Time to commit

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College Commitment Day is May 1, the day on which students and their parents must decide not only on which college to attend but which college they can afford! No longer do students wait for an acceptance package in the mail, along with details of financial aid offers. Now almost all of that information is posted securely online at the college’s admissions portal.

The excitement is in being accepted. The reality check comes in figuring out the total cost of attending. Some financial aid is expected by most families that qualify after filling out the FAFSA form and receiving feedback about their Expected Family Contribution. But a school may offer additional benefits, such as work/study programs offering money that does not have to be repaid. And the school may offer additional scholarships or benefits.

So the first step is to compare the real, out-of-pocket costs of attending that school, including books, fees and even travel expenses. Sometimes a more expensive school will offer a package of aid that makes the total cost to the family less than your state university. But you won’t know until you actually compare the numbers.

If you’re staggered by the magnitude of this decision, which will impact your finances for the next 15 years of both college and repayment, you can read this advice from the government’s student aid website: http://studentaid.ed.gov/fafsa/next-steps/accept-aid. It will walk you through the process of each type of aid that might be offered.

There are several websites that make the task easier. Notably, the Consumer Financial Protection Bureau has a tool on its website that not only compares average financial aid at universities but lets you input numbers from the aid packages offered by three different schools. Go to http://www.consumerfinance.gov/paying-for-college/ to get started.

Perhaps the easiest financial aid comparison tool can be found at Finaid.org, the well-known website hosted by financial aid expert Mark Kantrowitz. The site offers an “Award Letter Comparison Tool,” which lets you take the actual offers from three schools and see how much each will really cost you (the net real cost), and how much more you might have to borrow. The Finaid calculator is at http://www.finaid.org/calculators/awardletter.phtml.

Of course, part of figuring out the additional amount each school will cost, above and beyond the aid package, is getting a realistic look at all the costs of attending the school. That can require some work on your part. Don’t be afraid to contact the school to make sure there aren’t any “hidden” costs, and be sure to include your own travel as part of the comparison plan.

Terry Savage is a registered investment adviser and is on the board of the Chicago Mercantile Exchange. Terry answers readers’ finance questions on her blog a

blog at www.TerrySavage.com


Posted on Tuesday, April 22, 2014 at 2:59 pm