How do I estimate the full cost of college?
What is Cost of Attendance (COA)?
How much of what I earn should be put toward college?
How much should I have saved?
What if I don’t have enough money saved to pay for school?
What is the FAFSA?
Where do I get a FAFSA?
You can fill out the FAFSA online at fafsa.gov. If you need a printed FAFSA form, you can download a FAFSA PDF or order a print-out of the FAFSA PDF. Additionally, you can ask the financial aid office at your college or university if you can file it there.
What type of information do I need to complete the FAFSA?
You will need a number of documents, including the following:
What is a SAR and how do I get one?
What is EFC?
Are there factors that will lower a student's EFC?
Some of these factors include:
What is an award letter?
All the schools you applied to will send you a financial aid award notification sometime between December and March. Make sure to respond to your award notification ASAP so you don’t miss any aid deadlines. This notification may include information such as the following:
What is a grant and how do I get one?
Federal grants are a type of aid that is awarded by the federal government. Grants for college students do not have to be repaid. Grants are based upon financial need, as calculated by the federal aid program. The first step is to complete the FAFSA. A school grant is awarded directly from your chosen school. To learn more about your school's grants, visit their Web site or financial aid office.
What is a Direct Loan and how do I get one?
A Direct Loan is a low-cost student loan offered to eligible students enrolled in American institutions of higher education and is sponsored by the federal government. See the "Direct Loans" section for more details.
What is a PLUS Loan and how do I get one?
A Federal PLUS Loan (Parent Loan for Undergraduate Students) is designed specifically to help parents fill the gap between their child's current financial aid and the rising cost of tuition. PLUS loans are sponsored by the federal government. See the "PLUS Loans" section for more details.
What is a Private Loan and how do I get one?
Tuition and fees are rising every year, but federal loan limits are not. To help you manage the remaining cost of your education, lenders have worked with your school to offer an option for financing: private loans, also known as school-certified private loans or alternative student loans. The money borrowed through a private student loan, which is subject to credit approval by the lender, can be used for tuition, room and board, books and supplies, a computer, studying abroad and more. See the "Private Loans" section for more details.
How do Direct Loan interest rates work?
Rates for each school year are capped on July 1 by the government. Your rate depends on the type of Direct Loan and when your loan funds are disbursed. View Direct loan interest rates.
What's the difference between subsidized and unsubsidized?
A subsidized Direct Loan is a need-based loan; the government pays the interest on these loans when you're in school so that you're not incurring interest. An unsubsidized Direct Loan is not need-based; if you choose not to pay interest until after you graduate, your interest builds up while you're in school and will be capitalized (added to principal).
Why will I need additional loans if I have a Direct loan?
The maximum loan amount you can get with a Direct loan your first year is $5,500. If your school determines your need to be higher than the limits on a Direct Loan, they might offer an additional type of loan, like a PLUS Loan.
How much can I borrow with a PLUS Loan?
With a PLUS loan, parents may borrow up to the full cost of their child's education minus other aid received. For example, assume your tuition bill for a year at your chosen school is $15,500 and you were awarded $5,500 for a Direct Loan your first year.
|COA||$15,500||In this example, if your parents applied for a PLUS|
|- Other Aid||- 5,500||loan, they might be approved for up to $10,000.|
How do I know if the interest is tax-deductible?
Your parents should consult their tax advisor.
What is a private loan?
Tuition and fees are rising every year, but the federal loan limits are not. To help you manage the remaining cost of college, lenders work with your school to offer an option for financing - private loans, also known as private student loans, school-certified private loans or alternative student loans. Private loans are subject to credit approval and must be repaid based on the terms and conditions of the loan note you sign when you take out the loan.
How are rates determined?
Rates are determined based on creditworthiness of the borrower and the cosigner, if any. Requirements vary by lender. Creditworthiness is often defined as meeting the following financial and credit standards:
• Two years of employment history
• Proof of current income (if self-employed, applicant must have been in business for two years)
• Two years of U.S. residency
• Two years of satisfactory credit history
Should I apply with a cosigner?
