High school seniors, you’ve filed your FAFSA, and your top college choices have awarded you various financial aid packages. Now what?
Compare colleges’ net prices.
Determine which college offers the most affordable net price by closely examining the numbers to ensure you’re making accurate comparisons. Look for the cost of attendance (COA) on your financial aid award letters, which includes direct costs—tuition, housing and dining if you plan to live on campus—as well as estimated indirect costs like textbooks, a computer, supplies, living expenses and transportation. Calculate the total amount of scholarships and grants each school has offered you, then subtract that from the direct costs. Next, add the indirect costs to determine the net cost for each college. Compare these figures across all the schools you are considering.
Do not include student loan amounts in your net price calculations. Unlike scholarships and grants —often considered “free money”—student loans are funds you will have to pay back later, usually with interest. The more you receive in scholarships and grants, the less you will need to earn or borrow.
Plan for all four years (not just one).
Find out if colleges will provide the same scholarships and grants throughout your time there. Check if the award letter indicates that aid is renewable. If it is, you may need to maintain a minimum GPA or fulfill other requirements to retain that funding.
You may also want to ask each college how much they have raised tuition over the past few years to help estimate any future increases you’ll need to consider. Immaculata’s undergraduate tuition remains lower than that of most other private Catholic universities in the area, and there are various financing options available to assist students.
Be choosy about student loans.
Do your homework on your borrowing options and obligations. Determine how much debt you can take on and repay responsibly. The U.S. Consumer Financial Protection Bureau offers an online tool to help you understand your financial aid offers from various colleges and create a plan for any leftover costs. Use this tool to estimate how much you will need to borrow and decide what you can afford.
You can also use the U.S. Department of Education’s Loan Simulator to estimate how much you may need to borrow and what your student loan payments might look like. While the tool can’t predict exactly what you’ll pay, it can help you plan your financial future.
Student loans vary. Here are your best options, ranked:
- Federal subsidized loans: These loans are interest-free while you are in college, as the government pays the interest for students enrolled at least half-time and during other specified deferment periods. Subsidized loans are awarded based on financial need, so your family may not qualify for them.
- Federal unsubsidized loans: While these loans do accrue interest, they typically have lower rates than other loan types. The principle is deferred until six months after you cease to be enrolled at least half-time. Unsubsidized loans are not awarded on the basis of financial need.
- Federal Direct PLUS loans: These loans enable graduate students and parents of dependent undergraduate students to borrow funds to supplement their financial aid packages. To qualify, students must be enrolled at least half-time in an eligible program. Additionally, unlike other federal loan programs, these loans require a credit check.
- State-based or nonprofit loans: These often come with fixed interest rates and good consumer protections.
- Private student loans: These can be financially risky and should be used only as a last resort. Carefully read the fine print to ensure that the repayment terms and interest rates are manageable. Lenders may require a credit check, or you may need a cosigner with good credit.
You have the option to accept or decline various types and amounts of financial aid. If your award letter indicates eligibility for both subsidized and unsubsidized federal loans and you can cover your education solely with subsidized loans, inform the school’s financial aid office that you wish to decline the unsubsidized loans. Borrow only what you truly need to keep your debt as low as possible.
You may be able to appeal for more financial aid.
The FAFSA requires your tax information from the previous year, but your current situation may have changed. Given the challenges in recent years, Immaculata’s financial aid staff is ready to assist. If your family’s financial circumstances have significantly changed since the tax year reported on your FAFSA— due to factors such as divorce, job loss, decreased salaries, disability, or high healthcare and dependent care expenses— you can request a professional judgment review from the college. Be prepared to submit documentation of your family’s extenuating circumstances. The financial aid staff may adjust your FAFSA to more accurately reflect your family’s finances, potentially increasing the aid you can receive.
If you need further assistance, contact IU’s financial aid staff at 484-323-3028 or finaid@immaculata.edu. They are happy to answer your questions and help you make informed financial decisions as you invest in your education and future career.