PAYING FOR COLLEGE

COLLEGE COSTS

• COST OF ATTENDANCE 

  • • The cost to attend college is often referred to as "Cost of Attendance" or COA. COA is used in the calculation to determine eligibility for financial aid. It is often calculated to show the total cost for the academic year, though schools with programs that last a different time period might show the COA that covers a specific period of time. COA includes both direct and indirect costs. 

    • Direct costs are fixed costs that are billed by the college. 

      • • Tuition

        • Fees

        • Room and board (if living on campus) 

    • Indirect costs are not included on a college bill; however, they are considered in the overall cost to attend college. 

      • • Housing and food (if living off campus)

        • Books and supplies

        • Transportation

        • Personal expenses (laundry, haircuts, etc)

        • Personal computer

        • Loan fees

        • Reasonable costs for eligible study-abroad programs

        • Costs related to a disability

        • Child care or other dependent care

• TUITION

  • • The cost of tuition and fees charged by a college depends on many factors, but the most significant factor is college type.

      • • Public Colleges:
          Tuition and fees are generally lower because colleges receive funds from state taxes. Most four-year and two-year public colleges charge higher tuition for nonresidents than for legal residents of the state in which the college is located.
          
          This out-of-state tuition can often make the cost of attending a public college as high as the cost of attending many private colleges. However, some bordering state residents may be treated as legal residents of that state under a reciprocity agreement. Check with the college admissions office if you are eligible to receive in-state tuition rates.

        • Private Colleges:
          Tuition is usually higher than at public colleges. Private colleges do not receive public funding for their operations and need to charge more of the real costs to students. However, private colleges often have more financial aid resources that can help you pay for college. The greater your overall cost of attendance, the greater the possibility you will demonstrate need for financial aid.

• FEES
  Many colleges charge fees for other services. Examples include:

  • • • Athletic

      • Enrollment

      • Facilities

      • Greek societies (membership dues)

      • Health Center

      • Library

      • Parking

      • Student Activities

      • Technology fees

• ROOM & BOARD

  • • • "Room and board" means basic living expenses for housing and food. Regardless of the type of college you choose, you will have to consider these expenses. 

      • Colleges with their own housing typically charge you on a nine-month basis for your room and most meals, excluding holiday and vacation periods. The room and board charge is built into your COA (cost of attendance). Colleges also expect that students living in privately owned, off-campus housing have a similar level of expense. Some colleges do not allow students to stay in on-campus housing during excluded periods. 

      • If you plan to live at home, you are likely to have lower expenses than on-campus students because you do not have to pay for housing. You will still need to factor in your cost of food and other living expenses. These costs are usually built into a commuter student budget for financial aid purposes.

• BOOKS & SUPPLIES

  • • • Cost will vary per semester. Some classes, like labs, require additional fees, while other classes require additional supplies (molecular model kit, scrubs, iClicker, etc).

• PERSONAL EXPENSES

  • • • Examples of personal expenses may be clothing, laundry, toiletries, recreation, and medical costs.

• TRANSPORTATION

  • • • May include Uber for local transportation, gas for your car, or bus/train/plane for trips home.

(Source: ECMC Perparing for College Guide & Workbook)

DETERMINING YOUR OWN COSTS

• To determine your own cost estimates, remember to consider any additional costs that might result from medical bills or extraordinary personal expenses.

• If your cost of attendance calculation is greater than the amount determined by your college, you may request an appeal to have your cost of attendance adjusted. The adjustment might increase your eligibility for financial aid.

NET PRICE CALCULATOR

• Each college that participates in the federal financial aid programs is required to have a “net price calculator” on its website. These calculators can give you a rough estimate of how much it may cost you to attend each specific college, taking into account aid you may receive from both the college and federal financial aid. The easiest way to find the calculator on the college’s website is to type “net price calculator” in the website search field. 

• The estimates provided by different net price calculators should not be used to absolutely rule in or rule out a particular college. The calculator questions vary from college to college. Because of this, the results may not provide an “apples-to-apples” comparison of your net college costs. 

