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Financial aid terminology can feel like a foreign language for many first-time applicants. It can be challenging to understand each college’s costs, the types of financial aid available, and how different decision points impact overall expenses. While every financial aid offer conversation will differ, here are some key questions to help students clarify their options:

Where are you planning to live? 
Living on campus, off campus, or at home can affect overall costs and the financial aid available. For example, opting for a lower-cost dorm, using public transit, or selecting an affordable meal plan can all help reduce yearly expenses.

What is your estimated bill?
Understanding the true value of grants and scholarships means comparing them against a college’s direct costs. For instance, a $30,000 scholarship goes much further at a college with tuition of $35,000 than at one costing $75,000. We encourage students to compare apples to apples by reviewing the estimated bill—the total direct costs minus any grants and scholarships. At uAspire, we calculate the estimated bill before considering loans. You can also use our College Cost Calculator with your students to help compare costs across different schools.

Does the financial aid offer include PLUS loans and/or work-study?
Work-study and PLUS loans often cause confusion. Work-study, while helpful, is paid out over the semester based on hours worked and isn’t immediately available to cover tuition. PLUS loans must be borrowed by the parent, who is responsible for repayment, with no approval guarantee. Discussing these options with students can help clarify how each affects their overall financial aid package and prevent misunderstandings later.

What is your plan to cover the estimated bill this year?
There are several ways to cover college costs, but each option requires preparation. A family must complete the application process if they plan to take out a loan. Students relying on scholarships need to apply and meet eligibility criteria. For those considering a tuition payment plan, it’s important to know when payments begin (some start as early as July) and understand the consequences of missed payments. Waiting until August to make a plan can limit options and add unnecessary stress to the start of college.

Can you plan to cover the estimated bill for multiple years?
Financial aid offers typically outline costs and aid for a single academic year. However, since a college education spans multiple years, planning for the entire duration is important. Encouraging students to develop a multi-year strategy can help them understand how to cover their estimated bill each year—ensuring they’re prepared for tuition, fees, and other costs throughout their college journey.

College is expensive, and while financial aid can ease the burden, packages vary widely. While students should weigh the cost and financial fit with the academic and social fit, the cost for many is the main determining factor. Although academic and social fit is important, cost frequently remains the main deciding factor. By discussing these questions with your students, you can help them understand their financial options and make more informed choices about their future.