It is not easy task figuring out how much money you will need to pay for college, or in determining how much you need to save before entering school and the amount of aid that you will require. However, there are numerous financial aid calculators available to help you determine how much your schooling will cost, what amount you need to save and the financial aid that you will need. Here is a list of the four most popular financial aid calculators available online.
Image Cost Projector
If you are more than a couple of years away from attending college, the annual rise in college tuition makes it difficult to determine how much college will cost when you get there. The calculators can help you estimate what it the costs of college will be for you. The average year increases in college costs is about 5-8% and this calculator estimates the costs of college for when you will enter college. This calculator uses the current one-year costs of tuition, room and board, fees, travel and incidental expenses, combined with the number of years until you graduate high school to figure out estimated costs of when you enter college.
Savings Plan Designer (Flat Contribution)
Once you have established your college savings goal, the calculators such as the Savings Plan Designer can assist you in figuring out how much you need to put away monthly into an interest earnings savings account to be able to attain your goal. It is suggested that parents try and save anywhere from one-third to half of the total projected costs of their child's college education. The best time to start a college savings plan is when the child is born.
Expected Family Contribution (EFC)
This calculator is used to figure out the amount that your family is expected to contribute to your college costs. Ones like this allow you to gain insight regarding your financial aid eligibility. Remember, that the purpose of financial aid is to help with the costs of attending college that your family can not pay for. It is the total costs of college minus the expected family contribution that is considered your financial need. Your financial need is in turn the amount of financial aid you are eligible to get.
Loan Payment Calculator
These type of financial aid calculators are used to compute an estimate of the amount you will have to pay in monthly loan payments and the annual salary that you will need to have in order to be able to pay your student financial aid loans. These types of calculators can be used with a variety of federal education loans. In the Loan Payment Calculator, it is assumed that the interest rate of the loan and the monthly installment will remain the same during the duration of the loan repayment period.
These are just a few of the financial aid calculators available to assist you in planning your before, during and after college finances. With the costs of attending college ever increasing, it is imperative that a sound financial plan be completed by the student and their family prior to enrolling.