Paying for college can feel overwhelming, especially with so many terms and numbers thrown at you. Tuition, fees, financial aid – what does it all mean?
We’ve put together answers to some of the most common questions about college costs. Plus, we’ll show you how Student Loan Insurance can help you plan for the unexpected and protect your future.

1. There’s so much terminology. What does it all mean?

Here are definitions of common terms used to talk about paying for college.

• Tuition: This is the cost of taking classes and is often the largest expense. It varies widely depending on the school.
• Fees: These cover other costs, like technology, labs, and campus resources. Fees can add up quickly, so make sure to check what’s included at your school.
• Scholarships: Financial awards that do not need to be repaid. They are often merit-based (e.g., academic, athletic) or need-based and provided by schools, organizations, or companies.
• Grants: Financial aid that does not require repayment, usually based on financial need. A common example is the federal Pell Grant.
• FAFSA: The Free Application for Federal Student Aid (FAFSA) is a form used by students and their families to apply for financial aid for college, including federal grants, loans, and work-study programs.
• Expected Family Contribution (EFC): A number calculated from your FAFSA that determines how much your family is expected to contribute toward college costs. It helps colleges allocate financial aid.
• Student Loans: There are 3 common types of loans used to pay for college. Learn more in this guide student loan guide.

2. What is the Total Cost of Attendance (COA)?

The COA is the real price tag of going to college. It includes:

• Tuition and fees
• Housing (room and board)
• Books and supplies
• Transportation
• Personal expenses (like laundry and meals off-campus)

When comparing colleges, always look at the COA – not just the tuition – so you know what you’re truly paying.

3. How do I calculate the cost of college?

• Start with the Cost of Attendance (COA): Every college publishes a COA online, which is an estimate of all expenses for one academic year. It typically includes tuition, housing, and meal plans.
• Don’t Forget Related Expenses: Don’t forget costs like travel, personal expenses, off-campus housing, or study abroad programs that aren’t always listed in the COA.
• Plan for Contingencies: Account for unexpected costs such as health emergencies, technology needs (e.g., replacing a laptop), or other surprises. It’s wise to budget a small cushion for these situations.
• Subtract Scholarships, Grants and Other Contributions: Deduct any free money you’re awarded, such as scholarships, grants, or work-study earnings. (Your college will detail any free money awarded to you by the college or the government in your financial aid award letter.) If you or your family can contribute anything toward your education, subtract that as well.
• Factor in Loans: Identify how much you’ll need to borrow through federal or private loans to cover remaining costs.
• Estimate Multi-Year Costs: Multiply your first-year expense by the number of years it will take to complete your degree. Factor in potential tuition increases (many schools increase tuition by 2% to 5% annually) and changes in your personal expenses over time.

By thoroughly assessing these factors, you’ll get a realistic picture of your total college expenses.

4. What’s the deal with financial aid?

Financial aid is money that helps you pay for college, and it comes in three main types:

• Grants and Scholarships: Free money you don’t have to pay back (the best kind!).
• Work-Study: A chance to earn money through part-time campus jobs.
• Loans: Borrowed money that you’ll need to repay, often with interest.

When you receive a financial aid offer, subtract grants, scholarships, and work-study from the COA to find out what you’ll actually need to pay or borrow.

5. How does Student Loan Insurance help with college costs?

Even with financial aid, many students need to take out loans. But what happens if you graduate and your first job doesn’t pay as much as you hoped? That’s where Student Loan Insurance steps in.
Here’s how it works:

• If your income after graduation is less than $50,000*, Student Loan Insurance helps repay your student loans.
• It covers federal, private, and parent PLUS loans, so all your bases are protected.
• The less you earn, the more support you receive – giving you financial breathing room.

*Income amount varies. Check your price for details.

Why it’s a smart choice:

• Peace of mind: Focus on your studies and career without stressing about loan repayments.
• Flexibility: Choose the career path you love, even if it has a modest starting salary.

6. How can I plan for college costs?

• Start Early: Apply for FAFSA and research scholarships as soon as possible.
• Compare Offers: Look at the net cost (COA minus free money) for each school.
• Borrow Wisely: Only take out what you need and consider how much you’ll owe after graduation.

Take Control of College Costs

College is a big investment, but with the right plan, you can manage costs and protect your future. Whether you’re still deciding on schools or getting ready to graduate, tools like Student Loan Insurance can help you navigate financial uncertainty with confidence.

Have questions Student Loan Insurance? Learn More Here

Your education is worth it, and with a little planning and protection, you can make sure it pays off.