Understanding the costs
When helping your child select colleges, don't focus on the price tag. Instead, focus on how much will come out of your own pocket.
To accurately assess the cost of a college, you need to know:
- The sticker price.
- How much financial aid you will receive.
Consider two schools:
- College A charges $10,000 a year for tuition and room and board.
- College B charges $20,000 a year.
Which college has the higher price tag? The answer seems obvious: College B.
Which college will cost you more? If College A offers no financial aid while College B offers $15,000, you will pay less for College B (even though it has the higher price tag).
Sallie Mae's Education Investment Planner is a free online tool that lets you estimate the full cost of a college degree, compare schools, determine if student loans are needed, and project monthly payments.
The price of college and what's in the bill