This document outlines 10 steps for applying for financial aid in Rhode Island: 1. Calculate direct costs such as tuition, fees, room and board. 2. Add up any grants and scholarships (gift aid) received from each school. Subtract this gift aid from direct costs to determine how much needs to be paid directly. 3. Add up indirect costs like travel, books, and living expenses. Determine if any aid like work-study can help offset these costs. It then provides guidance on determining resources, borrowing needs, estimated post-graduation salary, and having discussions with students on affordability.

1. 10 Steps to Applying for
Financial Aid in RI

2. 1.
Add up direct
costs.

3. Direct costs include tuition & fees, room &
board and other items that will be listed on
your tuition bill.
Books & supplies, travel costs, and living
expenses, although they will be included in
the school’s total “Cost of Attendance” are
indirect costs and should not be added to
your direct costs here.

4. 2.
Add up your
gift aid.

5. Add up the total amount of grants and scholarships
you received from each school. This is “gift aid” that
doesn’t need to be repaid. Make sure to note
whether or not the reward will be renewable for
future years.

6. 3.
Subtract your
gift aid from
your direct
costs.

7. The figure you are left
with will be the amount
you need to pay
directly to the college
when your tuition bill
arrives, via loans,
payment plans, work
study, etc. Use this
figure to compare the
total direct costs of
each college.

8. Remember, the amount of an “award” at one
college may be larger than another, but what
really matters in the end is how much you will
need to pay – through your savings, assets,
loans and work-study (earnings).

9. 4.
Add up your
indirect costs.

10. Add up the costs of travel, living
expenses, books & supplies and other
indirect costs at each school.

11. Did the school provide any
aid that will help you offset
the indirect costs, such as
work-study?
Keep in mind, even if the
student received work study
funds, they need to put in the
time to earn those funds and
the funds will be paid to the
student as they are earned.
If the student didn’t receive
work study funds, he or she
may still be able to find a
part-time job on or off
campus to help cover indirect
expenses.

12. 5.
Determine
your
resources.

13. What resources does your family have to pay
for college? Consider savings and other
assets you will use towards your tuition costs.
Do you have the resources to cover
indirect costs as well?

14. 5.
What are your
borrowing
needs?

15. What student loans did the
school include in your aid
package?
For starters, there should be
Federal Direct Subsidized and/or
Unsubsidized Student Loans in your
award letter if you completed the
FAFSA. There may also be Federal
Perkins Loans, depending on what
funds the school has available and
your eligibility.
The school may have awarded
another loan directly available
through the school. Be sure to
understand rates and terms before
taking this on.

16. Were parent loans included in your aid package?
Some schools include the Federal PLUS Loan in award packages and
others don’t. If it is in your award, you don’t have to borrow it if you
think you can find a better loan for you and your family. If it isn’t in your
award, you can still apply for it to help you cover college costs if you
think it is the right option for you.

17. Now that you understand how much you will need to pay directly to the
school, know your indirect costs, and have assessed your resources, it’s
time to determine what you and the student will each need to borrow to
cover costs (direct and indirect) at each of the schools on the list. Using
the calculator at http://www.risla.com/paying-for-college-calculator can
help you with this task. Comparing your borrowing needs at each school
is a great way of comparing financial aid awards.

18. 7.
Estimate the
student’s salary
after
graduation.

19. You may find that your child
wants to go to one school
much more than another,
even if it means stretching the
family budget and borrowing a
lot more.
Before deciding what to do,
estimate the student’s salary
after graduation based on
their career choice and
determine what their ability to
repay the loans is at
http://www.risla.com/how-
much-can-i-afford-to-borrow-
for-college. Have a heart-to-
heart with your student based
on what you find.