How to Compare Financial Aid Awards

Comparing financial aid awards can be complicated, as each school handles things a bit differently. This page will help you learn how to compare financial aid awards.

Surviving Student Loans and College Debt

This ''U.S. News and World Report'' video provides advice about taking out student loans for college. They mention that Federal loans, such as Stafford and Perkins loans, are usually better deals that private loans, so you should maximize federal loans first. If you do need private loans, carefully compare interest rates and fees.

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Introduction
- While it's exciting to have offers from several colleges to compare, it can also be complicated, You need to make sure you're comparing apples to apples, while you carefully consider each element of the financial aid package.
Step 1: Calculate the Total Cost of Each College
- Colleges each state their costs differently. The first step in looking at various financial aid offers is to calculate the total cost of attending each school, using a consistent methodology. Costs such as books and personal expenses will be consistent from school to school, so don't worry about including them in this analysis.
1. Tuition
2. Room and board
  - Make sure you're comparing the cost of similar housing and a standard number of meals per week.
3. Travel costs to and from school.
Step 2: Adjust the Cost by the Grants Received
- After calculating the cost of each school, subtract the amount of any grant aid you were awarded. The remaining figure is the actual cost of attending each school.
Step 3: Evaluate Loans and Work Study Awards
- Loans and work study are two ways that college will assist you in financing your education. Look at the terms involved with each. Is the interest deferred on the loans? What is the hourly wage associated with the work study programs? Is a job guaranteed?
Step 4: Other Issues
1. Schools treat outside scholarships differently. Some don't adjust financial aid, some adjust loans, and some reduce grants. If you expect to get any local scholarships, this could be important to you.
2. Ask the school what their policy is for subsequent years. Will the grant/loan mix stay the same?
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