Review your award letter and other resources. Check out this section to note 5 items to know about award letters. What to look for on your award letter.
Award letters are vitally important for you and your school. When you were reviewing schools, you may have researched tuition prices by looking at school rankings, talking to admissions staff people, and visiting websites that store school data. However, it may have been difficult to calculate an accurate cost of attendance.
With the award letter, you finally have the information you were looking for. Don't worry if your award letter doesn't translate as clearly as you hoped, or you're not sure exactly what it all means. We'll explain the ins and outs of a common award letter. Before we dive into the types of aid offered, it's important to note five things. One, let's start with the name.
Award letter implies that you've been given a gift, but this letter may include loans that have to be paid back, and grants that truly are gifts and do not need to be paid back. Two, timing will differ. If you've listed a school on your FAFSA and you've been accepted, They should send you an award letter.
It could arrive at any time before classes start. Contact your school if you want more information. Some schools will send you an award letter even if you haven't been accepted yet.
3. There is no set rule for how schools write their award letter. If you've selected more than one school on your FAFSA, you'll receive more than one letter, and they might look very different. 4. Some terminology is consistent. Cost of attendance is an estimate of your tuition and fees, room and board, books, supplies, and transportation.
Expected family contribution is based on the income and asset information you listed on the FAFSA. Enrollment status will detail if you are full-time, three-quarter time, half-time, or less than half-time. Your aid could change based on your status.
Five. You do not need to accept all the aid listed in the award letter. Accepting all your grants and scholarships is wise, as this money doesn't need to be paid back. Many award letters offer you the next steps to accept your aid package.
including directions how to accept or deny loans. When it comes to comparing financial aid packages, you want to first look for scholarships. Some schools will have scholarships to offer you, and they'll be listed in your award letter.
They could be for a number of reasons. Academic, artistic, leadership, athletic, or other achievements could earn you merit-based aid. It's great! You don't need to pay back this type of aid. Then you have grants.
Like scholarships, grants do not need to be repaid. Often, grants are need-based. and are offered to you based on the information submitted on your FAFSA.
Types of grants could come from your school, your state, and the Department of Education. Your award letter may list a federal work-study award. This money is earned from part-time jobs while attending school and does not have to be repaid. Jobs can be on or off campus and are coordinated through your school.
At this point, you can determine your funding gap. Subtract your grants and scholarships from your cost of attendance and you'll find your funding gap. You can cover this gap with family contributions, your personal savings, income from additional work-study jobs, or other part-time employment, and finally with student loans.
Stay tuned for our next video where we'll discuss student loan options and how to make smart choices when borrowing money for your education.