COLLEGE AFFORDABILITY & TRANSPARENCY

• • The US Department of Education’s College Affordability and Transparency Center serves as a central point of access to several tools, including College Scorecard and College Navigator, that provide access to college tuition and fees comparisons, net price calculators, state spending charts, and more. 

What is the difference between need-based & non-need-based?

• Examples of need-based aid: 

  • • Federal and state grants do not have to be repaid (some state grants require a certain GPA)

    • Work-study (money earned by the student through on- or off-campus jobs)

    • Subsidized Direct loans (low-interest and interest deferred until six months after graduation)

• Examples of non-need-based aid: 

  • • Some college and state-funded scholarships and most private scholarships

    • Unsubsidized Direct loans (low interest and interest accrues while still in school) 

    • Parent PLUS loan

HOW MUCH IS EXPECTED FROM PARENTS?

• The amount expected from parents varies from family to family according to the ability to pay derived from information submitted in the FAFSA (Free Application for Federal Student Aid), and is called the Student Aid Index. 

• Per the update to the 2024–2025 FAFSA, a new analysis formula to determine eligibility was introduced called "Student Aid Index" (SAI). The SAI is calculated using information provided by the student and any contributors on the FAFSA form.

  • • A negative SAI indicates you have a higher financial need. For example, if you have an SAI of –1500, you’ll qualify for a maximum Pell Grant award assuming you have not exhausted your lifetime amounts and meet all student eligibility requirements. Learn how the SAI is calculated.

    • Your SAI is not:

      • • a dollar amount of aid you’ll receive,

        • what your family is expected to provide, or

        • your final financial aid offer. 

    • Your SAI is an index number used by financial aid professionals when creating an aid offer. Your SAI is calculated using information that you (and other contributors, if required) provide on the Free Application for Federal Student Aid (FAFSA®) form.

• The SAI may be a negative number down to -1500. Generally speaking, the lower the SAI, the higher the financial aid award. 

• Here are some examples of how two different students and their families might cover the cost of education -->

Ways to pay for college

The Wall Street Journal created a Guide to Student Loans that covers undergraduate through higher degree loans, parent involvement, how to avoid loans, alternate paths and more!

• Federal Grants

  • • You must complete the FAFSA annually. Not everyone will qualify.

• Scholarships

  • • There are both merit and financial-based scholarships. 

    • May be found via private/public companies, at the university/college (merit, foundation, departmental, etc), at your local high school, and more!

• Work study or part-time job

  • • You must complete the FAFSA annually. Not everyone will qualify.

    • Students will work part-time on or off campus for at least minimum wage.

    • If you are not qualified for work-study via FAFSA, you may find a local, part-time job to supplement your income.

• 529 Plan, Florida Prepaid, or Savings account

  • • If your parents set up a 529 plan, you may use the funds in the account for any part of your education (tuition, housing, food, etc)

    • Florida Prepaid is a 529 plan specifically for the residents of Florida. The 529 plan covers tuition and fees with an option to purchase the one-year dormitory plan.

    • If you don't have a 529 plan, you may want to work during high school and save as much as you can.

• Student Loans

  • • Federal Student Loans

      • You must complete the FAFSA annually. Not everyone will qualify.

      • Subsidized or unsubsidized loans

        • • Subsidized loans:
            With subsidized loans, the federal government pays the interest accrued on the loan while you're in school and during deferment (the six months after graduation). Subsidized loans are awarded based on financial need as outlined in your FAFSA.

          • Unsubsidized loans:
            With unsubsidized loans, you will have to pay all accrued interest. To learn more about all types of federal student loans, check out this site.

    • Private loans

      • Private student loans offer options for students and parents. These loans are also unsubsidized and come with either a fixed- or variable interest rate.

• Work for a company that offers tuition reimbursement

  • • Some companies will reimburse your tuition after you have taken the classes (end of the semester)

      • • Amazon - Amazon’s Career Choice program prepays up to 95% of tuition and fees — with a yearly max limit — for employees who earn a degree or certificate. Students must choose a degree corresponding to an in-demand occupation, such as nursing or computer design. Employees are eligible after one year of employment. 

