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Discussing college affordability with students and families can be challenging as they consider college costs, payment options, and how finances impact college choices. For first-generation students and their families, unfamiliarity with the college financing process can be a significant hurdle. Integrating conversations about college costs early on can set students up for success when making college decisions. Here are a few key concepts that can help students and families explore their college options with affordability in mind.

Understanding Different College Costs

Colleges vary widely in their starting costs and the types of financial aid they offer. Public colleges in a student's home state typically offer lower in-state tuition and potential eligibility for state grants. Out-of-state public colleges often charge higher tuition, and students may not qualify for those state-specific grants. Private colleges might have higher sticker prices but can offer more generous financial aid packages. Discussing these differences and whether tuition reciprocity agreements exist between states helps students understand their options. Ultimately, recommending that students apply to various colleges is a good move, as financial aid can be more or less generous than expected, and having colleges at different cost levels can provide more options. 

Breaking Down the Cost of Attendance

Educating students and families about the components of the cost of attendance (COA) helps them prepare financially and understand that the initial price tag is different from what they'll pay after financial aid is applied. A recent study from the Brookings Institute found that in 2019-20, less than 30% of students at in-state public and less than 20% at private colleges paid the full price. COA includes fixed costs like tuition and fees and variable costs such as housing, meals, books, and personal expenses. It's important to convey that most students do not pay the full COA. Variable costs can often be managed—for example, students can choose less expensive housing options or meal plans.

Impact of financial aid

Financial aid can significantly reduce the cost of college, sometimes turning an initially unaffordable option into a feasible one. Tools like the College Scorecard allow students and families to view the average net price (COA minus grants and scholarships) based on each college's income ranges and do not require much information. For example, a college with a COA of over $80,000 might have a net price of $2,000 for families earning between $0–$30,000 annually. Demonstrating these figures helps students see the potential affordability of colleges once financial aid is considered.

Assessing Financial Resources and Aid Eligibility

Students should understand both the financial resources they have available to pay for college and the financial aid they may be eligible for, which will help them create a financially informed college list. 

Encourage students to have open conversations with their families about any financial resources available for college, such as savings or 529 plans. Understanding their financial situation helps set realistic expectations and influences college list choices. Before the FAFSA launches, students can use the Federal Student Aid Estimator to understand their Student Aid Index (SAI) and potential Pell Grant eligibility. Additionally, using each college's net price calculator provides a personalized estimate of potential financial aid. Guiding students to utilize these tools can reduce surprises when financial aid offers arrive.

By providing students with an understanding of college costs and the resources to explore affordability, they can create college lists that consider what college affordability means to them. The key to having an affordable option when it is time to make a college decision is having one on their college list when they apply.

Check out uAspire’s free resources to help have these conversations and complete the financial aid process.