Financial Aid Award Letter

Goals for the evening

• 1. Help you read your financial aid award letters.

• 2. Assist you in understanding the aid being offered.

• 3. Help you determine which aid to accept and which aid to potentially decline.

Key TermsFinancial Aid Award Letter: A letter received, via mail or email, from the college(s) to which the student applied, typically in early to mid-April. This letter will spell out the details of the financial aid package.

Financial Aid Package: A collection of different types of aid from multiple sources (federal, state, and institutional1). It is intended to help you fill the gap between your ability to pay (your expected family

contribution or EFC) and college costs (the cost of attendance or COA). It is based on your financial need, the difference between COA and EFC.

Financial Aid Refresher

Grants

• Aid that does not need to be repaid • From school or government

Scholarships

• Aid does not need to be repaid• Various criteria • From school or organizations

Works Study

• Campus based program• Awarded by college• Not guarantee

Loans

• Advance of funds guaranteed by a signed promissory note• Available to students and parents• Various interest rates and repayment plans

Financial Aid Sources

Government• Federal / State

Institutional• Scholarship, Grants

Organization• Particular groups

Private Aid• Independent Scholarships or

Loans

Why is it important to compare financial aid packages?

KNOWLEDGE• Understand the different type of aids, how much borrowing and long

term consequences

FINANCIAL PLANNING• Consider how much debt one is willing to have• What income one will have after they graduate (www.payscale.com)• Impact on future plans

BARGAINING TOOL• Don’t be afraid to ask one school for more money• Compare aids and flexibility of the packages

MAKING A DECISION• Make a decision when you have all the information• Most know your rights, facts and investing options

Appeal letters

• You can ask for more money or appeal a financial aid award letter – BUT

• Be able to support your request with solid reasons

• If you are uncertain whether your situation may be considered a special circumstance – ASK!

How to Evaluate Financial Aid Award Letters

How much free

money

What is the total

cost

How will the student pay

(loans, out of pocket, work)

Options for paying the

money owed

Forms, Appeal,

Questions

What are the next steps…

Questions to ask

• How many hours a week a student would have to work to earn a work study grant?

• What does the student have to do to renew each scholarship and grants each year?

• What are the terms, conditions and monthly payments of the loans?

• Can the student/parent decline the awarded loans?

• How much will it cost to graduate from this college?

Trying to estimate true cost for degree?• Visit www.collegecost.ed.gov and check

their score card• Review retention and graduation rates• Calculate next year’s true Cost of

Attendance subtract free money and multiple by four or number most students graduate in with about 10% probably inflation

Question to ask..Does the award letter state the school’s cost of attendance (COA)?

If so, does it include ALL projected costs (i.e., tuition, fees, room, board, books,

transportation, and personal expenses)? REQUIREMENTS

Are all scholarships renewable? o Do you have to maintain a certain G.P.A.? o Can you switch majors and keep the scholarship?

FAMILY What is your expected family contribution (EFC)? Is there any unmet need?

SAMPLE AWARD LETTERS

WEBSITE RESOURCES

Award Letter Comparison Tool • http://www.finaid.org/calculators/awardletter.phtml

Advanced Award Letter Comparison Tool • http://www.finaid.org/calculators/awardletteradvanced.phtml

Compare Aid Awards Calculator http://apps.collegeboard.com/fincalc/ep/step6-1.jsp

Financial Aid Award Letter.com http://www.financialaidletter.com

Student Loan Repayment Calculator http://www.mappingyourfuture.org/paying/standardcalculator.htm

If I cannot afford it then…

• Reduce Costs– Live at home if possible– Sharing housing with other students– Work part time– Avoid bringing cars to school– Take transferrable courses

• Change your plan– Consider a less expensive school

• Find more aid– Appeal– Look for Scholarships

Your going to college

Your student

& their Future

Strong Foundation

Family Support

Networking

Utilizing all resources