COSTS OF PREPARATION

DETERMINing THE COSTS OF YOUR CAREER PREPARATION AFTER HIGH SCHOOL

What are the costs of attending?

The best way to determine how much you will need to pay for your education or training is to apply for financial aid from the federal government or state government, scholarships, and grants, and have a discussion with family members to see how they might be able to help you financially.  Then subtract these income sources from the total costs of the program which includes tuition, fees and supplies, and room and board. This process takes time and effort but it's well worth it and it will give you the most accurate numbers because the information is specific to you. In the meantime, you can use averages to estimate the net cost of your education.  

Below is a chart of providers in Colorado with average net price data collected by the National Center for Educational Statistics. The average net price is generated by subtracting the average amount of federal, state/local government, or institutional grant or scholarship aid from the total cost of attendance. The total cost of attendance is the sum of published tuition and required fees (lower of in-district or in-state), books and supplies, and the weighted average for room and board and other expenses. If you don't know your family's income, you may use the average. Again, you should apply for all sources of financial aid available to you which may include federal loans through FAFSA, state aid through CAFSA, private scholarships, and more. What you will actually pay depends on your individual circumstances but this is an excellent place to start.

Assuming you will take out a private loan to pay for the remainder of your career preparation costs, complete the Career Preparation Costs of your Google Form

Is there anything else I should consider?

In addition to looking at the costs of tuition, books, meals, and housing, a couple of additional questions you may want to consider are:

  1. If you have many scholarships for your first year of attendance, and if you are not able to get those scholarships in future years, would you be able to continue your education there without undue financial stress?

  2. If I work, can I develop a realistic plan and timeline for my success? You may want to take additional time to complete your program in order to have a realistic work schedule. Going to school full-time is similar to having a 40-hour-per-week job or more.

HOW DO I PAY FOR IT?

There are several ways to reduce the cost of your education. The more you can reduce the cost, the less you have to borrow.  The lower your loan payments the more money you will have available to you to save, share, invest and spend. 

  • In Colorado, the state supports higher education through a College Opportunity Fund. How much you can receive from this fund often depends on the cost of the education. We will address this under expenses because it is often posted on the website of the education provider.

  • If you are a non-US citizen or if you are not a permanent resident of the U.S. you can apply for aid through the State of Colorado provided you meet certain requirements. Not only may you be classified as an in-state student, but CAFSA may also open other funding opportunities such as grants and private scholarships. The aid does not come directly from the State of Colorado but from the institution, you will be attending.

  • Most associate degrees and some certificates and bachelor degrees are awarded at community colleges. They are more cost-effective than four-year universities. In some fields, a certificate or associate degree will satisfy the education requirements for the job. Some community colleges offer bachelor degrees in certain fields for lower tuition than universities. With proper planning, you can receive an associate degree and then transfer to a four-year university to complete a bachelor degree in two more years.

  • Loans or grants are given by the federal government to students with a social security number. Some government loans are subsidized, meaning that government pays the interest on your loan while you are in school. An unsubsidized student loan means interest accrues on your loan while you are in school. Loans have to be repaid. Government grants typically don’t have to be paid back, although they might have certain financial or academic requirements. Financial aid is usually given only to those who show a financial need for money. Financial aid requires a thorough application process called FAFSA that outlines the taxes, finances, and educational plan for a student and their family. Financial aid sometimes requires the student to participate in a work-study job on campus

MYTHS ABOUT FAFSA

  • Part of the feedback you will receive on your FAFSA application is an Expected Family Contribution (EFC). This does not mean your parents or relatives have to pay this amount. This amount is calculated by the software behind the FAFSA application, based on your inputs, to determine your “financial need”. The basic formula is Cost of Attendance (COA) - Expected Family Contribution (EFC) = Financial Need. The Financial Need is the maximum amount the federal government will loan you.

  • Fill out the FAFSA anyway. FAFSA takes into account several factors including the size of the household and the number of students in college at once. Education providers use the FAFSA as a guideline as to how much financial aid they can offer you. Also, some schools give out money on a first-come, first-served basis so complete your FAFSA early.

  • If you have a social security number but your parents do not, you can still apply for federal financial aid. The citizenship status of your parents is not a factor in the process.

OTHER WAYS OF PAYING

  • Gifts are also known as money you receive from parents, friends, and other family members to support you in your education and training.

  • Military service members can qualify for various types of college funding during and after their service. Although requirements and restrictions apply, military service members can have up to 100% of their education covered. Options include tuition assistance, GI bills, student loan repayment, and student loan forgiveness.

  • Money borrowed from a financial institution must be paid back with interest. This is usually the most expensive way to pay for college. While you are going to school and paying back the loan, more money is getting added to the amount you borrowed, called interest. After you finish paying the loan, you will have paid more than what the tuition cost to begin with. Usually, you need your parents or another adult to co-sign on the loan. If they co-sign, you and your parents will both be responsible for 100% of the payments no matter which of you is actually making the payments. Student loans can be an effective way to pay for college if you plan ahead and anticipate earning a certain amount of money after college. Student loans require an application that shows the finances of the borrowers.

    Private student loans and Parent PLUS loans are your last resort. This is because they have the highest interest rates. Often these loans fill the gap between the cost of the education/training and the other sources of income you have identified. But remember, just because you qualify for a loan does not mean you can really afford it. To afford a loan you need to consider your future income, the loan repayment amount, your desired standard of living, and other life choices that are important to you.

  • Money that is awarded by an organization or person that does not have to be paid back. Scholarships aren’t just awarded for good grades and sports. Scholarships can be awarded for being the first in your family to go to college, growing up in a certain region, volunteering, participating in a program, having a certain family income, being of a certain race or nationality, and much more. Scholarships typically require an application that may include essays or interviews. Some scholarships can be awarded as early as freshman year of high school, so start researching early.

  • Some employers will pay for their employees’ tuitions if they go to school while working for that company. Often, the employee must pay the tuition up front, then the employer will reimburse, or pay them back, after they show that they completed the class with a certain grade. The employer might also require that the employee continue working there for a certain amount of time after they complete their degree or program.

  • Many students pay their tuition by working while they are in school. Students then graduate with a degree and work experience. Some go to school full-time and work part-time or work full-time and go to school part-time. If going to school part-time, it will take longer to complete a program which is totally OK since you may come out debt free with work experience!

  • Many colleges offer work-study programs which allow students to work a job on campus in exchange for income or reduced tuition. Since the school is the employer, the hours are typically flexible to work around your school schedule. Most work-study positions require an application and job interview.