Which financial aid offer works for your needs?
Max, a military veteran, and his wife Brianna both want to go to college to complete their bachelor’s degrees.
Max is able to pay for all of his college expenses at a university in his state using the Post 9/11 GI Bill.
Brianna has applied for financial aid and is comparing the amount of annual financial aid that two universities are offering. Max will also transfer a portion of his Post 9/11 GI Bill to Brianna to help offset the expense.
Two financial aid offers
|Costs and financial aid||University A||University B|
|Cost of attendance*||$10,000||$18,000|
|Civilian financial aid|
|Total financial aid||$7,900||$16,000|
|Military education benefit|
|Total financial aid and military benefits||$10,000||$18,000|
*Cost of Attendance (COA) = the total cost of full time education for one year
Notice the unsubsidized Stafford loans being offered. Let’s say Brianna takes the $2,000 loan each year for four years at a 6.8% fixed interest rate for 10 years. If she attends University A, she’ll need to pay $117 a month for 10 years after she graduates. At University B, if she takes the $3,800 loan, she’ll have to pay $223 a month for 10 years — almost double!
Note: The Department of Education coordinates federal financial aid, but the process requires other people and organizations: you; your family; the schools or programs you’ve applied to; U.S. and state governments; your bank.
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