Which of the following is not subtracted from the Cost of Attendance when calculating net cost?

• A. Grants
• B. Scholarships
• C. Loans
• D. Work-Study

Answer: (C)

Net cost is the amount you actually pay after subtracting certain types of financial aid from the total cost of attendance. Grants and scholarships are gift aid that lowers what you owe upfront. Work-study provides funds you can use toward costs through earnings, which also reduces the net amount you need to pay. Loans, however, are borrowed funds that you must repay later, so they do not reduce the net cost calculation in the moment.

For example, if the cost of attendance is $20,000 and you receive $5,000 in grants, $3,000 in scholarships, and $2,000 from work-study, the net cost would be $20,000 − ($5,000 + $3,000 + $2,000) = $10,000. A loan of $6,000 doesn’t change that net cost because it’s borrowed money you’ll repay in the future.