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- [Voiceover] We are[br]here with Karen Cooper,

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the Director of Financial Aid[br]here at Stanford University.

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Karen, thanks so much[br]for being with us today.

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- [Karen] Oh, you're very welcome.

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- [Voiceover] Karen, one[br]of the big things that

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students often struggle with[br]in the financial aid process

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is they receive offer letters[br]from several different schools

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and they come in several[br]different formats.

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They all look different.

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So, as a student, what should I be doing

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to make sense of this information,

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organize it for myself so I can actually

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compare them across each other.

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- [Karen] That's a really good question.

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So, I think the important thing to do is

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pull out the information

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that you're gonna compare from each one

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and you might have to[br]search around for it.

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But, what I would start with is

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the estimated cost of attendance.

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So, almost every school is going to have

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a full estimated cost of[br]attendance right there

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on their award letter for you.

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That includes these components[br]like tuition, room and board

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the things that we are[br]billing students for.

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As well as allowances for books,

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personal expenses, transportation.

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So I want you to think about[br]each one of those items

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and think about whether that's a realistic

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estimate of the cost at[br]that institution for you.

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- [Voiceover] Great, so when I receive

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a financial aid award[br]letter, they may give me

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the estimated cost of attendance,[br]will they always include

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all of these items in[br]their estimated cost?

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- [Karen] They may not break[br]down all of the details for you

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and some schools might include[br]just the direct cost, the

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tuition and housing expenses[br]that they're billing you for,

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so you might have to go look for what's a

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good book allowance at that institution.

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But if it's not directly[br]there on their award letter,

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it should be on the[br]school's website somewhere.

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- [Voiceover] Okay, so[br]the first thing I do

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is I really figure out[br]what is the full cost

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to attend this university,[br]tuition, room/board, books,

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transportation, other[br]cost, add that altogether,

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I've got my estimated cost.

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- [Karen] That's right.

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- [Voiceover] Where do I go from there?

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- [Karen] Well, I think[br]the next thing to look at

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is the free money.

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Where's the good money[br]that they're giving you,

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that they've offered to you?

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So, you're gonna wanna look[br]for any grants and scholarships

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and usually, those are[br]very clearly identified

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on an award letter.

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So the total amount of[br]scholarships from the school,

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if there are any federal[br]grants being offered

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or state grants or any outside[br]sources of scholarship funds.

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- [Voiceover] Great.

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And so once I have my[br]estimated cost of attendance

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and I have my grants and scholarships,

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what do I do next?

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- [Karen] The difference[br]between those two figures,

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I think is a really[br]important thing to look at

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as you're comparing from school to school

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because whatever that[br]cost of attendance is,

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less all of the scholarships[br]and grants you've been offered,

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that is the amount that's[br]gonna come out of your pocket

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one way or another.

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Net cost is another thing[br]that that's often labeled.

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Now, you may be offered[br]loans or work-study

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to help meet those net cost,

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but anything else that's not covered

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by grants and scholarships,

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you're gonna be responsible[br]for it one way or another.

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- [Voiceover] Okay, so after[br]we get that net cost number,

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before we talk about[br]my family contributing,

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which is one of probably[br]the toughest thing to do,

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what are some of the different options

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that the school will give me?

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- [Karen] I think the next[br]thing to think about is

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have you been offered[br]work-study eligibility?

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An opportunity to work[br]during the year on campus

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that allows you, as the student perhaps,

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to cover some of those personal expenses

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that are listed in the cost of attendance.

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- [Voiceover] And during work-study,

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I'm still a full time student.

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- [Karen] That's right.

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Typically, work-study[br]jobs, students are working

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seven to ten hours a week, so[br]a reasonable amount of work

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that allows you to stay[br]engaged with your studies.

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- [Voiceover] So, in[br]addition to work-study,

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I know that oftentimes on[br]financial aid packages,

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there's a Stafford Loan[br]or a Perkins Loan listed,

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what exactly are those loans?

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- [Karen] Those are loans[br]that the school is suggesting

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that you will need to[br]help cover that net cost.

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They've determined that amount based on

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the information that you've provided

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on your financial aid applications.

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So, it's the amount[br]that they're suggesting.

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It doesn't necessarily mean[br]that that's all that's available

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so you might, if you are thinking about

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maybe borrowing more or working less,

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those kinds of options that[br]you have available to you,

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you can talk to the financial[br]aid office about that.

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- [Voiceover] Great.

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So now that we understand work-study and

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the Stafford and Perkins[br]loans that might be out there,

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how do we actually get from net cost to

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what my family's actually[br]going to have to pay

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on a yearly basis?

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- [Karen] Right.

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So, your net cost is just[br]the overall picture of what

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you and your family are[br]gonna be responsible for,

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but you, the student,[br]may be able to pick up

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some of that net cost with[br]the work-study and loans.

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You'll wanna subtract those[br]amounts from the net cost

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and that remaining amount[br]is what you need to sit down

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with your parents and[br]have a conversation about

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how are we, as a family,[br]going to cover these costs?

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Generally, the school[br]is expecting that that

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remaining amount would be[br]picked up by your parents.