Assessing financial readiness for college
This calculator is a tool to allow you to assess your financial situation for college as it relates to Borrowed Funds. It is not intended for any purpose other than an assessment.
Enter whole $ amounts without commas. Two ratios are derived from your inputs.
The Ratio of Borrowed Funds to the Net Cost of Attendance shows the percentage of your payments to college that are borrowed. A ratio below 30% shows that you are not heavily dependent upon borrowed sources for college costs. A ratio between 30% and 50% is indicative of a reliance upon borrowed funds and that could be problematic in future years. A ratio above 50% indicates a heavy reliance upon borrowed funds and that could be problematic both now and in the future.
The Ratio of Borrowed Funds to Contributions, Grants and Scholarships compares the Borrowed Funds to Funds that carry no interest cost. A ratio above 50% can indicate too heavy a reliance upon Borrowed Funds. College costs, Grants and Scholarships can change with each year. You need to assess this annually.
Utilize the ratios to see where you fall on both graphs. These are indicators to provide an awareness of your financial position relative to the Net Cost of Attendance and reliance upon Borrowed Funds for meeting the NCOA. These indicators are designed to provide awareness of potential issues both now and through the college years.
Obviously each individual's financial position is different and no one ratio or assessment can provide perfect solutions. Use trusted advisors and talk to the Financial Aid department at your university with any concerns.
We are planning to provide a more sophisticated planning tool in the near future. Comments and suggestions are welcome.
Enter the Full Cost of College$
Enter the Total for Grants and Scholarships$
Enter the Student Contribution$
Enter the Parent Contribution$
Enter the Total for all Borrowed Funds$