Understanding College Costs and Financial Aid
How do you get money for college?
Are you reading about college financial aid online or chatting about it with your friends? Are your parents wondering how much your college education is going to cost them?
Beginning and Ending Premise of College Funding
Colleges and the government say the primary responsibility for paying for college is with your family. Yet, many students need additional help beyond themselves and their families to meet college costs. Financial assistance given to you as a student to help with college costs is defined as “financial aid.”
The Financial Aid Process takes under consideration these 3 Parts:
Part 1: Cost of Education
It costs money to go to college. Your college budget includes 5 categories:
- Tuition and Fees
- Room and Board
- Books
- Transportation
- Personal Expenses
Part 2: Family Contribution
The “Family Contribution” is calculated using a formula set by Congress. The family contribution formula is a complex system that takes into account many family factors. The primary factors are:
- parent income
- student income
- parent savings and assets
- student savings and assets
Other factors that are of prime importance in the financial aid calculations are:
- parent age
- size of family
- number of children in college
Your financial aid analysis will assess each of these factors and their influence in your family’s situation.
Part 3: Financial Aid
Financial Aid is based on “financial need.” Financial need is calculated the same way by all colleges or programs. It is figured by taking the difference between cost of attendance and the expected family contribution:
