The following case studies is presented to provide a sample scenario of how financial aid and financing options work together. These are not necessarily typical, and each family’s situation is unique.
Alicia is ready for college and would like to live on campus. She has earned a 3.4 high school GPA and a 24 ACT composite score. She has several brothers and sisters. Her father died several years ago, and her mother has to support the family with her earnings and the social security benefits the family receives. Alicia has a minimum wage part-time job that helps her cover her own incidental expenses.
|
EXPENSE
|
PER SEMESTER
|
PER YEAR
|
|
Tuition & Fees
|
$10,600
|
$21,200
|
|
Room & Board
|
$3,200
|
$6,400
|
|
Laptop Purchase
|
$1,300
|
$1,300
|
|
Books & Miscellaneous Expenses
|
$900
|
$1,800
|
|
Total Resident Student Budget
|
$16,100
|
$30,700
|
| Estimated Family Contribution |
$0 |
$0
|
| Financial Need |
$16,100 |
$30,700
|
Based on her academic record and her financial need, Alicia received the following aid package:
|
AWARD
|
PER SEMESTER
|
PER YEAR
|
|
Trustee Scholarship & Mount Grant
|
$5,250
|
$10,500
|
|
Federal & State Grants
|
$5,356
|
$10,712
|
|
Federal Student Loans
|
$2,250
|
$4,500
|
|
College Work Study
|
$750
|
$1,500
|
|
Total
|
$13,606
|
$27,212
|
Alicia has $27,212 to use toward her freshman year costs. Everything except her work study earnings – $25,712 – will be applied directly to her account, half of it at the start of each semester. Her direct costs for the year total $28,900 (everything except her books and miscellaneous expenses).
For the fall semester she needs $3188 to cover the portion of her direct costs not covered by her aid plus approximately $400 for books. Her work study earnings can cover her miscellaneous expenses and perhaps books and supplies for second semester. She needs approximately $3588 out of pocket to cover her first year of college.
Our Suggestions
We would highly recommend applying for outside scholarships, especially any being offered through her high school. If she lives in the Greater Cincinnati area, the Cincinnati Scholarship Foundation should be first on her list.
Depending on her mother’s ability to borrow, a Federal PLUS Loan might work. If it is approved, and Alicia’s mother is willing to take out the loan, she can borrow the $3588 Alicia needs. If it is denied, Alicia can borrow an additional $4000 in unsubsidized Stafford Loan funds. This would be her best solution if she has to borrow.
If this doesn’t work, Alicia may be able to borrow the funds she needs through an alternative loan program.
Of course, anything Alicia can earn and save prior to the start of school and put towards her remaining balance will reduce her need to borrow additional funds. By talking to her employer, she may be able to increase her hours during the summer and if she saves the money she receives from graduation, she can further reduce the amount she needs.
For more case studies, view the Case Studies Fact Sheet (PDF 252KB).