The first step to reading financial aid award letters is to understand the elements they include. Here are the main parts to look for:. This can vary greatly, as depicted in this sample scenario:.
University B is clearly more expensive than University A, leaving the student with greater financial need. Once the details surrounding the amount of financial aid are received, you can compare offers from different schools by using a financial aid calculator.
To fully understand the financial aid package being offered by a school, students must look beyond the basics contained in the award letter. There are significant costs that can be easily overlooked. Make sure that all potential costs are included like: housing, food, transportation, books, supplies, additional fees, and other living expenses. For example, will an injury void an athletic scholarship? Financial aid award offer letters may include federal student loans and the related terms.
You may choose to accept or decline these loans. Considering the cost of attendance, remember that there are many other costs not outlined in your financial aid award letter. There are many costs to consider that go beyond tuition like, books, travel, clubs, off-campus housing, and dining. Many scholarships are available year-round. There are so many benefits of applying for scholarships year-round , so keep searching and applying to scholarships even during the spring.
Every little bit helps. Many students need additional money beyond federal grants, scholarships, and loans. You may consider cost-cutting tactics like living at home or attending community college, or you can take out a private student loan. It's used by the school to calculate how much student aid the applicant is eligible to receive.
Your financial aid award letters may contain different types of financial aid offers. While each school may have its own nomenclature, there are four general types of aid:.
Schools typically send out financial aid award letters close to when they send their acceptance letters. For many students, financial aid award letters help to narrow down college choices.
To find out which school will be the most affordable, you can compare costs with a bit of number crunching. To do so, follow these steps for each award package that you receive:. Whenever possible, take advantage of the free aid and work-study programs first, then take out loans only if needed. If you do need a loan to help cover costs, keep in mind that federal student loans are generally more flexible and less expensive than private loans.
Situations in which an appeal letter may be appropriate include:. Start by contacting the school to inquire about its aid award appeals process. No matter what that process is, follow the directions, be specific, and always be nice. It depends on the type of aid you received.
If the financial aid was in the form of a loan, you will need to repay the money. Any grants, scholarships or money awarded through a work-study program do not have to be repaid. Get to know the jargon and language used in offer letters.
A report from New America and uAspire found unique terms for unsubsidized loans. Two-dozen terms didn't even use the word "loan" in the letter. The report, which analyzed letters, found that more than a third did not contain any cost information about the financial aid offer. Probably not. Generally, more debt does not increase the amount of financial aid you'll be awarded, according to Mark Kantrowitz, a financial aid expert.
In fact, it could even lower your eligibility for need-based financial aid. Federal Student Aid, U. Department of Education. College Board. Sallie Mae. Student Loans. Saving For College. Your Privacy Rights. To change or withdraw your consent choices for Investopedia. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page.
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