The cost of education and training is a major factor in many students’ decisions. Costs vary enormously between countries, institutions and pathways, and so do the ways to pay. Understanding your options early can open doors you might have thought were closed. In this lesson you will learn about the full cost of study and the main ways to fund it. This lesson is educational, not personal financial advice.
Understanding the full cost
The cost of study is more than tuition.
| Cost | Examples |
|---|---|
| Tuition and fees | course fees, exam and registration fees |
| Housing | student accommodation or rent |
| Food and living costs | groceries, utilities, phone |
| Books and equipment | textbooks, laptop, tools, uniforms |
| Transport | travel to campus, work placements or home |
Sticker price versus net price
The sticker price is the published cost. The net price is what you actually pay after grants and scholarships. In some countries the difference can be large. For example, colleges in the United States are required to provide a net price calculator on their websites to estimate what a student might pay based on their circumstances.
Ways to pay
Grants and scholarships
Grants and scholarships are money you generally do not have to repay.
- Need-based awards consider your family’s financial situation.
- Merit-based awards recognise achievements in academics, sports, arts or leadership.
- Some target specific groups, subjects, communities or career goals.
Search your school, the institutions you are applying to, community organisations, employers and official government sources. Many smaller awards receive fewer applicants, so they are worth applying for.
Student loans
Student loans must be repaid, usually with interest. Government-backed student loans often have different terms from private loans, sometimes with repayments linked to income after graduation. Terms vary greatly between countries, so read the details carefully: interest rate, when repayment starts, how much you will repay each month and for how long.
Government financial aid applications
Many countries have an official application for student financial support. In the United States, students complete the FAFSA (Free Application for Federal Student Aid) to be considered for federal grants, loans and work-study. In the United Kingdom, students apply to the relevant student finance body for their nation. Deadlines matter, and some aid is limited, so apply as early as possible.
Other ways to reduce costs
- Work-study and part-time work: earning money while studying, ideally in a role related to your field
- Apprenticeships: paid training, with employers often covering course costs
- Employer sponsorship: some employers pay for further study for their staff
- Starting at a college: in some systems, beginning at a lower-cost college before transferring can reduce total costs
- Living at home: can significantly cut housing costs
- Buying used textbooks or using library copies
Example
Mia was accepted to two universities. The first had a lower sticker price, but the second offered her a scholarship and a grant. After calculating the net price of each, including housing and transport, she found the second university was actually cheaper for her. Comparing net prices, not sticker prices, changed her decision.
Avoiding scholarship and aid scams
Be cautious of:
- anyone who asks you to pay a fee to apply for a scholarship or to “guarantee” you will win
- companies charging to complete free government aid forms for you
- requests for bank details or passwords to “process” an award
- offers you never applied for that ask for payment to claim
Legitimate scholarships generally do not charge application fees. Use official websites and ask your school counsellor if you are unsure.
Make a funding plan
Create a simple funding plan: estimated total cost per year, expected grants and scholarships, savings, family contributions if any, part-time work and any loan amount. Compare this across your options. Borrow only what you need, and understand how repayment will work before signing anything.
Questions to ask about any loan
- What is the interest rate, and is it fixed or variable?
- When does repayment start, and how much will each payment be?
- What happens if my income is low after I finish?
- Can I repay early without penalties?
Key takeaways
- The full cost of study includes tuition, housing, food, books and transport.
- Compare net prices, after grants and scholarships, rather than sticker prices.
- Grants and scholarships do not usually need repaying; loans do, with interest.
- Apply for aid early, consider other cost-saving routes and avoid fee-charging scams.
Practice
A programme costs 9,000 a year in tuition and 7,000 a year in living costs. A student receives a 3,000 grant and a 2,000 scholarship. 1. What is the total cost per year? 2. What is the net price per year? 3. If the student earns 2,500 a year from part-time work, how much is left to cover with savings or loans?
Answers: 1 9,000 + 7,000 = 16,000. 2 16,000 − 3,000 − 2,000 = 11,000. 3 11,000 − 2,500 = 8,500.