Compare college financial aid offers using net cost, not sticker price

The short answer

Start with the full cost of attendance, not just tuition: tuition and fees, housing and food, books, transportation, personal costs and any student health plan.
Subtract only gift aid, meaning grants and scholarships you do not repay. What is left is the net cost: what your family must pay, earn or borrow.
Never add loans or work-study to gift aid. Loans are debt, work-study is a paycheck you earn during the year, and a Parent PLUS loan is the parent's debt.
Ask how each grant and scholarship renews, and whether costs rise each year. First-year-only money can raise later years' cost by thousands of dollars.
If your family's situation has changed, ask the financial aid office for a review before you decide.

Use the printable financial aid offer comparison worksheet to line up to four offers. Figures below are as of October 26, 2026; loan rules and state aid change, so check each source.

What an offer letter should show you

A college's cost of attendance (often shortened to COA) is its estimate of what a year of school costs, not just what it bills. Under federal rules, it can include:

Cost	What it covers	Billed by the college?
Tuition and fees	Classes, campus fees and, at some schools, a health insurance charge billed to all students	Yes
Housing and food	A dorm and meal plan, or an allowance for rent and food off campus or at home	Yes if you live on campus
Books, course materials, supplies and equipment	Including a reasonable allowance for a computer	Usually no
Transportation	Getting to campus, and trips home	No
Personal expenses	Everyday personal costs, for students enrolled at least half time	No
Other allowable costs	Dependent care, disability-related costs, study abroad, federal loan fees, and the cost of a first professional license or certificate	Varies

Some offers list only billed costs, which makes a college look cheaper. Make sure every offer has the same cost lines. If one leaves something out, use the college's published cost of attendance or ask the aid office.

Three kinds of aid, and why they never add together

Type	Examples	Do you repay it?	How to treat it
Gift aid	Federal and state grants, college grants, scholarships	No	Subtract from the cost of attendance
Loans	Federal Direct Subsidized and Unsubsidized Loans, private loans	Yes, with interest	A way to pay the net cost, not a discount
Work-study	Federal Work-Study	It is wages	Money you may earn during the year
Parent PLUS loan	Federal loan to a parent	Yes, by the parent	A way to pay the net cost, not aid to the student

Some offers add all of these into one "total aid" figure, which can look generous while most of it is debt.

Work-study is not money off the bill. Students are paid for hours actually worked, at least monthly, and the pay goes to the student unless the student agrees in writing to have it credited to the school account. The offer shows the most you may earn.

A Parent PLUS loan is the parent's debt. The parent is the borrower, it requires a credit check, and it cannot be transferred to the student later.

Net cost: the one number to compare

Net cost = cost of attendance − gift aid

This is what your family must cover for the year from savings, income, the student's job or loans. Compare colleges by this number first, then decide how you would pay it.

The U.S. Department of Education offers colleges a standard format, the College Financing Plan, to help students compare costs and aid. A 2026–27 version exists, but colleges are not required to use it. If an offer is hard to read, ask for a College Financing Plan or a written list of every cost and aid item.

Example (fictional): four offers, side by side

Example (fictional): Lena plans to study business and has offers from four colleges. Figures are for one year. She would live at home for College 3, which has no student health plan charge.

Line	College 1	College 2	College 3	College 4
Tuition and fees	$14,200	$62,000	$8,000	$48,000
Housing and food	$18,900	$19,500	$7,500	$17,000
Books and supplies	$1,300	$1,200	$1,300	$1,200
Transportation	$1,200	$1,500	$2,600	$900
Personal	$2,100	$1,800	$2,200	$2,000
Student health plan	$2,900	$3,400	$0	$2,600
Cost of attendance	$40,600	$89,400	$21,600	$71,700
Grants and scholarships (gift aid)	$21,000	$58,000	$7,500	$35,000
Net cost (cost minus gift aid)	$19,600	$31,400	$14,100	$36,700
Federal Direct Loans offered	$5,500	$5,500	$5,500	$5,500
Work-study offered	$2,500	$3,000	$0	$2,500
Parent PLUS loan listed	$8,000	$20,000	$0	$7,500

What Lena learns:

The biggest gift is not the lowest cost. College 2 gives the most gift aid, $58,000, yet its net cost is $11,800 a year higher than College 1's. College 3 gives the least gift aid and costs the least.
"Total aid" can hide the real cost. College 4's letter adds gift aid, loans, work-study and the Parent PLUS loan into "total aid" of $50,500, subtracts it from billed costs, and shows a balance of $17,100. Her real net cost there is $36,700, more than twice as much.
Renewal matters. College 4's $5,000 scholarship is for the first year only, so with the same costs its net cost would be $41,700 in year two. College 2's $6,000 scholarship needs a 3.0 GPA to renew; without it, net cost rises to $37,400.
The health plan matters. If Lena stays on a parent's plan and a college lets her waive its student plan, net cost drops by that charge: to $16,700 at College 1, $28,000 at College 2 and $34,100 at College 4.

Federal student loans for 2026–27

Interest rates. On June 4, 2026, the U.S. Department of Education announced these fixed rates for federal Direct Loans first disbursed from July 1, 2026, through June 30, 2027. Each loan keeps its rate for life.

