Award letters are crucial for understanding the financial aspects of attending a particular school.
They help clarify the cost of attendance, which might have been difficult to ascertain through other means like school rankings or admissions conversations.
Five Key Points About Award Letters
Misleading Name
"Award letter" suggests a gift, but can include loans (repayable) and grants (non-repayable).
Variable Timing
Schools send award letters at different times after FAFSA is listed and acceptance is confirmed.
Some schools may send letters before acceptance.
Format Variability
No standard format for award letters; they vary between schools.
Multiple schools selected on FAFSA will result in multiple, differing letters.
Consistent Terminology
Cost of Attendance (COA): Includes tuition, fees, room, board, books, supplies, and transportation.
Expected Family Contribution (EFC): Based on FAFSA income and asset info.
Enrollment Status: Full-time, three-quarter time, half-time, or less can affect aid.
Acceptance of Aid
Not all aid must be accepted. Accept grants and scholarships as they don’t need repayment.
Letters usually guide on accepting or denying loans.
Comparing Financial Aid Packages
Scholarships
Listed in award letters; based on merit such as academics, athletics, or arts.
Do not need to be repaid.
Grants
Similar to scholarships, grants are non-repayable and often need-based.
Sources include schools, states, and the Department of Education.
Federal Work-Study
Money earned from part-time jobs during school; doesn’t need repayment.
Jobs could be on or off campus, coordinated through the school.
Determining Funding Gap
Calculate funding gap by subtracting grants and scholarships from COA.
Cover the gap with family contributions, savings, additional work-study income, or student loans.
Next Steps
Upcoming discussions on student loan options and smart borrowing for education.