Why Use a Financial Aid Estimator?
Here, we’ll discuss the benefits of using a financial aid estimator in your college planning. Then, we’ll discuss the five best financial aid estimators. You’ll learn about their key features, pros and cons, and what each one is best for.
What are financial aid estimators in the first place? These are online tools that enable college students to estimate their financial aid. Note that these are usually in the form of calculators that provide dollar amounts.
These tools use your family’s financial and non-financial information, including:
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- Number of people in your household
- Taxable and non-taxable income
- Assets and investments
- Number of siblings in college
The best financial aid estimators use formulas that the U.S. Department of Education uses, too. These include the Federal Methodology (FM) formula, which calculates EFC or SAI.
In the case of college net price calculators, other formulas may also be used. The EFC/SAI, nonetheless, may still be considered. But colleges usually have their own school-specific formulas.
Note, however, that the financial aid estimate is just that – an estimate. Your official financial aid offers will be different in type and amount.
Why use financial aid estimators? After all, you can just wait for the official financial aid offers and decide from there.
But, as you’ll agree, once you use it, using a financial aid estimator brings many benefits.
- Understanding your potential college costs: You’ll have a general understanding of your cost of attendance, financial aid, and net cost. Financial aid estimators consider more than just tuition and fees (i.e., direct costs). While direct costs are your first consideration, indirect costs must be, too. Direct costs comprise 40%, while direct costs comprise 60% of the total cost of attendance. You must then look for financial aid that can cover your indirect costs, too.
- Planning your college budget before you apply: You can create a more realistic budget with information from financial aid estimators. Plus, you use the estimated financial aid as a factor in choosing colleges.
Take the time to use financial aid estimators. You’ll find the information from a reliable college cost calculator useful.
Top Free Online Tools to Estimate Financial Aid
Federal Student Aid Estimator – The Official FAFSA Tool
Go straight to the official source – the FAFSA calculator. This is the most reliable of the free financial aid tools because it uses the same:
- Information required for completing the FAFSA
- The formula for determining federal student aid eligibility
Among its key features are:
- Provides a good estimate of federal student aid (grants, work-study, and loans)
- Depends on verifiable information (family income, assets and investments, and household size)
- Aids in understanding your EFC or SAI that, in turn, affects your financial aid offer
Pros:
- Official source
- Comprehensive information and coverage for federal student aid
- Free and easy to use
Cons:
- Limited to estimating federal financial aid
- Doesn’t allow direct college cost comparisons
The Federal Student Aid Estimator is best for first-timers on the financial aid scene. If you’re an incoming college student, check it out first. You’ll get a straightforward financial aid estimate.
Be ready with your financial information, too, based on financial documents. Tax returns, bank statements, and proof of non-taxable income are examples.
College Net Price Calculators – How Schools Help You Estimate Costs
Check out the online college affordability calculator for your preferred colleges, too. Ivy Leagues such as Harvard, Princeton, and UPenn, have them. UMich, Duke, and UC Berkeley also offer them, too.
Every college tuition estimator has its formula to estimate the net cost of attendance. The net cost of attendance factors in direct and indirect costs, plus financial aid.
Among their key features are:
- Provide college students and their families with school-specific estimates
- Consider financial data, including cost of attendance and family financial status
- Enable users to compare costs between colleges and make more informed decisions
Pros:
- Provide school-specific net cost of attendance and cost breakdown
- Offer more transparency into the college’s financial aid process
Cons:
- It may not include all financial aid options
- Demand detailed financial information for each school
Cost of attendance is the foremost concern among students and their families. In fact, it can make or break your decision, especially if you’re not from a wealthy background. By using an online net price calculator, you’ll have a better sense of possible out-of-pocket costs.
BigFuture by College Board – A Comprehensive Cost Estimator
If you’re looking for a comprehensive cost estimator, go for BigFuture. You must also provide your financial information, including your FAFSA information.
Among its key features are:
- Provides an estimate of your EFC or SAI, a crucial element in determining financial aid
- Allows students to make direct comparisons of estimated cost of attendance among colleges
- Gives a detailed breakdown of possible deficits after financial aid
Indeed, BigFuture’s calculator is a useful tool to get the bigger picture of financial aid.
Pros:
- Comprehensive overview of EFC/SAI and estimated financial aid
- Offers information on a wide range of colleges and universities
Cons:
- Isn’t school-specific
If you’re in the early stages of researching colleges, use this tool. Once you have a shortlist of preferred colleges, use their net price calculators. You’ll have a better sense of the net cost of attendance in your shortlisted colleges.
TuitionFit – Comparing Real Financial Aid Offers
TuitionFit is an online platform that promotes transparency in the financial aid process. Students use its data-driven tools to compare financial aid between colleges. But you must already have financial aid offers to use the service.
Among its key features are:
- Provides tools for side-by-side financial aid comparisons from participating colleges
- Enables students to see the financial aid offers that other students in similar financial situations receive
- Promotes transparency by showing the net cost of attendance among various schools
Pros:
- Free and easy to use
- Real offer comparisons based on information submitted by other students
- Reduces unpleasant surprises of real cost of attendance
- Focuses on affordability and accessibility
Cons:
- Limited to participating colleges only
- Must have real financial aid letters for comparison purposes
- Comes with privacy concerns about sharing personal financial information
If you’ve already received many financial aid offers, consider TuitionFit. You can make apples-to-apples comparisons about the net cost of attendance for different colleges.
