16. How Much Will College Cost Me?

Remember the airplane-flight analogy: on average, 60 different fares per flight!

Each college or university sets its “sticker price.”

Like buying a new car, you may or may not have to pay the “sticker price.”

Determining your Cost at a particular College or University

1. Total Cost of Attendance (C of A)—Which may include the following:
· Tuition and fees—rising by 3-10%/yr.
· Books/Supplies—average $100 per course/yr. (5 courses in Sem. I + 5 courses in Sem. II = 10 courses x $100 = $1,000/yr.)
· Transportation—driving/flying to and from campus; gasoline; parking fees; fares
· Room and Board—vary by college; estimate an additional $7,000/yr.
· Student Health Insurance
· Other Expenses— food & drink; entertainment (games, movies, concerts, cable TV, music downloads, etc.); laundry/dry cleaning; toiletries; internet access; credit-card interest; cell phone (estimate $50/mo. = $600/yr.); decorating dorm room (average $1,200/yr.)

2. Minus Expected Family Contribution (EFC)— Based on FAFSA responses
· What was your adjusted gross income for 200_?
· As of today, what is your total current balance of cash, savings, and checking accounts?
· As of today, what is the net worth of your investments, including real estate (not your home)?
· As of today, what is the net worth of your current businesses and/or investment farms? Do not include a farm that you live on and operate.

3. Equals Financial Need (= Aid Eligibility)

4. Minus Federal Pell Grant— to qualify, your EFC must be < $4,000 ($5,350/yr. max)

5. Minus Academic Competitiveness Grant— $750/$1,300/yr.

6. Minus Ohio College Opportunity Grant—up to $1,008/$2,256; to qualify, your EFC must be < $2,200

7. Minus Federal Work Study—generally, up to $2,500/yr. for working up to 20 hrs/wk

8. Minus Merit Aid—any institutional scholarships or discounts

9. Minus Federal Stafford Loan—subsidized/unsubsidized ($5,500/$6,500/$7,500/yr.)

10. Plus Expected Family Contribution (EFC)—Based on FAFSA responses

11. Equals “Out-of-Pocket” Amount—The check you must write--often indicating a “financial-need gap,” which may have to be met by a Federal PLUS loan or private loans

12. Calculate “Loan-Debt”—For student and parent(s) Student (Stafford @ fixed 5.6%/yr.; max: $5,500+$6,500+$7,500+$7,500=$27,000; Perkins @ fixed 5%/yr.) Parent (PLUS @ fixed 7.9%/yr.; max: C of A – other aid)