10 Steps to Applying for Financial Aid in RI

1. Add up direct costs.

Direct costs include tuition & fees, room &

board and other items that will be listed on

your tuition bill.

Books & supplies, travel costs, and living

expenses, although they will be included in

the school’s total “Cost of Attendance” are

indirect costs and should not be added to

your direct costs here.

2. Add up your gift aid.

Add up the total amount of grants and scholarships

you received from each school. This is “gift aid” that

doesn’t need to be repaid. Make sure to note

whether or not the reward will be renewable for

future years.

3. Subtract your gift aid from your direct costs.

The figure you are left

with will be the amount

you need to pay

directly to the college

when your tuition bill

arrives, via loans,

payment plans, work

study, etc. Use this

figure to compare the

total direct costs of

each college.

Remember, the amount of an “award” at one

college may be larger than another, but what

really matters in the end is how much you will

need to pay – through your savings, assets,

loans and work-study (earnings).

4. Add up your indirect costs.

Add up the costs of travel, living

expenses, books & supplies and other

indirect costs at each school.

Did the school provide any

aid that will help you offset

the indirect costs, such as

work-study?

Keep in mind, even if the

student received work study

funds, they need to put in the

time to earn those funds and

the funds will be paid to the

student as they are earned.

If the student didn’t receive

work study funds, he or she

may still be able to find a

part-time job on or off

campus to help cover indirect

expenses.

5. Determine your resources.

What resources does your family have to pay

for college? Consider savings and other

assets you will use towards your tuition costs.

Do you have the resources to cover

indirect costs as well?

5. What are your borrowing needs?

What student loans did the

school include in your aid

package?

For starters, there should be

Federal Direct Subsidized and/or

Unsubsidized Student Loans in your

award letter if you completed the

FAFSA. There may also be Federal

Perkins Loans, depending on what

funds the school has available and

your eligibility.

The school may have awarded

another loan directly available

through the school. Be sure to

understand rates and terms before

taking this on.

Were parent loans included in your aid package?

Some schools include the Federal PLUS Loan in award packages and

others don’t. If it is in your award, you don’t have to borrow it if you

think you can find a better loan for you and your family. If it isn’t in your

award, you can still apply for it to help you cover college costs if you

think it is the right option for you.

Now that you understand how much you will need to pay directly to the

school, know your indirect costs, and have assessed your resources, it’s

time to determine what you and the student will each need to borrow to

cover costs (direct and indirect) at each of the schools on the list. Using

the calculator at http://www.risla.com/paying-for-college-calculator can

help you with this task. Comparing your borrowing needs at each school

is a great way of comparing financial aid awards.

7. Estimate the student’s salary after graduation.

You may find that your child

wants to go to one school

much more than another,

even if it means stretching the

family budget and borrowing a

lot more.

Before deciding what to do,

estimate the student’s salary

after graduation based on

their career choice and

determine what their ability to

repay the loans is at

http://www.risla.com/how-

much-can-i-afford-to-borrow-

for-college. Have a heart-to-

heart with your student based

on what you find.