KNOW WHEN YOU NEED TO PAY EACH COST SO YOU CAN BUDGET EFFECTIVELY WHILE YOU’RE IN SCHOOL
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Note when and how you need to pay the costs listed on your COA. Certain costs are billed by the school as a lump sum at the beginning of each academic period (semester, quarter, etc.), and you must pay the school at that time. These costs include tuition, fees, and room and board (if you live on campus). Books, transportation, childcare, and other expenses are different. These costs come up throughout the year, and you must pay them as you go. UNDERSTAND HOW EXPECTED FAMILY CONTRIBUTION (EFC) WORKS The Expected Family Contribution (EFC) is a number each school uses to calculate how much financial aid they would offer you. The EFC is based on the information you report on your FAFSA form, and you can find it on the first page of your Student Aid Report. While schools take your EFC into account in determining your financial aid offer, they may not state it in their letter to you. If you want to get an idea of your EFC, you can develop an estimate on the Federal Student Aid Estimator . Many schools offer a similar tool, which they call the “EFC Calculator.” NOTE THE FUNDING THAT YOU DON’T HAVE TO PAY BACK Now your top priority is to review each offer for the financial aid you don’t have to pay back, such as scholarships, grants, and work-study (more on work-study below). Grants and scholarships can be need-based (based on your financial need) or merit-based (based on your grade-point average). Know their requirements to maintain eligibility. Ask if these same funds will be available to you every year. If you’re receiving a $5,000 grant your first year that you won’t receive the following year, that’s a future financial responsibility to consider now. 6 7
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