Financial Aid Award Letter

When applying for college, you'll check the mail daily looking for two different letters: acceptance to college and a financial aid award letter. In some way, the second letter is more important than the first. After all, if you can't afford to go to school, it doesn't matter where you have been accepted.

In addition, the financial aid award letter will help you narrow down your choices of where you're accepted. Your first choice school may have nothing to do with location or professors, but which school gave the best financial aid award package. If are able to supplement financial aid with a private loan--as opposed to federal or from the school--this may also affect the decision about where you end up going to school.

A letter may include an entire financial aid package--a combination of financial aid opportunities that are offered by the school. This may include both a federal loan as well as a work-study grant. The two combined may be significantly more than an aid package for a different school. One school may award one type of financial aid, but not another. The financial aid award letter, then, is a concise way of comparing schools side by side.

How to Read the Financial Aid Award Letter

To add another bit of confusion: just because a college offers a higher financial aid package, this does not necessarily mean that it is a better package. The package must be measured against the Cost of Attendance (COA). If the COA is much higher, it may offset what is saved by a high financial aid package. The financial aid award letter will include the COA to help you determine what exactly you'll be saving. The COA will include tuition, room and board, and supplies. Other issues, such as transportation, may not be included and may change according the location of the school.

Does the loan cover the full amount of the above expenses, or is there an unmet need? If your needs are unmet, you may be able to contact the financial aid office and make an appeal. If your needs are still not addressed you can either a) Apply for a supplemental loan or b) Choose a different institution. Generally, an award letter will include all different types of loan opportunities: Pell grant, work study program, external aid, etc.

Renewal is a very important facet of a financial aid package. Can the financial aid package be renewed? Do you need to reapply? Will a scholarship be awarded for a full four years or only one year at a time? If you are on a work-study program, determine how many hours a week you will need to work as well as the type of work. Answering these questions will help you make an informed decision about which college offers the most advantageous financial aid program.

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