Choosing where your student will spend the next two or four years is an exciting milestone. As the new year begins, it often brings a clearer (and more urgent) view of what college may actually cost. Tuition bills, housing deposits, and financial aid details can make the decision feel a lot more “real,” fast.
It’s also completely normal to feel pulled between a dream school and a smart financial choice. The good news: you can compare options confidently, without relying on “we’ll figure it out later.”
In this email, we’re sharing practical steps to help you find the balance plus red flags to watch for and ways Red Kite’s tools can support you in making a confident, informed decision.
How to Compare Financial Aid Packages Step-by-Step
Financial aid offers can be hard to compare because schools present them differently. Use this simple framework to evaluate each one clearly.
Step 1: Separate free money from borrowed money.
- Grants & scholarships: money you don’t repay
- Student loans (subsidized/unsubsidized): money your student repays
- Parent PLUS loans: money you repay (Starting July 1, 2026 will be capped at $20,000/year & $65,000 lifetime/student)
Red Kite Pro Tip: Focus on what’s truly free (grants and scholarships) and what must be repaid (loans), rather than the total award amount.
Step 2: Find the real yearly out-of-pocket cost.
Calculate:
Cost of Attendance – (Grants + Scholarships) = Estimated annual cost
For this step, do not include loans—loans are a payment plan, not a discount.
Step 3: Project the full 4-year cost (with likely increases).
Many schools raise costs over time. A package that looks manageable this year may grow significantly by graduation.
Step 4: Compare your options side-by-side in Red Kite.
In your Red Kite dashboard, you can compare on- and off-campus living costs, in-state vs. out-of-state tuition, and the average net price for each college you’re considering. This turns a confusing comparison into a clear, side-by-side view.
Red Flags That a School May Not Be a Strong Financial Fit
Here are a few early warning signs families sometimes miss:
- The package relies heavily on loans to cover “need.”
If a large portion of the offer is student loans, or includes significant Parent PLUS loans, take a closer look at repayment expectations. - A sizable gap remains after grants and scholarships.
If your family is still responsible for thousands out of pocket each year, the plan may be difficult to sustain long-term. - Scholarships aren’t renewable or come with strict requirements.
One-year awards or scholarships tied to high GPA thresholds can disappear, raising costs in future years. - Limited transparency about future cost increases.
Schools that are unclear about typical tuition and fee increases may be more likely to see higher annual jumps.
How to Talk to Your Student About Realistic Options (Without Discouraging Them)
These conversations can be tough. Here are a few ways to keep it supportive and productive:
Start with empathy and a plan.
“I know you love this school and can picture yourself there. Let’s look at what it would take to make it work.”
Use clear numbers, not emotions.
Walking through costs together (especially with Red Kite’s visuals) keeps the conversation neutral and fact-based.
Frame financial fit as future freedom.
Managing debt now can protect flexibility later, whether that’s studying abroad, moving out, or choosing a career based on passion, not payments.
Explore pathways that keep options open.
Consider starting at a lower-cost school and transferring, applying for additional scholarships through Red Kite, or asking the college about an appeal.
Final Thoughts
You want your student to dream big and you want them to graduate with a plan that sets them up for long-term success. With clear comparisons, open conversations, and support from Red Kite’s tools and resource guides, your family can choose a school that fits both their goals and their financial future.
Discover our step-by-step Parent’s Guide to Paying for College.
