Step 2: Estimating Your Financial Aid Eligibility
So you're thinking, "Great. I know that sources to pay for education are available, but how much do I really need?"
ESTIMATE THE REAL COST OF COLLEGE
Financing your college education means much more than just paying tuition expenses. It's important to understand all of the costs involved, including room & board, books, lab fees, student membership fees, spending money, etc.
Estimate your college budget with the worksheet below. You can also calculate your Expected Family Contribution (EFC) or estimated repayment costs.
ESTIMATE THE COST OF YOUR EDUCATION
Create a budget for the full school year.
Dorm or apartment? Meal plan or home cooking? New books or used books? Car or bus? Think about ways to keep your costs down. Then use the table below to realistically estimate what you'll need for the full school year.
| |
Example* |
 |
Your Estimate |
| Tuition/fees |
$7,000 |
|
| Room/rent |
$2,400 |
|
| Board/meals |
$2,300 |
|
| Books/supplies |
$800 |
|
| Utilities/phone |
$675 |
|
| Car/gas/maintenance |
$3,150 |
|
| Credit card |
$450 |
|
| Entertainment |
$1,080 |
|
| Miscellaneous |
$450 |
|
| Total Expenses |
$18,305 |
A |
*Based on a nine-month school year
Know your resources.
Discuss what your family can contribute and then aggressively go after "free money" options. Add up your total resources from savings, grants, scholarships, and work.
| |
Per Year Example |
|
Your Estimate |
| Savings for education |
$3,500 |
|
| Income |
$2,700 |
|
| Grants/scholarships |
$5,000 |
|
| Work study |
$2,700 |
|
| Total Resources |
$13,900 |
B |
How much more will you need?
Subtract total resources (Box B, above) from total expenses (Box A, above). Enter the total in Box C, below. If your resources can cover your expenses, you are set. If not, you'll need a way to make up the difference with student loans and other sources.
| Example |
$18,305 |
- |
$13,900 |
= |
$4,405 |
| Your Estimate |
A |
- |
B |
= |
C |
| |
Total Expenses |
- |
Total Resources |
= |
Total Need |
SOME IMPORTANT FACTS ABOUT BORROWING
- Once you decide to borrow, borrow only what you need.
Estimate the amount of debt you will be able to afford by calculating your monthly student loan payment before you borrow.
- Borrowing is a responsibility - take it seriously!
If a student loan is your first borrowing experience, consider it seriously. Your ability to borrow in the future depends on it. Make sure you read and understand the terms and conditions on your promissory note. You are agreeing to repay the loan with all accrued and capitalized interest and deducted fees. You are obligated to repay your loan regardless of whether you complete your education, are satisfied with your education, or are able to find a job. Read and keep all records relating to your loan.