Final answer:
To determine which college is more affordable, you should compare the net cost after subtracting grants and scholarships from the total cost of attendance. This approach gives a clearer picture of the funds that do not need to be repaid and the actual cost you will incur.
Step-by-step explanation:
When comparing financial aid letters from two higher education institutions to determine which one is more affordable, the correct approach is to compare the net cost after subtracting grants and scholarships. This means the best choice would be option D) Compare the net cost after subtracting grants and scholarships. Don't just look at the total amount of financial aid offered, as it may include loans, which have to be repaid. Similarly, lower tuition costs do not automatically make a college more affordable if it offers fewer scholarships and grants. To make an informed decision, evaluate the entire financial aid package, considering grants, loans, work-study, and other forms of aid and how they impact the final cost of attendance.