Financial Aid Offer Comparison Worksheet

Name: _________________________ Date: ____________________

Instructions:

Imagine you have received financial aid offers from two different colleges. Use the information provided below to compare the offers and answer the questions that follow. For each college, fill in the details and calculate the Net Price.

College A: State University

1. Cost of Attendance (COA):

• Tuition & Fees: $12,000
• Room & Board: $10,000
• Books & Supplies: $1,000
• Personal Expenses: $2,000
• Transportation: $500
  Total COA for College A:
  
  
  

2. Gift Aid (Money You Don't Pay Back):

• Pell Grant: $3,000
• University Scholarship: $4,000
• Local Scholarship: $1,000
  Total Gift Aid for College A:
  
  
  

3. Self-Help Aid (Money You Work For or Pay Back):

• Subsidized Federal Loan: $3,500
• Unsubsidized Federal Loan: $2,000
• Work-Study Eligibility: $1,500
  Total Loans for College A:
  
  
  

4. Calculate Net Price for College A:

• Net Price = Total COA - Total Gift Aid
  Net Price for College A:
  
  
  

College B: Private College

1. Cost of Attendance (COA):

• Tuition & Fees: $35,000
• Room & Board: $15,000
• Books & Supplies: $1,200
• Personal Expenses: $2,500
• Transportation: $800
  Total COA for College B:
  
  
  

2. Gift Aid (Money You Don't Pay Back):

• Institutional Grant: $15,000
• Merit Scholarship: $7,000
• State Grant: $2,000
  Total Gift Aid for College B:
  
  
  

3. Self-Help Aid (Money You Work For or Pay Back):

• Subsidized Federal Loan: $3,500
• Unsubsidized Federal Loan: $2,000
• Work-Study Eligibility: $1,500
• Private Loan Offer: $5,000
  Total Loans for College B:
  
  
  

4. Calculate Net Price for College B:

• Net Price = Total COA - Total Gift Aid
  Net Price for College B:
  
  
  

Reflection Questions:

1. What is the total Cost of Attendance (COA) for College A? What about College B?
   
   
   
   

2. Which college offered you more gift aid (grants and scholarships)? How much more?
   
   
   
   

3. Calculate the net price for each college. Which college has the lower net price, and what does that mean?
   
   
   
   
   
   
   

4. Which college offered a private loan? What are some potential concerns with accepting a private loan compared to federal loans?
   
   
   
   
   
   
   

5. Based purely on these financial aid offers, which college appears to be the better financial choice for you, and why? Consider the net price and total loan amount.
   
   
   
   
   
   
   
   
   
   
   
   

Financial Aid Offer Comparison Worksheet Answer Key

College A: State University

1. Cost of Attendance (COA):

• Tuition & Fees: $12,000
• Room & Board: $10,000
• Books & Supplies: $1,000
• Personal Expenses: $2,000
• Transportation: $500
  Total COA for College A: $12,000 + $10,000 + $1,000 + $2,000 + $500 = $25,500

2. Gift Aid (Money You Don't Pay Back):

• Pell Grant: $3,000
• University Scholarship: $4,000
• Local Scholarship: $1,000
  Total Gift Aid for College A: $3,000 + $4,000 + $1,000 = $8,000

3. Self-Help Aid (Money You Work For or Pay Back):

• Subsidized Federal Loan: $3,500
• Unsubsidized Federal Loan: $2,000
• Work-Study Eligibility: $1,500
  Total Loans for College A: $3,500 + $2,000 = $5,500

4. Calculate Net Price for College A:

• Net Price = Total COA - Total Gift Aid
  Net Price for College A: $25,500 - $8,000 = $17,500

College B: Private College

1. Cost of Attendance (COA):

• Tuition & Fees: $35,000
• Room & Board: $15,000
• Books & Supplies: $1,200
• Personal Expenses: $2,500
• Transportation: $800
  Total COA for College B: $35,000 + $15,000 + $1,200 + $2,500 + $800 = $54,500

2. Gift Aid (Money You Don't Pay Back):

• Institutional Grant: $15,000
• Merit Scholarship: $7,000
• State Grant: $2,000
  Total Gift Aid for College B: $15,000 + $7,000 + $2,000 = $24,000

3. Self-Help Aid (Money You Work For or Pay Back):

• Subsidized Federal Loan: $3,500
• Unsubsidized Federal Loan: $2,000
• Work-Study Eligibility: $1,500
• Private Loan Offer: $5,000
  Total Loans for College B: $3,500 + $2,000 + $5,000 = $10,500

4. Calculate Net Price for College B:

• Net Price = Total COA - Total Gift Aid
  Net Price for College B: $54,500 - $24,000 = $30,500

Reflection Questions: Answer Key

1. What is the total Cost of Attendance (COA) for College A? What about College B?

   • College A: $25,500
   • College B: $54,500

2. Which college offered you more gift aid (grants and scholarships)? How much more?

   • College B offered $24,000 in gift aid, which is $16,000 more than College A ($8,000).

3. Calculate the net price for each college. Which college has the lower net price, and what does that mean?

   • College A Net Price: $17,500
   • College B Net Price: $30,500
   • College A has a significantly lower net price. This means the actual cost you or your family would be responsible for after accounting for grants and scholarships is much less at College A.

4. Which college offered a private loan? What are some potential concerns with accepting a private loan compared to federal loans?

   • College B offered a private loan.
   • Concerns with private loans include generally higher interest rates, fewer repayment options, lack of borrower protections (like deferment or forbearance flexibility), and often requiring a co-signer. Federal loans typically offer more favorable terms.

5. Based purely on these financial aid offers, which college appears to be the better financial choice for you, and why? Consider the net price and total loan amount.

