Costs at some colleges nearing $100,000 per year, but many families pay a lot less

The cost of attending college has skyrocketed, with some top universities now charging close to $100,000 per year.

However, the sticker price is not what many families actually pay.

Financial aid, including scholarships, grants, and loans, plays a significant role in lowering the net cost of college.

Around two-thirds of full-time students receive some form of aid, which can drastically reduce the amount they have to pay out of pocket.

Private schools often offer more generous financial aid packages than public universities.

For example, Washington University in St. Louis awards an average scholarship of over $65,000 per year, bringing the out-of-pocket cost down to around $26,000.

On average, families spend about $28,000 per year on college costs.

Parental income and savings cover almost half of these expenses, while grants and scholarships account for over a quarter.

Student loans typically make up the remainder.

To receive financial aid, students must complete the Free Application for Federal Student Aid (FAFSA).

This is the gateway to federal grants, loans, and work-study programs.

Despite the challenges with the new FAFSA system, experts emphasize the importance of completing it to access the majority of financial aid available.

Overall, while the sticker price of college may seem daunting, financial aid can significantly lower the cost for many families.

It is crucial to research financial aid options and complete the FAFSA to ensure that students have access to the resources they need to pursue higher education.