Practical Practice: Understanding Financial Aid Packages

Assume that the college in Award Letter #1 has a cost of attendance of $53,000. What would be the "net price" (or out-of-pocket costs) for the college?

$14,000

If you accept Award #2, how much of the FINANCIAL AID awarded to you will you have to pay back or earn through work?

$5,682 (Federal Subsidized Direct Loan + Federal Work Study)

Which of the following steps are recommended BEFORE you accept your aid offer? (choose ALL correct answers)

-Check the terms and conditions of any loans you may be accepting. -Ask what happens to your financial aid package after the first year. -If your parent's or guardian's financial position has changed, you can ask to have your financial aid package reviewed again.

After reviewing Award Letter #1, what TWO questions would you ask the financial aid representative to fill in information that you don't currently have? (choose ALL correct answers)

-What is the school's total cost of attendance? -What will be my "out of pocket" costs or "net price" for your school?

You will receive a Financial Aid Award Letter

After you have completed the FAFSA

What is a federal work study award?

An estimate of how much you are expected to contribute to your college expenses from an on-campus job that you will have while you are a student at that school.

Assume that the college in Award Letter #1 has a Cost of Attendance of $70,000. Which of the statements below comparing Award Letter #1 to Award Letter #2 is TRUE?

College #1 has a higher "net price" than College #2

Which of the following types of aid will you have to pay back after you leave college?

Federal Student Loans

Which sentence is TRUE?

You can choose to accept some of the aid listed in the financial aid award letter and decline some aid.

Fill in the blanks of this sentence: The __________________ minus financial aid awarded equals ____________________.

cost of attendance; net price