Loan	Fixed interest rate
Direct Subsidized and Unsubsidized Loans for undergraduates	6.52%
Direct Unsubsidized Loans for graduate and professional students	8.07%
Direct PLUS Loans for parents and for graduate or professional students	9.07%

Federal loans also carry an upfront loan fee. For loans first disbursed from October 1, 2020, through September 30, 2027, it is 1.057% for Direct Subsidized and Unsubsidized Loans and 4.228% for Direct PLUS Loans.

Undergraduate limits. The federal handbook lists annual limits for dependent undergraduates of $5,500 in the first year, $6,500 in the second and $7,500 after that, with a $31,000 total. The July 2025 federal law set new caps for parent, graduate and professional loans and left these undergraduate amounts unchanged, according to the Congressional Research Service. Part-time students can borrow less (see below).

Changes that took effect July 1, 2026. Federal Student Aid calls some details preliminary while rules are finalized.

Parent PLUS loans: capped by the law at $20,000 a year and $65,000 in total for each dependent student, counting all parents together. Federal guidance confirms the $65,000 cap is per student, not per parent.
Graduate PLUS loans ended for graduate and professional students without an exception. The law sets new caps of $20,500 a year and $100,000 total for graduate students, and $50,000 a year and $200,000 total for professional students. A graduate health program that costs more than these caps leaves a gap federal loans cannot fill.
Lifetime cap: $257,500 for the loans a student borrows for undergraduate, graduate and professional study combined, counting amounts already repaid or forgiven.
Part-time students get annual limits reduced in proportion to their enrollment, starting in 2026–27. Colleges may also set lower limits for a program, applied equally to every student in it.
Students already enrolled who had a federal loan for their program by June 30, 2026, can keep the older limits for up to three academic years, or the rest of the program if shorter, while they stay enrolled.
Repayment: new loans can be repaid under a Tiered Standard Plan (fixed payments over a term set by the amount owed) or the new Repayment Assistance Plan. That plan charges 1 to 10 percent of adjusted gross income, with a $10 monthly minimum and $50 less for each dependent, and forgives what remains after 360 qualifying payments. Parent PLUS loans cannot use it.

California aid: Cal Grant, Middle Class Scholarship and Chafee Grant

In California, the California Student Aid Commission (CSAC) runs state aid. Students apply with the Free Application for Federal Student Aid (FAFSA) or the California Dream Act Application (CADAA), which serves students such as undocumented students who meet California's AB 540 requirements, and students from mixed-status families. CSAC announced on October 2, 2026, that 2027–28 applications are open.

Deadlines for 2027–28. CSAC lists March 2, 2027, as the state priority deadline to file and to confirm your GPA has been submitted. Students at a California community college have until September 2, 2027. Track state aid in CSAC's WebGrants for Students account.

Program	Who it is for (in brief)	Amount, as published by CSAC	Points to check
Cal Grant A	Students who meet need, income and asset rules; minimum 3.0 high school GPA	For 2026–27 new recipients, up to $15,588 at UC, $6,838 at CSU and $9,358 at a private nonprofit college	Renewal needs a FAFSA or CADAA each year, staying within income and asset limits, and satisfactory academic progress
Cal Grant B	Students who meet need, income and asset rules; minimum 2.0 GPA	First year: an access award of $1,648 for costs other than tuition; later years add a tuition award	Same renewal rules
Middle Class Scholarship	Undergraduates at UC, CSU or a community college bachelor's program; for 2026–27, income and assets up to $250,000	Varies with cost of attendance, other aid and state funding	Amounts can change. CSAC notifies students by mid to late August, so a spring offer may show an estimate
Chafee Grant	Students in foster care for at least one day between ages 16 and 18, and under 26	Up to $5,000 a year; $4,500 for 2026–27	Separate application; limited funds, first come, first served

Cal Grant offers depend on the final state budget. If an offer lists state aid, ask whether the amount is final or estimated.

How to ask for a second look

An aid office can adjust, case by case, the information used to set your aid when a family has special circumstances. Federal guidance gives examples such as a job loss or other change in income or assets; medical, dental or nursing home costs not covered by insurance; other family members in college; and dependent care or school tuition for younger children. Colleges must tell students they can ask, and cannot refuse all requests. The aid office's decision is final and cannot be appealed to the Department of Education.

Ask the aid office how to request a special-circumstances review.
Explain in a short letter what changed and when, with numbers, and attach proof such as a layoff notice or medical bills.
Ask whether the review could change gift aid, not just loans.
If another college offered more gift aid, ask whether this one will consider it. Policies differ.
Get any revised offer in writing.

The health line on the bill

Student health plans. Federal rules let a college include a health insurance charge billed to all students in the cost of attendance. If the student already has coverage, ask whether the college allows a waiver, what coverage qualifies and the deadline.

A parent's plan until 26. If a parent's plan covers dependents, a young adult can generally stay on it until 26, whether or not they are in school, married, living at home or financially dependent. For a college far away, check the plan's network where the student will live. To weigh the options, see how to compare two health plans beyond the premium; if a parent loses a job and the family's coverage, see the checklist for after a job loss.

