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Choosing a College: Net Price, Early Decision and How Much to Borrow

The decisions that set what college costs and what it leads to, and how to compare offers side by side.

Read time: 3 minutes Updated: September 2026

The short version

The college decision is really four decisions: where to apply, how to apply, which offer to accept, and how much to borrow. Families who treat it as one decision, made on campus tours, are the ones who end up surprised by the bill.

Use each school's net price calculator early, avoid binding early decision unless the numbers work, and compare offers on net price after grants only.

In this guide

01

Sticker price and net price

The published cost of attendance includes tuition, housing, food, books and travel. Few families pay it. What matters is the net price: the cost after grants and scholarships, which never have to be repaid.

Every college that takes federal aid must have a net price calculator on its website. It takes about fifteen minutes with last year's tax return. Run it for every school on the list before applying, not after.

Private schools can cost less

A private college with a high sticker price and large grants can cost a family less than a public university that gives little aid. The calculator is the only way to know.

02

How to apply

OptionBindingWhat it means
Early decisionYesApply early to one school. If admitted with adequate aid, you must attend and withdraw your other applications. You cannot compare offers.
Early actionNoApply early and hear early, without a commitment. You can compare offers until the spring deadline.
Restrictive early actionNoLike early action, but limits early applications to other private schools.
Regular decisionNoThe most time to compare schools and aid.

Early decision can raise the odds of admission at some schools, but it gives up the ability to compare aid offers. Use it only when the net price calculator shows the family can afford that school without comparing.

03

Comparing offers

Aid letters are not standardized, and many mix grants, loans and work-study together into one "aid" number. Separate them.

TypeRepaid?Notes
Grants and scholarshipsNoCheck whether each renews every year and what grades it requires.
Federal student loansYesIn the student's name, with fixed rates and repayment options.
Parent PLUS loansYesIn the parent's name. Often listed as if it were aid.
Work-studyEarnedPaid only if the student finds a job and works the hours.

Subtract grants and scholarships from the full cost of attendance. That is the real price. If the gap is large, it is reasonable to write to the aid office, explain any change in family circumstances, and ask whether they can reconsider. Include any better offer from a comparable school.

04

How much to borrow

A widely used rule of thumb is to keep total student loans below the salary the student expects in the first year of work. College Scorecard shows what graduates of each program at each school earn.

Before signing for loans

The major matters too

Earnings vary more by field of study than by school for many programs. Look up the specific program on College Scorecard, not only the college.

Continue reading

College Financial Aid

The FAFSA, the Student Aid Index and merit aid.

Read the Guide →

Sending a Kid to College

Beyond the application, the financial conversations.

Read the Guide →

Finding a Career Direction

What fits, before choosing a path.

Read the Guide →
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The Launch Kit

The Launch Kit has a College decisions page for comparing offers side by side, plus worksheets for financial aid and who pays for what.

Download the Launch Kit (PDF)

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