        • AT&T - As part of its benefits package, AT&T offers a tuition reimbursement plan worth up to $5,250 annually. Full-time and part-time employees are eligible. All employees must meet certain requirements and be approved by the company to participate. 

        • Best Buy - To be eligible for Best Buy’s tuition reimbursement, employees must be full-time, work at least 32 hours per week, and have completed six months of employment. Best Buy’s program reimburses up to $3,500 for undergraduate courses and $5,250 for graduate-level courses.

        • Boeing - Boeing’s Learning Together Program is available for full-time and part-time employees after one year of employment. Coursework must be strategic to Boeing’s business, regardless of whether it’s related to your current role. All employees are eligible for course tuition and fees up to $3,000 annually. There are no funding limits for engineering or technology fields. 

        • Carmax - Full-time CarMax associates can receive up to $5,250 a year in reimbursed funds. This assistance covers tuition, fees, and textbooks. Employees may take coursework in any field, but they must earn a grade of C or better.

        • CVS - Offers $1,500 each year as part of its tuition reimbursement program. Full-time employees are eligible, but must choose a degree that is job-related.

        • Home Depot - employees who have worked 90 days are eligible to receive up to $5,000 each year in tuition reimbursement. Rates vary by role – part-time employees receive $3,000 and part-time hourly employees receive $1,500.

        • Lowe’s - offers tuition assistance as a way to improve employees’ job performance and invest in their advancement. Full-time employees who have worked at Lowe’s for at least one year are eligible. Further, employees must earn a C grade in order to receive reimbursement.

        • McDonald’s - The Archways to Opportunity program to aid eligible franchise owners, part-time workers and managers, and restaurant and maintenance staff. Eligible managers can receive up to $3,000 a year in assistance. Eligible crew members are eligible for up to $2,500 a year.

        • Papa Johns - In partnership with Purdue University, Papa John’s Dough & Degrees education program reimburses 100% of all tuition costs for corporate employees, employed for at least 90 days. Franchise team members are eligible for significant tuition reductions. Undergraduate and graduate classes in business, business administration, and IT are covered.

        • Publix - Tuition reimbursement program covers degree-seeking students, technical training, online programs, and individual courses. Any associate with six months of employment is eligible to participate. For college and university enrollment, Publix will cover $3,200 annually — that’s a lifetime cap of $12,800. For all other courses, Publix will cover $1,700 annually.

        • Starbucks - Offers every benefits-eligible employee working full- or part-time 100% tuition coverage. Employees must be first-time bachelor’s degree students. There’s only one catch: Starbucks employees must study at Arizona State University's online program. Luckily, ASU offers more than 80 degree programs, all of which are covered.

        • Target - offers generous tuition reimbursement for students at all levels. Target employees are eligible for $3,000 each year as an undergraduate, $4,000 as a graduate student, and $5,250 as an MBA candidate.

        • UPS - Employees at UPS are eligible for tuition reimbursement from day one — via the Earn and Learn program. Different education assistance programs are available based on each role. For instance, part-time employees can participate in the Earn and Learn program, which covers a maximum of $25,000 in tuition. These employees are eligible for an annual reimbursement capped at $5,250.

        • Walmart/Sam's Club - In place of tuition reimbursement, Walmart/Sam's Club offers its employees the Live Better U program. This benefit allows associates to earn debt-free degrees in business or supply chain management. No catch or strings attached. Employees only need to pay $1 a day into the benefit. Walmart covers 100% of tuition costs after financial aid — so you’ll still need to apply for federal financial aid. Walmart also reimburses the remaining costs, such as textbooks and fees.

        • Verizon - Verizon is a telecommunications giant that covers its employees’ tuition costs — up to $8,000 annually. The only catch is that coursework must be related to business. Part-time employees are eligible for up to $4,000 annually.