This document provides information from a presentation by Kenneth T. Cole, the Director of Financial Aid at USC Lancaster, on calculating college costs and financial aid. It includes tables showing estimated costs for 2-year and 4-year public and private colleges in South Carolina. It also discusses calculating costs of attendance, expected family contribution, financial need, award packages, and strategies for determining borrowing amounts. The presentation aims to help students and families understand and compare college costs and financial aid.

1. PRESENTER
USC
LANCASTER
USC Lancaster
Kenneth T. Cole
Director of Financial Aid

2. 
Education as an Investment

Calculating College Costs

Reading an Award Letter

Comparing Colleges by Costs and Awards

Determining How Much You Should Borrow

4. Tuition
& Fees
Room
&
Board
Books & Total
Supplies Annual
Cost
4 Year Cost
(assuming 7%
increase/year)
USC Lancaster
(2 year Public)
$6,252
$6,840
$1600
$14,692
$71,000
York Tech.
(2 year Tech)
$3,496
$7,200
$1,200
$11,896
NA
USC Columbia
(4 year Public)
$10,168
$6,556
$1600
$18,324
$81,000
Clemson Univ.
(4 year Public)
$12,668
$7,228
$1090
$20,986
$93,000
Coker College
(4 year Private)
$22,200
$6,950
$1,000
$30,150
$130,000

5. 
Median Annual Salary for workers with
◦
◦
◦
◦

No HS Diploma $13,000
High School Diploma $21,079
Associate’s Degree
$30,937
Bachelor’s Degree
$40,166
About $20,000 a year for a Bachelor’s Degree
Source:
U.S. Census Bureau's annual survey comparing earnings with education
levels. Based on 2005 year data.
“Study Shows Higher Salaries for College Grads”, by Howard Schneider;
Washington Post Staff Writer
Thursday, March 15, 2007; 10:00 AM

6. 
What is the cost of education?
◦ 2 year degree
$29,384
◦ 4 year degree
$81,000
◦ Not considering what Financial Aid might pay

What you could earn in 30
◦ Without a School Diploma
◦ With a 2 year Degree
◦ With a 4 year Degree

years?
$632,370
$928,110
$1,204,498
What the degree is worth?
◦ 2 year degree $266,356
◦ 4 year degree $491,128

College is an Investment that has a 600% return

7. Is 4 years of hard work worth
$500,000
to you?

8. 
Notification:
◦ Paper Award Letter
◦ E-mail notification (with secure link)
Most award information is now online
 You should:

◦ Read Awards Terms and Conditions
◦ Accept loans if you want them
◦ Complete additional forms:
 State Grant Affidavits
 Student Loan Promissory Notes and Entrance Counseling
 Work Study Job Applications and Interviews

9. 
4 parts
◦
◦
◦
◦
Estimated Cost of Attendance (COA or Budget)
Expected Family Contribution (EFC from FAFSA)
Calculated Need
Awards








Award name
1st Term award Amount
2nd Term award Amount
Total Award Amount
Enrollment Status used for award (usually full-time)
Total Term Awards
Total Yearly Awards
Summer is usually not included in initial award.

10. Need Calculation
Cost of
Attendance
Tuition & Fees
$17720
Estimated Cost of Attendance
$17720
Expected Family Contribution
$ 1000
Need
$16720
Books & Supplies
$1320
Total Awards*
$14100
Room & Board
$7100
Unmet Need
$ 2620
Transportation
$1800
PELL
Fall
Fall
Spring
Amount Enrollment Amount
Status
$2300
12 (full)
$2300
Spring
Total
Enrollment Award
Status
12 (full)
$4600
Decision
(Accept/
Decline)
na
LIFE
$2500
12 (full)
$2500
12 (full)
$5000
na
Sub
Loan
Unsub
Loan*
$1750
12 (full)
$1750
12 (full)
$3500
$1000
12 (full)
$1000
12 (full)
$2000
Award
$6500
* Unsub loans can be used to “offset” the EFC. So, in this
case only $1000 of the Unsub loan was counted against Need.

11. 

Give you an example of an “average” student’s costs and awards who
is similar to you.
It will ask:
◦
◦
◦
◦
◦
◦
◦
◦
◦

If you are filing a FAFSA
Your age
Your living arrangements
Your state residency status
Your marital status
If you support any children
Number of people in your Household
Of those, the number attending college
Family Income Range
It will give you:
◦ Estimated Cost of Attendance (COA)
◦ Estimated Total Grants
◦ Estimated Net Price (COA-Estimated Grants)

It does NOT tell you:
◦ What YOU are really eligible for
◦ What YOU will really pay

12. 
You must determine seven things:
◦
◦
◦
◦
◦
◦
◦
◦
Actual Expenses
Living/Transportation Expenses
Cost of Attendance (COA or budget)
Family Contribution (EFC)
Need
Total Aid Offered
Unmet Cost (budget less scholarships and grants)
Loans
Remember: Tuition, Fees, Books and Dorms are usually only
charged 1 semester at a time. You may need to calculate

