How the financial aid offer comparison works
Aid offers mix money you keep with money you pay back, and colleges don't always label them the same way. The calculator sorts each offer into three buckets and does the same math for every college:
- Net price = cost of attendance − grants − scholarships. This is what the college really costs you. Loans don't lower it, because you repay them.
- Out of pocket = net price − loans − work-study. This is what's left to cover from savings, income or more borrowing.
- Total borrowed = loans per year × years of college, if the offer stays the same each year.
The college with the lowest net price is usually the best deal, even if another college's offer looks bigger. A large offer full of loans can cost more than a smaller one made of grants.
Reading an aid offer
- Free money: Pell Grants, state grants, college grants, and scholarships. You don't repay these, though some have GPA or enrollment rules to keep them.
- Loans: Direct Subsidized and Unsubsidized Loans, Parent PLUS Loans, and private loans. All of these are repaid with interest. Count a Parent PLUS Loan here too, even though it's in your parent's name.
- Work-study: a chance to earn money from a campus job. You're paid as you work, so it doesn't lower your bill when tuition is due.
- Cost of attendance: make sure each offer includes housing, food, books and travel, not just tuition. If one leaves them out, add them so the comparison is fair.
The U.S. Department of Education explains each part of an offer at studentaid.gov: understanding your aid offer.
Worked example
State U costs $28,000 a year and gives $9,000 in grants and scholarships. Net price: $19,000. After a $5,500 loan and $2,000 in work-study, $11,500 is left to pay.
Private College costs $62,000 and gives $38,000 in free money. That's the biggest offer, but the net price is $24,000, $5,000 more a year than State U.
City College costs $34,000 and gives $4,000. Net price: $30,000. It also has the largest loan, so you'd borrow $30,000 over four years, compared with $22,000 at the other two.
Over four years, State U's net price is $76,000, Private College's is $96,000 and City College's is $120,000.
Common questions
What is net price?
Net price is the cost of attendance minus grants and scholarships. It's what the college actually costs you, whether you pay it from savings, income or loans. It's the best single number for comparing colleges.
Why aren't loans counted as aid in the net price?
Because you pay them back, with interest. A loan helps you pay the bill now, but it doesn't make college cheaper. The calculator shows loans separately so you can see how much of each offer you'd owe later.
Is work-study guaranteed money?
No. Work-study lets you earn up to a set amount from a job, usually on campus. You have to find a job and work the hours, and you're paid as you go. It won't reduce your first bill.
Will my aid be the same every year?
Not always. Grants can change if your family's finances change, and some scholarships need a minimum GPA to renew. Ask each college whether its grants renew and what the rules are.
Can I ask a college for more aid?
You can ask. Contact the financial aid office, explain any change in your family's situation, and share a better offer from a similar college if you have one. Be polite and specific. There's no guarantee, but some colleges will review an appeal.