With origins dating back to 1766, Rutgers University has been educating students since before the U.S. was established.
Back then, its cost of attendance was surely lower than what you see today: $34,138 for in-state students and $50,848 for out-of-state students for the 2018-19 academic year.
Given these high costs, it’s crucial that you take the time to understand your Rutgers award letter before you enroll.
If you’ve got your sights set on this historic public college, here’s what you need to know about deciphering your Rutgers financial aid award letter.
1. You’ll see direct and indirect costs, but they’re only estimates
Once you’re accepted to Rutgers, you’ll get an email from its financial aid office when your Rutgers award letter is ready to be viewed online. After signing into your account, you’ll gain access to your Rutgers financial aid award.
You’ll first notice an estimate for direct and indirect costs. Direct costs include tuition, fees, housing, and dining, and you’ll pay them directly to Rutgers. But your actual direct costs might differ from the estimate you see here. For instance, you might forgo on-campus housing and commute from home, resulting in a lower housing bill.
Along similar lines, your indirect costs, which include books, supplies, and travel expenses, could be more or less than Rutgers’ estimate, depending on your budget. Although the totals on your Rutgers award letter can be a useful guide, you should still take time to add up your own costs based on your situation.
2. The estimated total cost of attendance is just the sticker price
After revealing your direct and indirect costs, your Rutgers financial aid award letter will give you a total estimated cost of attendance. Before you get sticker shock, remember that this total hasn’t yet taken your financial aid into account. Any scholarships or grants could significantly lower this total cost of attendance.
The rest of your letter will break down the gift aid and student loan offers that can lower this total cost of attendance into a more reasonable range.
3. Your aid could include scholarships and grants
Once you’ve got a sense of total costs, it’s time to look closer at your financial aid award. First, you might see gift aid in the form of scholarships or grants. This aid could be merit-based or need-based, and it might come from the federal, state, or institutional level.
The Department of Education, for instance, awards the Pell Grant and the Federal Supplemental Educational Opportunity Grant to students with financial need. In-state students might also receive state grants, such as the New Jersey Tuition Aid Grant for up to $10,730 a year or NJ Stars II for up to $2,500 a year.
Since you don’t have to pay back gift aid, it’s essentially free money to help you pay for college. That said, some scholarships last only a year, meaning your costs the next year could go up. Make sure to read the details of each award to see whether it’s renewable.
The gift aid on your Rutgers award letter is provided based on the information you gave on the FAFSA and your college application. For even more help paying for college, you can apply for scholarships from independent organizations. Use scholarship search engines to find the right opportunities.
4. You’ll also see offers for federal student loans
After subtracting your gift aid from your total cost of attendance, you’ll likely still have costs left. That’s where student loans can come in handy. Based on your FAFSA, Rutgers will offer Direct Subsidized Loans, Direct Unsubsidized Loans, or both.
Both of these loans have the same interest rate of 5.05% for undergraduates, but subsidized loans have more attractive terms since they don’t start accruing interest while you’re in school. Subsidized loans go to students with financial need, whereas any student attending an eligible school can take out unsubsidized loans, regardless of their financial circumstances.
Note that the student loans on your Rutgers financial aid award letter are just offers. You’re not obligated to take out federal student loans. If you do choose to borrow, make sure you understand their terms and conditions.
Learn about your repayment options, and use our student loan payment calculator to estimate your future monthly bills. By doing your due diligence before you borrow, you can avoid taking on too much debt.
5. You might see a work-study offer to help lower costs
If you have financial aid, you might see another offer on your Rutgers award letter: work-study. The Federal Work-Study Program guarantees you a part-time job on campus during the school year.
You can use your earnings for indirect costs, such as books and miscellaneous expenses. Even if you don’t qualify for work-study, you might get a part-time job as a college student to make extra cash.
If your award letter offers work-study, make sure to factor in this income as you prepare your budget.
6. You might still have a gap in funding
After reviewing your financial aid award, you can estimate your remaining expenses by subtracting any gift aid you’ve received and student loans you plan to accept from your total cost of attendance.
If you still have a gap in funding, you could consider borrowing additional student loans. Your parents, for instance, could borrow federal Direct PLUS Loans, which come with a 7.60% interest rate and 4.264% origination fee.
Another option is to borrow private student loans from a bank, credit union, or online lender. Since private lenders have underwriting requirements, you’ll likely have to apply with a cosigner to qualify.
Of course, the decision to borrow debt shouldn’t be taken lightly, and you should make sure you’re prepared to handle repayment. You could also try other avenues first, such as working part time and applying for scholarships.
Whatever you can do to save money now could mean less student debt in the future.
Take time to decipher your Rutgers award letter
Financial aid can be confusing, so take your time reading over your Rutgers award letter. Be cautious when taking out student loans so that you don’t find yourself in over your head.
If you decide to borrow, make sure you understand how your loans work. By doing your due diligence now, student loans can be a useful strategy for paying for Rutgers University rather than a burden.
Above rates & terms are accurate as of September 2018.
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1 Important Disclosures for SoFi.
2 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.50% APR (with Auto Pay) to 7.89% APR (with Auto Pay). Variable rate loan rates range from 2.49% APR (with Auto Pay) to 7.27% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of April 17, 2019, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 04/17/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on our student loan refinance product.
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3 Important Disclosures for Laurel Road.
Laurel Road Disclosures
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the fixed rate will decrease by 0.25%, and will increase back up to the regular fixed interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
However, if the borrower chooses to make monthly payments automatically by electronic funds transfer (EFT) from a bank account, the variable rate will decrease by 0.25%, and will increase back up to the regular variable interest rate described in the preceding paragraph if the borrower stops making (or we stop accepting) monthly payments automatically by EFT from the designated borrower’s bank account.
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
4 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 2.48% effective April 10, 2019.
6 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
|2.49% – 7.27%1||Undergrad & Graduate|
|2.49% – 6.65%3||Undergrad & Graduate|
|2.49% – 7.41%4||Undergrad & Graduate|
|2.50% – 6.65%2||Undergrad & Graduate|
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|2.98% – 9.72%6||Undergrad & Graduate|