13. 
Actual Expenses include:
◦
◦
◦
◦
Tuition
Fees
Books
Supplies
Tuition Offset:
◦A scholarship/grant provided from institutional funds towards the cost
of Tuition and Fees.
◦Large expensive colleges often offer an “offset” based on your
academics and/or need.
◦These are usually Institutional awards that reduce the costs before
other aid applies.
◦Tuition Offsets reduce Actual Expenses

14. 
Living/Transportation Expenses:
◦
◦
◦
◦
◦
◦
◦
Room (dorm; apartment, deposits, utilities)
Board (meal plan, eating out, cooking, snacks)
Personal (laundry, toiletries, clothing, furniture)
Emergencies (car repairs, medical issues, clothing)
Daily Travel (bus fare; bike; insurance, gas, parking)
Vacation Travel (car, flights, gas, food)
Cost of Attendance (budget):
◦ Actual Expenses + Living/Transportation Expenses
◦
Need:
◦ Cost of Attendance - Family Contribution = Need
◦ Need limits grants, work-study and subsidized loans

15. 
Total Aid Offered
 Scholarships (except Tuition Offsets)
 Grants (except Tuition Offsets)
 Loans (you have a choice to accept or decline these)
 Workstudy (student must work to earn this money)

Cost of Attendance – Scholarships & Grants= Unmet Cost

Unmet Cost is your actual “out of pocket expense”

Options:
◦ Student Loans
 to pay one time fees, or keep in savings for monthly bills
◦ Working a Job
 to cover monthly bills and save for up coming big bills
 Family Support
 College savings plans, car insurance, gas money, food, etc…

16. 
Total Resources=
 Federal Pell Grant
 State Scholarships
 Scholarships from Sponsors (those not from colleges)
 Federal Loans ($5500 as Freshman)
 Savings Plans
 Cash and other assets

For Each College, determine:
 Cost of Attendance – Total Resources = Unmet Cost of College
 Subtract Institutional Grants and Scholarships = Actual Cost

Use that to compare and determine which college you can
afford.

17. Will you need to borrow a student loan?
Example of a fairly inexpensive school
Tuition + Fees + Books + Supplies
$6000 + $500 + $1200 + $120
Scholarships
Only
Need Grants
Only
Actual Costs
Need Grants
and
Scholarships
$7,820
$7,820
$7,820
LIFE
-
$5,000
$5,000
$0
Pell
-
$5,550
$0
$5,550
Lottery
-
$0
$0
$950
Unmet Costs
$0
$2,820
$1,320

18. 
Calculate your anticipate Loans
◦ Determine how much you must borrow each year
◦ Add 20% to the total
 12% for cost increases
 8% for accrued loan interest
◦ This is how much you will have borrowed at this college.
◦ The undergraduate loan limit is $31,000
◦ You can also borrow private student loans, but it is
discouraged.

19. 
Your debt-to-income ratio can be a valuable number -some say as important as your credit score. It's exactly what
it sounds: the amount of debt you have as compared to your
overall income.

Lenders look at this ratio when they are trying to decide
whether to lend you money or extend credit.

Monthly Debt payments/ Monthly income=DTI

You want to keep your “DTI” below 36%

20. If you borrowed $31,000 in student loans,
 your monthly payments would be $400; and
 if you paid a typical house payment of $1000 and
a typical car loan of $400 monthly; and
 if you wanted to maintain a DTI of no more than
36% (to keep good credit); then,
 you would need a monthly income of about $5000,
or about a $60,000 annual income.
 Your student loan would therefore be about 51%
of your annual income.

Hence, we recommend...


21. Don’t borrow
More in student loans than
half
of your anticipated
annual income for your career!

22. 
Research your career field:
Career
◦
◦
◦
◦
◦
◦
◦
◦
◦
◦
Starting Income
Rec. Limit
Attorney:
$100,000
$50,000
Software Developer: $92,000
$46,000
Finance Manager:
$85,000
$42,500
Construction: $70,000
$35,000
Mechanical Engineer: $65,000
$32,500
Operations Manager: $60,000
$30,000
Human Resources Manager:$60,000 $30,000
Bank Manager: $55,000
$27,500
Executive Assistant: $47,000
$23,500
Accounts Payable Specialist:$37,000 $18,500

23. Thank you for your
attention!
Contact Us!
USC Lancaster
Kenneth Cole
 BY MAIL:
PO Box 889
Lancaster, SC 29721
 BY PHONE: (803) 313-7068
 Visit Us: 127 Starr Hall, Hubbard Drive
 BY WEB: http://usclancaster.sc.edu/
A presentation like this is available at the USC Lancaster Financial Aid Office
Website