Completely clueless about financial aid

<p>Up until now, I only concentrated on getting into college. Now, I'm stuck in the middle of choosing a school and am wondering if someone who knows more about financial aid could possibly help me with a conflict.</p>

<p>I'm getting $27,000 in grant money from one of my top choices and $22,000 from the other top choice (for the 2008-2009 school year). I want to know if the disparity between these amounts is substantial enough to be a major factor in my decision.</p>

<p>If I go to the school offering $22,000, I've been told (by admittedly dubious sources) that my total student debt after leaving college could be up to $50,000. I'm wondering if this is a very unusually high or unmanageable amount for someone graduating from an Ivy League or other prestigious school, given an upper-middle class economic situation.</p>

<p>It depends on what the total cost of each school is. While there is a $5,000 difference between grant funds, the main deciding factor is going to be how much are you really going to need to take out loans to cover.</p>

<p>Example: School A that offered $27k in grants...If the total cost per year is only $40k, then you need $13k in loans or other funding to pay for the education. School B that offered only $20k in grants....If the total cost per year is only $30k, then you only need to find $10k. </p>

<p>You also need to look at whether the grants are renewable and/or need based. If they are not renewable, then you need to explore how you will fund your education past year 1. If they are need based, then you need to explore how you could make up any difference lost if the finances increase.</p>

<p>In your letters from the financial aid offices, they should have indicated the Cost of Attendance (COA). Look at the factors that they included. For example, a lot of schools give low estimates for the cost of books, and often there is a standard "transportation" figure that could be a lot bigger for you depending on the school location and where you live. Add these adjustments into the COA so that you have your own personal COA.</p>

<p>Next, subtract the grant money from the COA, and see what is left. As NikkiiL says, this will leave you with the amount of money you/your family has to come up with. Where is that money coming from in your personal case? Did the schools offer loans, and if so what kinds? Did they offer a work-study job, and if so how many hours would you have to work to make that much money? Are there summer jobs and/or non-work-study jobs on or near campus? Is your family expected to take out PLUS loans, and/or are you expected to take out private and/or unsubsidized loans?</p>

<p>And, don't forget, as NikkiiL advises, to find out if your grants are renewable for all four years. In addition, find out if you have to maintain a certain GPA in order to continue to receive them for those four years.</p>

<p>Good luck with your decision!</p>