Signup | Login     Donate

Understanding College Financials

1. Understanding College Costs

What is included in the cost of college? Ask colleges to provide you a detailed breakdown of the bill, listing all cost items. This will help you compare schools and explore options for how to lower your costs.

Direct Costs Commonly Found on a College Bill
Tuition The cost of instruction and access to academic resources like professors, classrooms, and curriculum materials.
Mandatory Fees Additional charges required of all students to fund specific services or facilities beyond instruction.
Housing You are charged a housing fee only if you live on campus. Colleges offer a variety of residence halls and room styles at different rates. Choose an option that fits your budget. If living on campus is not affordable, consider off-campus housing options or living with your family and commuting to college.
Meal Plan Colleges offer a variety of meal plans at different rates. Choose an option that fits your budget. Sometimes a certain meal plan is required with on-campus housing options.
Waivable Fees Waivable fees are fees that you can opt out of, such as health insurance. Most young adults can stay on their parents’ family plan until they turn 26.

Calculate your total direct costs by adding the cost items above.

Colleges charge on a term-by-term basis. The direct cost of a term is typically half of the full-year amount.
If paying college upfront is financially challenging, you can enroll in a payment plan to spread payments over several months, which makes the cost more manageable. Colleges often require you to enroll in a payment plan months before the semester begins, so be sure to check your college’s deadlines.
Also be aware of the indirect costs of attending college, which normally include books, school supplies, computer, room materials, transportation, and mobile phone costs etc. If you live off-campus, consider sharing a house or apartment with multiple housemates to cut down the cost of rent, and carpool to save on gas and parking.

2. Understanding Financial Aid

How to pay for college? Explore financial aid from a variety of sources and apply for all types of aid you may be eligible for.

Federal Grants

The need-based grants offered by the U.S. Department of Education.

You must complete The Free Application for Federal Student Aid (FAFSA) every year to receive federal grants. Your college uses the information on the FAFSA form to determine your eligibility for a Pell Grant, and if so, how much you’re eligible to receive. Your college will award FSEOGs to students that have the most financial need.

The federal grants do not need to be repaid.

Learn more about FAFSA here.
University Grants

The need-based grants funded or awarded by the university to help students who demonstrate financial need to afford their education. Also known as institutional grants.

Visit your college financial aid office to talk about your financial need and request for more grants.

The university grants do not need to be repaid.
University Scholarships

The merit-based scholarships funded or awarded by the university to students who demonstrate academic excellence, athletic ability, leadership etc. Many scholarships are renewable for multiple years, but they often require maintaining a specific GPA or other criteria.

For example, New Haven Promise’s university match is a university scholarship paid by the partner university.

The university scholarships do not need to be repaid.

University scholarships can sometimes be negotiable, especially if you have strong qualifications or competing offers from other colleges. Visit your college financial aid office to negotiate a better offer.
Third-Party Scholarships

Scholarships funded and managed by external organizations, rather than the university itself. For example:

Application eligibility, requirements, deadlines, renewability and award amounts vary widely by scholarship.

The third-party scholarships do not need to be repaid.
Work-Study Jobs

Federal Work-Study provides part-time jobs for undergraduate and graduate students with financial needs, allowing them to earn money to help pay education expenses. The program encourages community service work and work related to the student’s course of study. You must complete FAFSA to get a work-study job.
Federal Loans

Federal Student Loans include Direct Subsidized Loan, Direct unsubsidized Loan etc. When you apply for FAFSA, you might be offered loans as part of your college’s financial aid offer. Federal student loans usually have more benefits than private loans.

A loan is money you borrow and must pay back with interest, so ONLY TAKE WHAT YOU NEED and reassess your borrowing needs each year.

Calculate your total financial aid by adding the financial aid items above.

3. Calculate Your Student Account Balance Due

How to pay for college? Explore financial aid from a variety of sources and apply for all types of aid you may be eligible for.

Account Balance Due

=

Total Direct Costs
(Calculated in step 1)

-

Total Financial Aid
(Calculated in step 2)

If you have a positive balance due (Greater than $0), it is your responsibility to pay it off. Payment sources may include personal savings, earnings from jobs or internships, and contributions from family etc.

If you have a negative balance due (Less than $0), you should expect a refund from your college for the excess amount. We ask students to use the refund for college-related expenses and save a portion for future semesters when you have a balance to pay out-of-pocket.

Learn from Promise Scholars