How to use the financial aid offer comparison calculator
- Add one row for each offer, with the school name and the cost per year.
- Enter the grants and scholarships, work-study, student loans and family or other loans from each offer letter.
- Set the years of study, and in Advanced options an optional yearly cost increase.
- Read the net price, the borrowing, the amount still to pay and the net price over all the years for each school.
Formula
Net price = cost per year - grants and scholarships
Borrowing = student loans + family or other loans
Still to pay = net price - work-study - borrowing
Net price over the years = sum of each year's cost - grants x years
Grants and scholarships do not have to be repaid, so they are the part of an offer that lowers the real price. Loans and work-study help pay it but do not lower it.
Three offers
College A costs $52,000 a year with $18,000 in grants, so its net price is $34,000. After $3,000 of work-study and $5,500 in loans, $25,500 remains to pay, and the net price over 4 years is $136,000. College B costs $38,000 with $6,000 in grants, a net price of $32,000, $9,500 of borrowing, $20,000 still to pay and $128,000 over 4 years. College C costs $30,000 with $12,000 in grants, a net price of $18,000 and $72,000 over 4 years with no borrowing.
College C has the lowest net price and the largest gift aid share at 40 percent of its cost. With a 3 percent yearly cost increase, College B's total rises to $134,977.83 while its grants and loans stay the same.
Why net price beats the sticker price
A high-priced school with large grants can cost less than a cheaper one with small grants. Comparing the net price puts the offers on the same footing. Loans are different from grants: they must be repaid, usually with interest, so an offer with a lot of borrowing hides part of its cost in the future. The page shows the borrowing in a separate column so it is hard to miss.
For one school in more detail see the college cost calculator. To plan repayment use the student loan payoff calculator, and to fit the numbers into your budget the budget planner or the job offer comparison calculator.
Questions to ask each school
Ask whether the grants renew each year, what grades or credits keep them, and whether the cost figure includes housing, books and travel. Some offers count a loan as part of the package, so make sure you can tell grants and loans apart in each letter before you enter the numbers.
Assumptions and limits
- Cost per year is the full amount for that school, and the same grants, work-study and loans repeat every year.
- The yearly cost increase, if any, applies to the cost only, not to grants or loans.
- Loan interest, fees and repayment are not included. Borrowing is the amount borrowed.
- The page compares offers you enter and does not predict what a school will offer next year.
Frequently asked questions
How do I compare financial aid offers?
Subtract the grants and scholarships from the cost to get the net price for each school, then look separately at how much you would borrow.
What is the difference between grants and loans?
Grants and scholarships are gift aid that you keep. Loans are borrowed money that must be repaid, normally with interest.
Is work-study part of the discount?
No. Work-study is money you earn by working, so it helps pay the bill but does not lower the net price.
Why include a yearly cost increase?
Costs often rise each year while a grant stays fixed, which makes a later year more expensive. The page lets you test that with your own estimate.