How to Read Your Financial Aid Award Letter
If you are preparing to go to college, you have a lot of choices to make. How far from home do you want to be? What do you want to study? Will you be able to afford it? Luckily, that last question is a little easier to answer, and it is made clear by your financial aid award letters. You will receive an award letter from each institution that accepts you. Each letter will work a little different, but will contain essentially the same information. By the time you’ve read a couple of them, they will be very easy to understand. We’ve recorded the basics in the infographic below, to help you comprehend what’s there.
How to Read Your Financial Aid Award Letter
Every school will list a Cost of Attendance (COA). This includes your basic tuition, room and board, and your cost of supplies (books, materials). The total is the full expense of going to school at that specific institution. But that’s not the amount that is expected to come out of your pocket. When you complete your FAFSA, they determine how much money your family is expected to contribute to the cost of your education. The difference between this figure and the total Cost of Attendance is made up by scholarships, other financial aid, and loans.
Every school will list what scholarships, grants, and other financial aid you can expect to receive. The more the merrier, because this is less money that you have to pay or pay back. The money that is left over, that is not covered by your out-of-pocket expenses is to be covered by student loans. Student loans can come from the federal government, subsidized, or from private lenders. Sometimes, lenders can provide loans at lower rates, so it’s best to check both, and your financial aid letter will probably provide suggested lenders or even specific loan amounts/rates. By now you should understand how to read any financial aid letter that you may receive.
Financial Aid Award Letter Infographic
Check out this nifty financial aid award letter infographic provided by Citizens Bank – it will help better explain how to read your financial aid award letter:
