When calculating net cost on a financial aid offer, which types of aid are subtracted from the Cost of Attendance?

When calculating net cost on a financial aid offer, which types of aid are subtracted from the Cost of Attendance?

• A. FWS, grants and scholarships
• B. Grants and scholarships
• C. Loans (Federal and private), grants, and scholarships
• D. Grants only

Answer: (A)

Net cost is the amount you actually have to pay after applying aid that reduces your bill. Grants and scholarships are gift aid, so they directly lower the amount you owe. Federal Work-Study also reduces your net cost because you earn funds you can apply toward costs. Loans, while they cover expenses, must be repaid later, so they aren’t subtracted from the net cost in this calculation. Therefore, subtracting Federal Work-Study, grants, and scholarships gives the correct net cost.

Net cost is the amount you actually have to pay after applying aid that reduces your bill. Grants and scholarships are gift aid, so they directly lower the amount you owe. Federal Work-Study also reduces your net cost because you earn funds you can apply toward costs. Loans, while they cover expenses, must be repaid later, so they aren’t subtracted from the net cost in this calculation. Therefore, subtracting Federal Work-Study, grants, and scholarships gives the correct net cost.