What You Need to Know About College Costs
One of the most harrowing aspects of the college admission process is dealing with college financing and preparing to meet college costs. Many families do not know how they are going to afford a postsecondary education.
The costs associated with college do not end with college tuition and room and board. While these are a large piece of the puzzle, there are many other things that must be factored into the college tuition cost, such as textbooks, fees, transportation, and even student loan interest. There are tools available, such as the college cost calculator provided by NextStudentAdvisor, to help you estimate what your actual college costs will be in the future.
Besides evaluating future costs, it is also important to understand what Federal Student Aid is and how to participate in this financial aid process. Federal Student Aid is a general term that refers to grants (financial aid that does not need to be repaid), student loan programs (financial aid that needs to be repaid) and work-study programs (work for pay). Private scholarships, and if necessary, private student loans can also be part of ones strategy for helping to facilitate a college education.
Many students and families meet the cost of attendance in two other ways: using money they have saved; or, using money they consume out of their normal income flow. Schools will usually offer a monthly payment plan to help families spread the costs over time. These monthly payment plans are not to be confused with private loans or grant programs.
Together, direct and indirect costs make up the total cost of attendance, or COA, in financial aid terms. Most schools will make available their total average COA each year, which includes both direct and indirect costs. Direct costs are what the student is billed for: college tuition, room and board, and assorted fees, such as health fees, student fees, and others. Indirect costs are the additional costs that the student will incur while in school, such as the cost of textbooks, transportation costs, and the cost of a computer. As a result, the total COA can be a large and daunting figure. To make things even more complicated, many schools release only their direct costs, and not the total COA, which can make it very difficult for a student to compare one school to another. As a result, it is important that the student understand the difference between the two costs.
Early financial planning allows the family an edge, since the earlier the family can begin to save, the better it will be. To help parents understand the cost of college for younger children, the NextStudent Advisor college cost calculator can be beneficial to you. The calculator allows the family to project current college costs, in today’s dollar, to what it might cost in future dollars. The NextStudentAdvisor college cost calculator, can be a great tool in helping to understand what the costs may be five to ten years ahead, and to provide motivation to start saving as soon as possible.
Understanding Direct and Indirect College Costs
Estimating the Total Cost of College
Using All of the Tools and Resources you know
Consider Workshops