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Lesson 8 of 11 14 min

College Costs and Scholarships

Sticker price vs. net price, the FAFSA, grants, and scholarships.

Written by Mateo LermaLast reviewed 4 sourcesEditorial standards

All lessons in Money After High School

Step 1: The lesson

How much does college really cost?

A college's sticker price is what it charges before aid. Your net price is what you actually pay after grants and scholarships. Many students pay far less than the sticker price.

Key term

Cost of attendance

The full yearly cost: tuition and fees, housing, food, books, transportation, and personal expenses.

Colleges that offer federal aid are required to have a net price calculator on their website. Use it early — a more expensive-looking school can end up cheaper.

  • Grants: aid you don't repay, often based on need (like the federal Pell Grant).
  • Scholarships: aid you don't repay, based on merit, talents, background, or need.
  • Work-study: part-time jobs for students with financial need.
  • Loans: money you must repay, with interest.

The FAFSA (Free Application for Federal Student Aid) at studentaid.gov unlocks federal aid and much state and college aid. It typically opens in the fall before you start college — check studentaid.gov for this year's dates. In Texas, students who can't file the FAFSA may be able to file the TASFA for state aid.

Scholarship scam warning

Never pay to apply for a scholarship or to "guarantee" one. Legitimate scholarships don't charge fees, and the FAFSA is always free.

Other ways to cut costs: dual credit and AP courses, starting at a community college and transferring, and living at home.

Step 2: See it

Sticker price vs. net price

Sticker price vs. net priceHypothetical example

A hypothetical college costs $28,000 a year. After $9,000 in grants and $3,000 in scholarships, the net price is $16,000, which a student might cover with savings, work, and possibly loans.

Cost of attendance (sticker price)
$28,000
Grants
−$9,000
Scholarships
−$3,000
Net pricewhat you actually pay
$16,000

Step 3: Real-world example

The "expensive" school that cost less

Imani compares two hypothetical colleges using their net price calculators:

  • College A: $24,000 sticker price, $4,000 in expected aid → $20,000 net price.
  • College B: $45,000 sticker price, $30,000 in expected aid → $15,000 net price.

The school that looked nearly twice as expensive would cost her $5,000 less a year. Compare net prices, not sticker prices.

Step 4: Knowledge check

Quiz: College Costs and Scholarships (3 questions)

Answer each question, then check your answer to see the explanation. Retake it as many times as you like.

Question 1 of 3

ScenarioA college's cost of attendance is $30,000. You're offered $12,000 in grants and $4,000 in scholarships.What's your net price?

Choose an answer.

Step 5: Summary

Summary: College Costs and Scholarships

Compare net price, not sticker price, using each college's net price calculator. Aid includes grants, scholarships, work-study, and loans — only loans are repaid. File the FAFSA (free, at studentaid.gov) as early as you can, never pay for scholarships, and consider dual credit and community college to cut costs.

Step 6: What you should remember

Key takeaways: College Costs and Scholarships

  • Net price = cost of attendance − grants − scholarships.
  • Use every college's net price calculator.
  • The FAFSA is free and unlocks most aid.
  • Never pay to get a scholarship.
  • Dual credit and community college can save a lot.

Key terms in this lesson

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Sources and further reading

Rules, rates, and official figures in this lesson are based on these sources. People and numbers in examples are hypothetical.

  1. 1.
    FAFSA Application (opens in a new tab)

    Federal Student Aid (U.S. Department of Education) · studentaid.gov

  2. 2.
    Federal Grants for College or Career/Trade School (opens in a new tab)

    Federal Student Aid (U.S. Department of Education) · studentaid.gov

  3. 3.
    Finding and Applying for Scholarships (opens in a new tab)

    Federal Student Aid (U.S. Department of Education) · studentaid.gov

  4. 4.
    College Scorecard (opens in a new tab)

    U.S. Department of Education · collegescorecard.ed.gov

Last checked September 2026: The FAFSA process and timeline. Rules and numbers like these can change — check the official source before making a decision.

Cite this lesson

Financial Literacy Club. (2026, September). College costs and scholarships. https://learnwithflc.org/courses/money-after-high-school/college-costs

Spot an error or an out-of-date number? Tell us and we'll fix it. Read our editorial standards.