Student Loan Calculators – Understanding Borrowing Costs
If you’re planning on borrowing money for college, use a student loan calculator. Consider these reliable student loan calculators:
- Federal Student Aid Loan Simulator by the U.S. Department of Education
- Student Loan Hero Loan Calculator by LendingTree
- Student Loan Payment Calculator by NerdWallet
You’ll gain a better understanding of the borrowing costs. In turn, you can make informed decisions that will lead to better repayment terms.
Among their key features are:
- Provide estimated monthly loan payments
- Enable comparisons of federal and private loans
- Give a general idea of the effects of student loan repayments after graduation
Pros:
- Aids in budget planning and loan strategy
- Helps prevent over-borrowing
Cons:
- Focuses on loans only
Keep in mind that student loans are useful in funding your college education. But be cautious in taking them out because of their repayment obligation. The average student loan debt is more than $38,000/student, and it can take 10-20 years to repay.
How to Use These Tools Effectively
Again, use financial aid estimators to answer the question, “How much financial aid can I get?” But these are only tools with their reliability based on your effective use.
What Information You Need to Get an Accurate Estimate
Even the best college scholarship estimator has its limitations based on your input. You must provide the accurate and complete information being asked for. If you already have your FAFSA documents on hand, use the information therein.
As with filling in the FAFSA, financial aid estimators usually ask about:
- Family income, including your parents’ or legal guardians’ taxable and non-taxable income. If you’re an independent student, you only need to provide your total income.
- Assets, savings, and investments, including savings accounts, retirement accounts, stocks, and bonds.
- Household size, including your parents, siblings, and others in your household
- Number of college students in your household
Financial aid estimators also ask for your cost of attendance and school preferences.
Understanding Your Results: Grants, Loans, and Scholarships
Once you’ve entered the information, you’ll get a general estimate of the financial aid you’ll likely get. Every financial aid estimate differs not only in amount but also in the type of financial aid, too.
There are three major types of financial aid you must be aware of.
- Grants are free money because you don’t have to repay them. Pell Grants and state-based grants, such as California’s Cal Grant, are common.
- Scholarships are also free money and are awarded based on financial need and/or merit. Academic achievements, creative talents, and athletic skills are the usual merits.
- Loans aren’t free money because these must be repaid, usually with interest. Federal student loans are common, but private loans are also available.
Work-study aid is also common. In it, you’ll work part-time and be paid for it. Your salary can be used to pay for your college costs.
What to Do If Your Estimated Aid Is Lower Than Expected
Don’t be discouraged if the estimated aid isn’t as high as you expected it to be. Double-check the information you entered for possible errors. Again, remember that it’s only an estimate, so it’s neither an absolute nor an accurate number.
What if your official financial aid offer is lower than you expected? Here’s what you can do to remedy the situation.
- Communicate with your college’s financial aid office. You can provide additional information about your unique circumstances. Appeals for higher financial aid are usually available in colleges.
- Apply for scholarships and grants, too. Do so ASAP, especially since these are more competitive.
Most importantly, create a budget and follow it. A lower-than-expected financial aid offer won’t be a hindrance if you’re money-smart.
Next Steps After Estimating Your Financial Aid
Your effective use of a federal aid prediction tool is only the first step. You must apply for financial aid, too, or else you’ve just wasted your time.
Filling Out the FAFSA for Official Aid Offers
The Free Application for Federal Student Aid (FAFSA) is the official form for federal student aid. You must complete and submit it on time to qualify.
Furthermore, colleges, corporations, and private organizations use it for their own purposes. This is particularly true for need-based programs. Examples include the Coca-Cola Scholars Program and Dell Scholars Program.
Searching for Additional Scholarships
The maximum federal financial aid is $7,395 (2024-2025). This isn’t enough to cover even the average in-state tuition and fees of $11,011 (U.S. News, 2024-2025). Note that the out-of-state tuition and fees are $24,513, while it’s $43,505 for private colleges.
For this reason, you must also explore your scholarship options. If you have a list of scholarships you’re qualified for, you can use a grants and scholarships calculator. You’ll get a general idea of your non-government financial aid.
Talking to a Financial Aid Advisor for More Help
Then, discuss your best options with a financial aid advisor. You’ll receive personalized guidance about the financial aid process. This way, you’ll feel less overwhelmed by the financial aid process. You’ll also maximize your financial aid opportunities.
Final Thoughts
Estimating your financial aid can save you money. First, you can create a more realistic college budget. You’re more able to estimate your out-of-pocket costs.
Second, you have more time to find more funding sources. You can identify gaps in your funding and explore your scholarship and grant options.
Third, you’re more prepared to appeal or negotiate your financial aid offers. This is useful because federal student aid isn’t enough to cover tuition and fees.
Indeed, using financial aid estimators isn’t only about the money. You’re also more empowered to make smarter college decisions, such as college choice.