What factors should I consider when comparing financial aid packages?

Hi everyone, I'm a junior and I'm starting to think about how I'll pay for college. I know that financial aid packages can vary widely, but I'm not sure what factors I should consider when comparing them. Can anyone help me understand the most important elements of a financial aid package? Thank you!

Hello! It's great to see that you're thinking about college finances early on. Comparing financial aid packages can be a bit overwhelming, but there are several factors that you should consider to help you make the best decision. Here are some of the most important elements to keep in mind:

1. Cost of attendance (COA): This includes tuition, fees, room and board, books, supplies, and other expenses. Make sure you compare the total COA for each college, not just the tuition.

2. Grants and scholarships: These are forms of financial aid that you don't have to pay back. Look for colleges that offer a higher percentage of grants and scholarships in their financial aid packages.

3. Work-study: This is a federal program that allows you to work part-time on or off-campus to help cover your college expenses. It's a good way to gain work experience and earn money for college, but keep in mind that it may not cover all of your expenses.

4. Loans: Loans are a form of financial aid that you'll have to pay back, usually with interest. When comparing loans, consider interest rates, repayment terms, and whether the loan is subsidized (interest doesn't accrue while you're in school) or unsubsidized.

5. Expected Family Contribution (EFC): This is the amount that your family is expected to contribute towards your education. Some colleges may meet your full demonstrated need, while others may leave a gap. The smaller the gap, the better the financial aid package.

6. Net price: This is the total COA minus your financial aid package (grants, scholarships, work-study, and loans). Compare the net prices of each college to see which one is the most affordable for you.

I hope this helps you better understand the factors to consider when comparing financial aid packages. Good luck with your college search and application process!