Sometimes you add up all your , , and aid, hold it up against a school's price, and there's still a gap. That leftover gap has a name: . It's the part of the bill your aid doesn't reach, and the part you have to figure out how to cover. (If you haven't yet sorted your award letter into and loans, do that first; the gap only means something once the letter is decoded.)

The simple math behind it

Unmet need is easier than it sounds. Take the , the school's full yearly price, and subtract every bit of aid you're getting. Whatever's left is your unmet need.

Picture a school that costs $25,000 a year. If your grants, scholarships, and other aid add up to $18,000, your unmet need is $7,000. That $7,000 is the real question mark you have to answer for each year you attend.

Why it matters so much

The unmet need is what's left for you to cover with savings, a job, family help, or borrowing. A school with a higher can actually leave you with a smaller gap if it gives generous gift aid. So when you compare schools, compare their unmet need, not their advertised price.

A large unmet need every year is a warning light. Multiply that yearly gap by four and ask honestly how you'd cover it. A cheaper-looking school with a smaller gap can leave you far better off.

Ways to shrink the gap

A gap isn't the end of the story. Before you assume you have to borrow the whole thing, try these:

  • Keep applying for scholarships; even small ones the gap down.
  • Ask the financial aid office to reconsider your offer, especially if your finances changed.
  • Look at or a part-time job to cover part of it as you go.
  • Compare schools by their gap, and weigh a more affordable option.
Tip
If your family's income dropped after you filed the , ask the school about a '' review. A counselor there can sometimes adjust your aid based on what's true now, not last year.

When borrowing is what's left

If you've shrunk the gap as much as you can and still need to borrow, that can be a reasonable choice, as long as you go in with your eyes open. Borrowing a little for a degree you'll finish is very different from borrowing a lot with no plan.

Before you sign for anything, read Student Loans, Before You Sign. A few minutes now can save you years of regret.