A college offers your child a $30,000 scholarship. Another offers $15,000. The larger scholarship may still leave you with a higher bill, depending on what each school costs.
For each school, subtract grants and scholarships from the full annual cost. Keep loans and work-study separate so you can see the price your family needs to cover before deciding how to pay it. Federal Student Aid explains this net-price calculation.
You can do the first comparison with a spreadsheet or a sheet of paper. Give every school a column, then use the same rows for costs, gift aid, and the money still needed.
Start with a full year of expenses
Find each college's cost of attendance for your student's academic year and living arrangement. Include tuition and required fees, housing, meals, books, transportation, and personal expenses. Some costs appear on the college bill. Others come out of your family's checking account during the year. The Consumer Financial Protection Bureau's college-cost planning tool separates those expenses so you can account for both.
Check the details against how your child will live. A commuter's transportation budget will look different from the travel budget for a student flying home. If the housing estimate assumes a shared room, ask what happens if that room type is unavailable. Check whether health insurance is included and whether your existing coverage meets the college's waiver requirements.
Use the same time period in every column. An annual scholarship beside a single semester's tuition can make an unaffordable offer look surprisingly manageable.
Separate gift aid from money you must earn or repay
Grants and scholarships generally reduce the price your family pays. Loans provide money now that must be repaid under the loan's terms. An offer can include both, even when it displays one large total under the word “aid.” The CFPB describes the distinctions among college funding options.
Work-study needs its own line. Students earn those funds through a job and receive pay over time. An award doesn't guarantee a job or put the entire amount toward the first tuition bill. Ask how students apply for positions and when they can expect to start earning. Federal Student Aid's work-study guide explains how payment works.
For a first comparison, subtract only confirmed grants and scholarships. Keep an outside scholarship marked “pending” until the award is official, and ask the college how it would affect the rest of the package.
Hypothetical annual costs after grants and scholarships.
Borrowing is not subtracted from these net prices.
Compare two offers using the same math
These fictional figures illustrate the method. They are not actual college prices or client results.
| Annual amount | College A | College B |
|---|---|---|
| Full cost of attendance | $46,000 | $68,000 |
| Grants and scholarships | $16,000 | $42,000 |
| Net price before borrowing | $30,000 | $26,000 |
College B starts with the higher price, yet costs this family $4,000 less for the first year after gift aid.
If both schools list a $5,500 student loan, the net prices stay the same. The loan helps pay the bill and must be repaid. Loan fees can also reduce the amount credited to the student's account, so use the actual expected disbursement when estimating the bill.
If the family can contribute $18,000 from savings and income, College A leaves a $12,000 gap before borrowing. College B leaves $8,000. The next conversation is whether the family can cover that gap, who would borrow, and what repayment would require.
Read the renewal terms before multiplying by four
A first-year scholarship is only part of the decision. Merit awards may have renewal conditions, such as a required grade point average. Need-based awards depend on the financial aid process and the student's circumstances. MEFA's financial aid overview explains these different award types.
Ask the college:
- Is this award renewable, and for how many semesters?
- What grades, completed credits, or enrollment status are required?
- Is the amount fixed, or can it change when tuition increases?
- What forms must we submit each year?
- How would an outside scholarship affect this package?
Save the college's answers with the offer.
Build a separate estimate for each year. A fixed $20,000 scholarship will cover a smaller share of costs if tuition rises. A one-time freshman award disappears from later budgets. Ask about a fifth year as well, especially if the student's program or circumstances could extend the time to graduation.
Check every loan listed in the offer
Identify the borrower for each loan. A Parent PLUS loan belongs to the parent; a private student loan may involve a parent as a cosigner. Cosigning carries a legal obligation to repay, as the CFPB explains in its guidance for student-loan cosigners.
Parent PLUS borrowing changed in July 2026. Families outside the limited exception generally share a $20,000 annual limit and a $65,000 total limit per dependent student across all parents. A large Parent PLUS amount on an estimate should prompt a call to the aid office about actual eligibility. See Federal Student Aid's current updates.
Before accepting any financing, get the rate, fees, repayment term, and estimated monthly payment. Keep student debt and parent debt in separate totals so both people understand the commitment.
Ask for a review when the offer misses something
Contact the college if the financial information used for the offer no longer reflects your circumstances. A job loss or substantial medical expenses may warrant a review. Explain what changed and ask which documents the aid office needs. The school decides whether an adjustment is appropriate; an appeal does not guarantee more aid. Federal Student Aid describes the review process.
You can also ask whether the school considers competing offers when reviewing institutional aid. Find out its policy before building your budget around a possible increase. If an enrollment deadline is close, request an extension and obtain an answer in writing.
For help reviewing your family's offers, see our financial aid award review service for Massachusetts families. Bring the complete offers, each school's cost breakdown, and any scholarship renewal terms to your appointment.
Sources checked October 14, 2026. Rules and school policies can change. Confirm requirements with the relevant financial aid office.