Medi-Cal. In California, a student with low household income may qualify for Medi-Cal. For a student claimed as a tax dependent, Covered California counts the parents' income too. Applying through Covered California shows whether the student qualifies. See Medi-Cal in plain language.

Health-program students. Nursing, allied health and other clinical programs often add background checks, required immunizations and tests, clinical fees, uniforms, equipment and licensing exam fees. Ask the program for a written list and whether the cost of attendance includes them; if not, ask whether the aid office can adjust it.

Before you say yes

Each admission letter gives a deadline to accept. The University of California, for example, asks fall 2027 first-year students to accept by May 1. Before the deadline:

Check that every offer uses the same cost lines, including the health plan.
Subtract only gift aid.
Find out how each grant and scholarship renews: GPA, units, income limits or first year only.
Ask whether tuition and housing are expected to rise.
Ask whether any state aid shown is final or estimated.
Decide how you would pay each net cost, and how much of it would be loans.
Make sure the 2027–28 FAFSA or CADAA is filed and CSAC has the GPA.

Mistakes that cost money

Comparing by total gift aid. A large grant from an expensive college can still leave the highest net cost.
Treating a Parent PLUS loan as aid. It is the parent's loan, at 9.07% for 2026–27, and it cannot use the new income-based plan.
Ignoring renewal conditions, including what happens if the student drops below full time.
Comparing billed costs only. Living at home can cost less overall than lower tuition elsewhere.
Missing the March 2 state priority deadline, which can cost state aid.

This page is general information, not financial or legal advice. Each college's aid office decides its aid; CSAC decides state aid.

Sources

(GENERAL-26-33) Interest Rates for Federal Direct Loans First Disbursed Between July 1, 2026 and June 30, 2027 — U.S. Department of Education, Federal Student Aid, June 4, 2026.
Student loan borrowers: important student loan changes effective July 1 — California Department of Financial Protection and Innovation, accessed October 26, 2026.
(LOANS-26-05) One Big Beautiful Bill Act NSLDS Eligibility Processing Updates — U.S. Department of Education, Federal Student Aid, April 24, 2026, updated May 7, 2026.
Loan Changes: Loan Limits and Exceptions, Part 1: Legislation and Provisions — U.S. Department of Education, Federal Student Aid, 2026 training conference (preliminary), accessed October 26, 2026.
The Future of Federal Loan Repayment: Servicing and System Impacts — U.S. Department of Education, Federal Student Aid, 2026 training conference (preliminary), accessed October 26, 2026.
2025–2026 Federal Student Aid Handbook, Volume 8, Chapter 4: Annual and Aggregate Loan Limits — U.S. Department of Education, Federal Student Aid, accessed October 26, 2026.
2026–2027 Federal Student Aid Handbook, Volume 3, Chapter 2: Cost of Attendance (Budget) — U.S. Department of Education, Federal Student Aid, accessed October 26, 2026.
2026–2027 Application and Verification Guide, Chapter 5: Special Cases — U.S. Department of Education, Federal Student Aid, accessed October 26, 2026.
2026–2027 Federal Student Aid Handbook, Volume 6, Chapter 2: The Federal Work-Study Program — U.S. Department of Education, Federal Student Aid, accessed October 26, 2026.
Direct PLUS Loan Basics for Parents — U.S. Department of Education, Federal Student Aid, September 2015 (borrowing limits since changed), accessed October 26, 2026.
College Financing Plan — U.S. Department of Education, accessed October 26, 2026.
(OPE-25-01) 2026–27 College Financing Plan — U.S. Department of Education, September 25, 2025.
How to Apply for Financial Aid — California Student Aid Commission, accessed October 26, 2026.
Grant Special Alerts — California Student Aid Commission, including GSA 2026-59 (October 2, 2026), accessed October 26, 2026.
2026–27 Cal Grant Comparison (G-30) — California Student Aid Commission, December 2025.
Middle Class Scholarship — California Student Aid Commission, accessed October 26, 2026.
California Chafee Grant for Foster Youth — California Student Aid Commission, accessed October 26, 2026.
10 Things to Know About the CADAA — California Student Aid Commission, July 2026.
Young Adult Coverage — U.S. Department of Health and Human Services, accessed October 26, 2026.
Health Care Coverage Options for College Students — HealthCare.gov, Centers for Medicare & Medicaid Services, accessed October 26, 2026.
Young Adults and Students (outreach toolkit) — Covered California, November 2013, accessed October 26, 2026.
First-year dates and deadlines — University of California, accessed October 26, 2026.
Public Law 119-21 (July 4, 2025), section 81001: loan limits for graduate and professional students and parent borrowers — U.S. Government Publishing Office, accessed October 26, 2026.
(GENERAL-26-28) FY27 Sequester-Required Changes to the Title IV Student Aid Programs — U.S. Department of Education, Federal Student Aid, May 13, 2026 (Direct Loan fees).
Student Loan Types and Limits in the FY2025 Budget Reconciliation Act (IN12585) — Congressional Research Service, July 10, 2025, reproduced by EveryCRSReport.com, accessed October 26, 2026.