What Will College Really Cost?
“A wonderful college that requires a family to take on an uncomfortable amount of debt may not ultimately be the best fit.”
For many families, paying for college can feel like one of the most confusing parts of the entire college process. Last month, I held a webinar for my families to make sure I am teaching about college finances along the way. I don’t pretend to be a financial expert, but there are strategies you can take to maximize merit aid and create a college plan that works for each family and their unique needs.
With financial aid season approaching and the FAFSA and CSS Profile opening October 1, now is a good time for families of seniors to understand a few of the basics.
Start With FAFSA vs. CSS Profile
These are two different financial aid applications, and families often confuse them.
The FAFSA is the Free Application for Federal Student Aid. It is used to determine eligibility for federal financial aid and is also used by states and colleges for certain types of aid.
The CSS Profile is a separate application used by participating colleges to award their own institutional aid. Not every college requires it, so families need to check the requirements for each school on the student's list.
"Need" is not simply what a family believes it can comfortably afford. It is determined through financial aid formulas using information about income, assets, and family circumstances.
Learn a Few Important Terms
You do not need to become a financial aid expert, but understanding a few terms makes the process much easier.
COA — Cost of Attendance: The estimated total cost of attending a college for one year.
SAI — Student Aid Index: A number calculated through the FAFSA that colleges use when determining eligibility for need-based financial aid.
NPC — Net Price Calculator: A tool on a college's website that can help estimate what your family might actually pay.
The last one is particularly important.
The sticker price of a college is not necessarily the price your family will pay.
Merit Aid Can Change the Equation
Need-based financial aid and merit aid are different.
Merit aid is generally awarded based on a student's academic profile and sometimes other qualities a college is seeking. Not every college offers it, and not every student will receive it.
This is one reason the college list matters so much financially.
A student whose academic profile is strong compared with a college's typical admitted student may have a better opportunity for merit aid.
Sometimes a private college with a higher sticker price can actually cost a family less than a public university after merit and institutional aid are considered.
Run the Net Price Calculators
This is one of the most useful things families can do before applications are submitted.
Go to each college's website and find its Net Price Calculator. Enter your family's information and compare the estimated costs across several schools.
These calculators aren't perfect, and some are much more detailed than others, but they can provide an important starting point.
I would much rather have a family understand the potential cost of a college before a student falls in love with it than discover in April that it simply isn't financially realistic.
Financial Fit Is Part of College Fit
We spend a lot of time talking about academic fit, social fit, and whether a student can picture themselves on a campus.
Financial fit deserves a place in that conversation, too.
A wonderful college that requires a family to take on an uncomfortable amount of debt may not ultimately be the best fit — particularly when another school can offer the student an excellent education at a much more manageable cost.
That does not mean families need to choose the least expensive college. It means they should understand the numbers and make informed decisions.Final Thoughts
Start the Conversation Now
Students should be part of this discussion.
Families do not need to share every detail of their finances, but students should have a general understanding of what is realistic before applications go out.
Financial aid can feel complicated because there are formulas, unfamiliar terminology and different requirements at different colleges. But you do not have to figure everything out at once.
Start by understanding which forms your colleges require. Gather your financial information. Run Net Price Calculators. Pay attention to financial aid and scholarship deadlines.
And most importantly, remember that the goal isn't simply to find colleges where a student can get in.
We want to find colleges that are a good academic, personal, and financial fit for the family.
Yes, activities can strengthen a college application. But more importantly, they help teenagers discover what excites t build confidence, develop skills, and begin figuring out who they want to becomeFi
