April 5, 2015

5 on the 5th

Five Steps for Comparing Costs and Financial Aid Awards 

Performing a side-by-side comparison of the financial aid awards that you've received can help you understand your true cost. Whether you prefer a paper form like FAME's Comparing Costs & Financial Aid Awards or an electronic form like College Board's Compare Aid Calculator, using this type of tool will help you make an informed financial decision. 

           

 

1.     Identify direct costs 
The cost of attendance will either be included in your award letter or will be available on the 
school's website. It typically includes both direct and indirect costs. Direct costs are expenses that are billed directly by the school, like tuition and mandatory fees and on campus room and board. Indirect costs are expenses over which you have more control, like books, supplies and travel. 

  


2.     Determine gift aid awards


 

Gift aid is the best form of financial aid because these funds don't have to be repaid. Gift aid includes grants, scholarships and tuition waivers that may come from the federal government, state government or your school. Review your award for gift aid and total the amounts. 

 

 

3.     Subtract gift aid awards from direct costs


 

Your direct cost minus your gift aid equals your balance owed to the school. Think of this as your actual cost to attend that school. Compare this cost from one school to another to get an "apples to apples" comparison. 

  

4.     Understand self-help aid and subtract federal loans, if appropriate


 

Self-help aid is financial aid that includes student loans (which have to be repaid with interest) and work-study. Most students are offered federal direct student loans as part of their financial aid award. If you choose to borrow the loans offered, deduct the loan amount from your remaining balance (after gift aid). This remaining balance is an estimate of the amount due to the school. 


 

Work-study allows you to work throughout the semester to earn money for your other educational expenses, like books and supplies. You earn the money as you go instead of receiving it all up front so don't deduct this from the amount you owe the school.  


 

5.     Calculate the total cost at each school 


 

The estimated total cost is the remaining balance due to the school plus any indirect costs that you could incur. 


 

Knowing the estimated total cost for each school helps you decide which schools are most affordable for you to attend. 


 

If you have questions or need assistance, FREE help is available. Talk to your school counselor, the financial aid office at the college you want to attend, or contact us at FAME. 
FAME Finance Authority of Maine 
PO Box 949, 5 Community Drive
Augusta, Maine 04332-0949

207-623-3263 or 1-800-228-3734
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