To compare financial aid award letters from different colleges, compare them based on the out-of-pocket cost. The out-of-pocket cost is the difference between the total cost of attendance and the total gift aid (grants and scholarships). The cost of attendance includes tuition and required fees, room and board, books, supplies, transportation, personal expenses, dependent care and possibly student health insurance and the cost of a computer. Gift aid does not need to be repaid and includes grants, scholarships, tuition waivers and housing waivers. The out-of-pocket cost is the bottom line cost of college, the amount the family must pay,.