What are automated payments and how does this affect my rate?
Automated payments are loan payments that are automatically deducted from your checking or savings account. It's easy to set up with your lender or loan servicer. You can usually pick which day of the month you want the funds taken out. What's great about automated payments is you don't have to worry about sending a check each month. Most lenders offer an incentive for borrowers who participate in automated payment programs. The PNC Solution Loan® offers a 0.50% interest rate discount for automated payments, which can result in savings over the life of the loan.
What is deferment?
A student loan deferment allows you to temporarily postpone your monthly payments under certain circumstances, such as the following:
Please note interest may continue to accrue during periods of deferment. Certain restrictions and conditions may apply. Contain your lender or servicer to discuss deferment options.
What is an extended repayment plan?
If you have more than $30,000 in outstanding federal Direct and/or PLUS loans with one or more lenders, and all of your loans were established after Oct. 7, 1998, you may be eligible for an extended repayment plan. With an extended repayment plan, you may:
Anytime you extend your repayment term, you will increase the overall interest amount you pay over the life of the loan. You may apply for an extended repayment plan during your grace periods, once your loans have entered repayment, or during periods of deferment or forbearance. Just contact your lender or loan servicer and request the extended repayment plan available for federal Direct and/or PLUS loans (private loans are not eligible). Make sure to contact all of your lenders if you have loans with more multiple lenders.
Should I keep my car on campus?
Colleges have different rules for keeping cars on campus. Many schools do not allow freshmen to keep cars on campus, but if they do, you might have to park it far away and will usually be charged a parking fee for each semester. To find out if your school allows cars on campus and the parking rates, look on their Web site. And when you're thinking about the bottom line, make sure to think about gas, insurance, maintenance and parking fees. Other students from your area might be heading home for the same breaks - so you might be able to catch a ride with a friend.
Do I need to take a computer to school?
It's almost impossible to get through college without a computer. While most colleges provide computer labs on campus, some colleges give a laptop to each incoming student, and others may offer discounts on new computers. Ask your school if they offer a wi-fi wireless network for their students. Free software may also available through your school.
Are there dorm-friendly recipes that can stretch my food budget?
If you're staying in the dorms, find out if there's a kitchen on your floor and don't be afraid to use it. Or it might be a good idea for you or your roommate to bring a microwave to school. Think beyond mac & cheese and ramen noodles!
How could a "warehouse club" save me money?
Warehouse clubs such as Sam's Club and Costco sell a wide variety of merchandise in which customers pay annual membership fees in order to shop. Clubs are able to keep prices low due to their no-frills format. Customers are required to buy large, wholesale quantities of the store's products, which make these clubs attractive to bargain hunters. Make sure you know how much the membership fees are before you join. If you get a group of students to go in with you, you can split up the large quantity items and defray the cost of the membership.
How can putting school off for a year help me?
It's a tough decision to make, but a year off does give you more time to prepare financially for school. If you work a full-time job during that year and put most of your paychecks in savings, you could have a significant chunk of cash to put toward your total cost of degree (TCD). You can also search for more scholarships, too. The pros and cons of delaying entry into school should be considered when thinking about this option.
How can I determine what I will make in the future?
Your future salary depends on your career and where you live. Check out the Salary Wizard on Salary.com to find average U.S. salaries for your chosen career.
You are encouraged to explore all scholarship, grant and federal borrowing options before applying for a private loan. Private loans are subject to credit approval. Certain restrictions and conditions apply.
PNC does not provide accounting, tax or legal advice. Financial literacy content and interactive calculators are provided for educational, informational and illustrative purposes only. The utilization of calculators and any results displayed do not represent an offer or solicitation for a product or service by PNC Bank or its affiliates. PNC does not guarantee the accuracy or applicability of these resources to your circumstances. Please consult a financial, tax or legal advisor regarding your specific situation.
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