Can a more expensive college cost you less?

One college looks out of reach. Another has a lower published price. Before ruling one out, it helps to distinguish the price listed by the school from the cost after grants and scholarships.

Compare the same kind of number

In a fictional one-year comparison, College A has a total cost of attendance of $30,000 and offers $10,000 in grants and scholarships. That leaves $20,000. College B has a total cost of $42,000 and offers $25,000 in grants and scholarships. That leaves $17,000.

The more expensive school on the first line has the lower net price in this example. These are invented offers, not predictions of what any student will receive.

Not all aid reduces the price

Federal Student Aid explains that financial aid offers can include grants and scholarships, loans and work-study. Loans must be repaid, and work-study involves earning money through work. They should not be treated as the same kind of price reduction as grants and scholarships.¹

The comparison also needs a consistent view of expenses. Tuition alone leaves out costs such as housing, food, books and transportation. An offer may apply to one year, while attending could involve several years and changing conditions.

This does not make the decision purely financial. The program, your goals and the likelihood of completing it matter too. It does mean that “We cannot afford the sticker price” is a starting question rather than always the final answer.