How to Understand Your College Financial Aid Award Letter
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Understanding Your College Financial Aid Award Letter myredkite.com /blog/understanding-your-college-financial-aid-award-letter/ Evaluating and comparing college costs can be confusing. Here are things to keep in mind while reviewing your College Financial Aid Award Letter. Congratulations! You just got accepted into a few great colleges and the Financial Aid Award Letters are starting to roll in. You know what this means? It’s decision time. A College Financial Aid Award Letter outlines the annual amount of financial aid you can receive from federal, state, private and institutional sources. The aid outlined in your Financial Aid Award Letter is often referred to as your “financial aid package.” Evaluating Your Financial Aid Award Letter You don’t have to be a rocket scientist to figure out your Financial Aid Package. However, there is no standard format for College Financial Aid Award Letters, which means each letter may look slightly different.
Transcript of How to Understand Your College Financial Aid Award Letter
Understanding Your College Financial Aid Award Lettermyredkite.com /blog/understanding-your-college-financial-aid-award-letter/
Evaluating and comparing college costs can be confusing. Here are things to keepin mind while reviewing your College Financial Aid Award Letter.
Congratulations! You just got accepted into a few great colleges and the Financial Aid AwardLetters are starting to roll in. You know what this means? It’s decision time.
A College Financial Aid Award Letter outlines the annual amount of financial aid you can receivefrom federal, state, private and institutional sources. The aid outlined in your Financial Aid AwardLetter is often referred to as your “financial aid package.”
Evaluating Your Financial Aid Award Letter
You don’t have to be a rocket scientist to figure out your Financial Aid Package. However, there isno standard format for College Financial Aid Award Letters, which means each letter may lookslightly different.
Here are some things to keep in mind while reviewing your aid that could save you time andmoney.
First, there are two main types of aid: Need-based Aid and Non Need-based Aid. Both areimpacted by your family income.
Need-based Aid (sometimes referred to as Gift Aid): Consists of private scholarships andstate and federal grants that don’t have to be repaid in most cases.
Non Need-based Aid: Is aid that is not determined by your income. It includes unsubsidizedloans that must be repaid or work-study funds that must be earned.
Some Financial Aid Award Letters will separate these types of aid, but not always. It will be up toyou to decide which type of aid best suits your needs.
The main sources of aid you may see on your Financial Aid Award Letter include:
Grants
Scholarships
Federal Perkins Loans
Federal Subsidized Loans
Federal Unsubsidized Loans
Private Loans
Work Study (Non Need-based aid)
In most cases there is a deadline for accepting or declining your aid offer. Additionally, you may berequested to provide additional documents to finalize your award. Directions will be provided, but ifyou have any questions, contact your college financial aid office.
Comparing Your Costs
Here are a few things to keep in mind when comparing colleges and determining your financialneeds:
Your Financial Aid Awards are separated by semester and totaled for the academic year.
Your Cost of Attendance (COA) may not be listed on your Award Letter. You can usuallyfind the COA on the college’s website on the financial aid page. Make sure to note what iscovered for COA for each school.
Your Estimated Family Contribution (EFC) is the amount you (and possibly your parents)are expected to contribute towards your Cost of Attendance. The EFC is the amountdetermined by the FAFSA information you submitted and will remain the same regardless ofthe school you choose.
If you need additional money for college to cover the unmet need, be sure to check outavailable scholarships or private loans.
