True Cost
The true cost of a college education can only be considered once a student has taken into account their financial aid. For example, consider the following two universities:

College A: $10,000 per year
College B: $15,000 per year

By examining the sticker price alone, one would conclude that College B is more expensive. However, consider how financial aid can affect the overall out of pocket expense of a student:

As the above example illustrates, the total out-of-pocket expense is probably a larger consideration than the cost of the entire program. In this case, the out-of-pocket expense ends up being the same for each school.

Cost of Attendance
Any school that offers federal financial aid in the form of grants, scholarships, or work-study is required to complete an average cost of attendance. Each student's cost of attendance includes:

• Tuition
• Books
• Room and board
• Travel expenses
• Other miscellaneous expenses

Although schools may figure each student's cost of attendance individually, most provide an average cost of attendance that is used in determining how much federal and state aid for which a student qualifies.