Estimated time: 10-20 minutes
Case Study
It’s May of his senior year and Samuel Smith is sorting through his mail. Recently, he received a couple of award letters, scholarships and financial aid. It is time for Samuel and his family to make the decision about which college to attend. Amongst all the schools that he applied to, two of them offered financial support.
School A offered a parent plan loan of $ 22,000, a Lacrosse Scholarship worth $ 5,000 and a work-study for Samuel for $1,000 per year. Yearly tuition at School A is $ 30,000 with book fees estimated at $1,000. Room and board are $15,000 per year
School B offered Samuel a $2,000 scholarship plus a $6,000 grant for his academic performance. They also offer a subsidized loan for up to $25,000. The cost for his four-year degree at school B is $120,000. Room and board are $48,000 for the four years in total.
School C also accepted Samuel’s application but offered no financial aid or scholarships. Tuition at this college is $10,000 per year. The school is close to home, so Samuel could stay at home while studying.