Misc

How to Study in the US Without Breaking The Bank

POSTED ON 03/07/2025 BY Ramya Modukuri and Namita Mehta

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Originally written for LinkedIn

Pursuing a degree in the US is expensive and requires a significant financial investment. The overall Cost of Attendance (CoA), including tuition fees and additional expenses, can exceed $90,000 annually. Here are the average costs at various universities, with the boxed segments showing the most relevant options for students applying from India):

Source – CollegeBoard’s Trends in Student Pricing and Student Aid 2024

Understanding financial aid

Simply put, financial aid helps students manage college expenses. It is classified across factors:

Funding Sources: Institutional aid provided by universities or Federal aid administered by state and central governments.
Eligibility criteria: Need-based aid determined by a family’s income and assets, or Merit-based aid awarded for academic and other achievements.

(*) – Unsubsidised Loans are an exception; see details in the next section

Types of financial aid

1) Federal student aid

What is it?

Funding provided by state and central governments.
Only available to US citizens and Permanent Residents (including those studying in India).
Mostly need-based (see Student Loans below).
Also available in some institutions /countries outside the US. Note that in such cases, federal financial aid is only in the form of loans
Applications must be submitted using the Free Application for Federal Student Aid (FAFSA) form.

Types of federal student aid:

Grants	Student Loans	Work-study
– Repayment not needed- Average of ~$4,000- $7,000 in 2023-24.- For students with significant financial need. Types: – Pell Grants (most generous) – Federal Supplemental Educational Opportunity (FSEOG) grants- Teacher Education Assistance for College and Higher Education (TEACH) grants	– Repayment needed but not during college years- They offer fixed interest rates that are lower than private loans.- They have income-driven repayment plans Types:– Direct Subsidised Loans: Eligible undergraduate students with demonstrated need. Up to $5,500 @ 6.53 percent. – Direct Unsubsidised Loans: Eligible undergraduate, graduate, and professional students, but eligibility is not based on financial need. Up to $20,500 @ 8.08 percent.– Direct PLUS Loans: Parents of dependent undergraduate students. Eligibility is not based on financial need. Interest rates of 9.08 percent	– Provides part-time employment while you are enrolled in school- Administered by schools participating in the Federal Work-Study Program. – Students must check with their school’s financial aid office to determine if it participates.

How is it calculated?

Cost of Attendance (COA) – The amount a student will pay to attend university. Most universities estimate the COA, which includes tuition fees, living costs, books, supplies, transportation, etc.
Student Aid Index (SAI) – Calculated based on a family’s total financial resources, deducting necessary annual living expenses and allocating a portion of the remaining funds toward college costs. This is determined using the information provided in the FAFSA form.

How and when to apply?

Complete and submit the free Federal Student Aid (FAFSA) form as early as possible. While the official deadline for the 2026 entry cycle is June 30, 2026, submitting the form early can help secure an aid package in time to make informed financial decisions. The FAFSA application typically opens on October 1.

Apply HERE or visit https://studentaid.gov/ for more information.

2) Institutional financial aid

What is it?

Financial assistance provided directly by universities to students.
Universities’ endowments, which can run into billions of dollars, fund their aid offerings.
Can be need-based or merit-based.
Available to international students as well, though policies can vary.

Types of institutional aid:

How and when to apply

Complete the CSS Profile form to apply for need-based institutional aid. Apply HERE.
The deadline for submitting the CSS Profile varies by university, so check each institution’s timeline.
Just like FAFSA, submitting the form early ensures that students receive their aid package alongside their admission offer, allowing for a well-informed and timely enrollment decision.

Factoring financial aid into the college search process

1) Understand financial aid policies

Check financial aid policies: All US university websites have a “financial aid and affordability” section. Check their policy for international students. Some may outright mention that they don’t offer any financial aid for international students.

Review evaluation models for financial aid: Every US university has a different way of evaluating applications when students ask for need-based financial aid. Two of the most common models are Need-Blind and Need-Aware. Here’s the difference:

Need-Blind: An applicant’s request for financial aid and the amount needed do not influence the evaluation process or the decision to offer admission.

Need Aware: The amount of financial aid an applicant requires is factored into the evaluation process and may affect the admission decision.

Most US universities that provide financial aid to international students are need-aware. Some even meet 100 percent of the financial requirement.

2) Consider the percentage of financial need met:

It is important to know whether your university covers your financial requirements. Some universities cover 100 percent of the demonstrated need for all students, including international students (not 100 percent of tuition fees). Others cover 100 percent of the needs of US citizens and permanent residents. See the list above for those that meet 100 percent of demonstrated international student needs.

3) Determine how much financial aid a student will receive and what you may receive.

Start with policies – we can’t iterate this enough!
It is nearly impossible to get an accurate estimate for international students.
US citizens studying in India whose parents file taxes in the US can use Net Price Calculators on university websites to get a ballpark estimate.
Use this tool from BigJConsulting to understand the past average aid and percentage of students receiving financial assistance. This information is based on the CDS survey all universities fill out annually. Feel free to geek out and download the raw data!
iPEDS is another excellent resource similar to CDS and is a US government initiative.

Parting advice

In addition to popular universities offering generous financial aid (albeit very selectively), consider:

Smaller regional colleges, which are eager to attract talented international students to enhance their profile.
Programmes such as Next Genius, which partner with smaller liberal arts colleges to provide substantial scholarships.
Those with strong co-op programs that can help you offset costs by integrating internships into the program itself.
Institutions with a lower overall cost of attendance. For example, a university might offer a 100 percent tuition scholarship but could be located in an expensive city with a high cost of living. In that case, a university offering 50 percent tuition coverage in an area with a very low cost of living may be more viable.