st, and schools usually send award letters between March and April. So, inquire about the timeline for receiving your award letter.

Second, after receiving your award letter and determining your out-of-pocket cost, explore payment options. Does the school offer an 8-month payment plan? Is there a discount for paying in one lump sum? What payment plans are available? Additionally, investigate loan options if you need to cover the out-of-pocket cost through loans."

-Sasha F

What would you define as an out-of-pocket cost for somebody reading along? 

"Let's clarify 'out-of-pocket cost'. It's the amount you owe for tuition and room and board, if applicable, after subtracting any grants or scholarships from FAFSA or the school. It's what you physically have to pay the school to attend. Ideally, the goal is to keep this number under $4,000 per year.

Once you know your out-of-pocket cost, you have three options for paying it. First, you can explore payment plans with the school, such as monthly or bi-annual installments. Second, you can consider loan options, including federal student loans or Parent PLUS loans. Third, if you have a remaining out-of-pocket cost, say $2,000, you can use that as a trigger to apply for additional outside scholarships to cover the remaining balance."

-Sasha F

Are there other tips and tricks you would share just around the tuition costs that have led people to success?

"It's important to note a couple of things. First, delays in receiving financial aid award letters often occur because students haven't completed all the action items requested by colleges in their student portals. Students often say they haven't heard back, and it's usually because they need to submit or complete something. In the past, these requests came through the mail, but now they're in student portals. If students apply to many schools, they must manage numerous portals to see financial aid information. They might miss scholarship offers, dependency questions, or requests for non-filing tax forms, all of which can delay the release of their financial aid award letter. This process often starts in January, and missing these action items can cause significant delays.

Second, remember the May 1st deadline for enrolling in a school. While you can enroll after this date, schools are only obligated to hold their financial aid and scholarship offers until May 1st. After that, the offers may change or be withdrawn. So, if you're still deciding, you must make your decision by May 1st. Today, students must manage many portals, which requires an organized system. Before May 1st, you'll need to compare different award letters to see which option is best. It's a lot to juggle, but necessary for comparison.

Also, for juniors, use the Federal Student Aid Estimator on the Federal Government website. Enter your most recent tax information to see what grants you might receive. This helps with planning and avoids guesswork when creating a college list. Many students want to attend out-of-state public universities, but they don't always realize that out-of-state tuition is often double the in-state cost."

-Sasha F

Let us know if you have any additional questions in the comments below!