   • Based on financial aid alone, College A appears to be the better financial choice.
   • Reasoning: Although College B offered more gift aid, its overall COA is much higher, resulting in a significantly higher net price ($30,500 vs. $17,500). Additionally, College B includes a private loan, increasing the total loan burden to $10,500 compared to College A's $5,500 in federal loans. College A requires less out-of-pocket payment and less debt.

Smart Choices, Less Debt: Teacher Script

Warm-Up: Dream College vs. Reality Check (5 minutes)

(Teacher): "Good morning, everyone! Let's start with a quick thought experiment. Close your eyes for a moment, or just imagine, your absolute dream college. The perfect campus, the perfect program, everything you've ever wanted. Hold that image in your mind.

"Now, open your eyes. Imagine you've been accepted to that dream college – fantastic news! But then you see the bill, and the tuition is, well, huge! What's the very first thing that pops into your head when you think about how you'll make that dream affordable? How would you even begin to pay for it? Turn to a partner or jot down a quick thought."

(Teacher): (Allow 1-2 minutes for quick discussion or jotting. Call on a few students to share their initial thoughts.)

"Great responses! Many of you are already thinking about financial aid, and that's exactly where we're headed today. In fact, today we're going to become financial aid detectives. Our mission? To learn how to compare those tricky financial aid offers so you can make the smartest choice for less debt as you head off to college."

Understanding Financial Aid Offers (15 minutes)

(Teacher): "Let's dive into the details. I have a presentation that will help us break down these offers. Follow along with the Financial Aid Offer Comparison Slide Deck as we go."

(Slide 1: Smart Choices, Less Debt!)

(Teacher): "As you can see, our goal is to empower you to make informed choices. What does 'informed' mean in this context? It means understanding all the pieces of the puzzle."

(Slide 2: Understanding the 'True' Cost)

(Teacher): "First, let's talk about the true cost of college, also known as the Cost of Attendance, or COA. Who can tell me, based on the slide, what factors go into the COA?"

(Teacher): "Exactly! It's not just tuition. It's everything for one year. This is the big picture number that colleges estimate you'll need."

(Slide 3: Expected Family Contribution (EFC))

(Teacher): "Next up is your Expected Family Contribution, or EFC. This is a number that comes from the information you (or your parents) provide on forms like the FAFSA. What's one key thing the slide says about what EFC isn't?"

(Teacher): "That's right! It's not necessarily what your family will write a check for. It's a way for colleges to assess your family's financial strength and determine how much aid you qualify for."

(Slide 4: Gift Aid: Money You Don't Pay Back!)

(Teacher): "Now for the best kind of money – Gift Aid! Why is it called 'gift aid,' and why is it so important?"

(Teacher): "Spot on! It's money you don't have to pay back. We have grants, which are usually based on financial need, and scholarships, which can be for anything from your grades to your talents to your background. Always maximize your gift aid!"

(Slide 5: Self-Help Aid: Loans & Work-Study)

(Teacher): "Then we have Self-Help Aid. This includes federal student loans and work-study. What's the main difference between a subsidized and an unsubsidized federal loan, according to the slide?"

(Teacher): "Excellent! Subsidized loans save you money on interest. Work-study is also a great option because you earn money to help with your costs, and it doesn't add to your debt."

(Slide 6: Private Loans: Use With Caution!)

(Teacher): "And then there are Private Loans. The slide says 'Use With Caution!' Why should we be cautious about private loans?"

(Teacher): "Precisely. Higher interest rates, fewer protections – they can be a burden. Always prioritize federal loans first, if you need to borrow."

(Slide 7: The Art of Comparison: Net Price)

(Teacher): "Here's arguably the most important concept today: Net Price. This is the key to comparing offers apples-to-apples. What's the formula for net price, and what does it really tell you?"

(Teacher): "Fantastic! It tells you what you (or your family) will actually have to pay out of pocket or cover with loans. Loans don't reduce your net price because you still have to pay them back!"

(Slide 8: Evaluating Each Offer)

(Teacher): "When you're looking at your offers, these are the critical questions to ask yourself. The net price is number one. But also think about how much of your aid is free money, what kind of loans you're offered, and if there are any strings attached to scholarships."

Worksheet Activity: Comparing Offers (15 minutes)

(Teacher): "Alright, detectives, it's time to put your skills to the test! I'm handing out the Financial Aid Comparison Worksheet. Your task is to compare two hypothetical college offers, College A and College B. Carefully read through the costs and aid packages for each. Calculate the total COA, total gift aid, total loans, and most importantly, the Net Price for both.

"Then, answer the reflection questions at the end. You can work individually or with a partner. I'll be walking around to answer any questions. Remember to think like a financial detective! You have about 15 minutes for this."

(Teacher): (Distribute worksheets. Circulate, monitor student progress, and provide assistance as needed. Remind students to pay attention to the types of aid.)

Share and Discuss (7 minutes)

(Teacher): "Let's bring it back together. Who would like to share some of their findings from the Financial Aid Comparison Worksheet? What was the biggest surprise for you when comparing the two offers?"

(Teacher): (Call on a few students to share their calculations or answers to reflection questions. Guide the discussion toward the main takeaways.)

"It's interesting, isn't it? College B had a much higher sticker price and even more gift aid, but College A still came out with a lower net price because its initial COA was so much lower. And the private loan in College B's offer is a significant factor to consider for future debt."

Cool-Down: One Smart Takeaway (3 minutes)

(Teacher): "To wrap up our lesson today, I want everyone to take out a small piece of paper or use the back of your worksheet. On it, write down one important takeaway you learned today about comparing financial aid offers, or one question you still have.

"This is your exit ticket. Hand it to me as you leave. Your insights will help me know what we grasped and what we still need to explore. Thank you for being such smart financial aid detectives today!"