Transparent method
The formula
Worked example
Example inputs
How to interpret the result
A scholarship's advertised value and its actual reduction in the family's real out-of-pocket cost can differ once renewal conditions and interactions with other aid are factored in, since some scholarships reduce need-based aid dollar for dollar rather than adding on top of it, and some carry GPA or enrollment requirements that put future renewal at risk.
Before you rely on it
What to check
Confirm from the school's official aid offer whether the scholarship reduces other aid, and check the specific renewal requirements before counting on it for all four years.
The common error
Where people go wrong with scholarship impact calculator
Treating a scholarship's full advertised value as a straightforward reduction in total college cost. Some scholarships reduce other aid in the same package, and renewal conditions can mean the value isn't guaranteed to repeat in every subsequent year.
Sensitivity evidence
How annual total cost of attendance changes the estimated borrowing need
| Annual total cost of attendance | Estimated borrowing need | Annual net cost before family contribution | Total gift aid |
|---|---|---|---|
| $36,000 | $24,000 | $16,000 | $20,000 |
| $40,500 | $42,000 | $20,500 | $20,000 |
| $45,000worked example | $60,000 | $25,000 | $20,000 |
| $49,500 | $78,000 | $29,500 | $20,000 |
| $54,000 | $96,000 | $34,000 | $20,000 |
Every input, tested
Which input moves the estimated borrowing need most
| Input | Tested from | To | Estimated borrowing need at each end | Swing |
|---|---|---|---|---|
| Annual total cost of attendance | $40,500 | $49,500 | $42,000 to $78,000 | $36,000 (60%) |
| Program years | 3.0 years | 5.0 years | $45,000 to $75,000 | $30,000 (50%) |
| Annual grants | $10,800 | $13,200 | $64,800 to $55,200 | $9,600 (16%) |
| Annual family cash contribution | $9,000 | $11,000 | $64,000 to $56,000 | $8,000 (13%) |
| Annual scholarships | $7,200 | $8,800 | $63,200 to $56,800 | $6,400 (11%) |
Two variables at once
Estimated borrowing need by annual total cost of attendance and annual grants
| Annual total cost of attendance \ Annual grants | $9,600 | $12,000 | $14,400 |
|---|---|---|---|
| $36,000 | $33,600 | $24,000 | $14,400 |
| $40,500 | $51,600 | $42,000 | $32,400 |
| $45,000 | $69,600 | $60,000 | $50,400 |
| $49,500 | $87,600 | $78,000 | $68,400 |
| $54,000 | $105,600 | $96,000 | $86,400 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Annual total cost of attendance | $45,000 |
| Annual grants | $12,000 |
| Annual scholarships | $8,000 |
| Annual family cash contribution | $10,000 |
| Program years | 4.0 years |
| Estimated borrowing need | $60,000 |
| Annual net cost before family contribution | $25,000 |
| Total gift aid | $20,000 |
Where the inputs come from
Annual total cost of attendance comes from the school's cost page or award letter, including tuition, fees, housing, food, books and personal costs. Annual grants are aid that need not be repaid, such as Pell grants and school grants, annual scholarships are merit or outside awards, and annual family cash contribution is what you can pay from savings and income each year. Program years is the length of the degree. Award letters differ in how they count loans, so separate them.
Using the estimated borrowing need in a real decision
Compare offers from several schools using this number rather than the sticker price, since a school with a higher price and a bigger grant can cost less.
When the result stops applying
Some scholarships shrink or vanish after the first year if requirements are not met, and outside awards may reduce need-based aid at some schools. Costs rise each year, and the calculation holds them flat. Work-study and loans are not gift aid, though award letters sometimes list them together. Taxes may apply to scholarship money used for non-qualified costs.
What to compare it with
Project rising costs with the college cost calculator, and see the payment on the student loan payment page. The college savings goal and 529 pages help fill the gap, and the education ROI calculator compares cost with earnings. Ask each school's financial aid office about renewal terms.
People also ask
Frequently asked questions
What is the difference between grants and loans?
Grants and scholarships are gift aid you do not repay, while loans must be repaid with interest. Award letters often mix them, so separate them when comparing.
Do scholarships renew each year?
Many require a minimum GPA or credit load to renew, and some are for one year only, so check the terms before counting on them.
Can outside scholarships reduce my other aid?
Sometimes. Schools may adjust need-based aid when you receive outside awards, so ask the financial aid office how they treat them.