Question

Justin plans to attend a four-year college. He has estimated the costs per year.

Tuition = $2,900

Other educational expenses = $280

Housing and living expenses = $4,100

Justin’s counselor estimates he will receive $3,500 a year in grants. He also will be eligible for a work-study program that pays $2,800 per year. Justin also plans to save enough money to contribute $500 each year.

Justin’s plan doesn’t cover his costs completely. What are his options for covering the rest of his costs? Select all that apply.
He could try to save more money.
He could get a student loan for the extra amount he needs.
He could apply for a scholarship.
He could ask his friends to loan him money.
He could ask his family to contribute.

Answer 1

First find the shortfall so you see how much he still needs:

Costs per year = 2,900 + 280 + 4,100 = 7,280
Available per year = 3,500 (grants) + 2,800 (work‑study) + 500 (savings) = 6,800
Shortfall = 7,280 − 6,800 = 480 per year (or 1,920 over 4 years).

Which options apply?
- He could try to save more money. — Yes. Increasing savings reduces the shortfall.
- He could get a student loan for the extra amount he needs. — Yes. Loans are a common way to cover remaining costs.
- He could apply for a scholarship. — Yes. Scholarships (if awarded) reduce costs without repayment.
- He could ask his friends to loan him money. — Generally not a recommended or reliable option; technically possible but impractical and risky, so it’s not a good formal option.
- He could ask his family to contribute. — Yes. Family help is a common way to cover remaining costs.

So select: try to save more, get a student loan, apply for a scholarship, and ask his family to contribute.