Understand Your Financial Award Letter

Many students are still trying to decide which college to attend, with the deposit deadline of May 1 fast approaching!  For many, one of the most important factors is the cost of college.  At this very moment, many families are evaluating the various financial aid offers they have received.  When you review a college’s financial aid offer, make sure you understand exactly what it means. 

Total Cost

Do you know what the total cost of attendance is?  Look closely at the figure listed on the financial aid letter.  Some schools only include tuition, room, and board, while others will also include other expenses such as books or lab fees.  However, there are additional costs that may not be reflected in the amount shown on the award letter, including personal expenses (such as toiletries, clothes, entertainment), transportation, parking, health insurance, fraternity/sorority fees, technology fees, recreation fees, club or other activity fees, orientation programs, and more. 

The Offer

When you evaluate the financial aid package itself, note how much is in the form of grants or scholarships and how much is in the form of loans.  Also be sure you understand what types of loans are included and what the terms are (when does repayment begin, how long is the repayment period, what is the interest rate).  Is work-study included as part of the package, and if so, will your student be able to work the number of hours necessary to receive the maximum work-study amount?

Other Financial Aid Considerations

If your student is receiving private scholarships, find out how that might affect the financial aid offer.  For example, some schools reduce grants by the amount of the private scholarship, while others will reduce the loan portion of the offer.  For some colleges, outside scholarships may have no effect on the financial aid package.

Also consider the fact that tuition and other education expenses are likely to go up each year.  In addition, the school may not offer the same financial aid package to your student after freshman year.  To determine whether a particular college or university typically reduces aid to upperclassmen, visit CollegeData.  Search for the school, and then compare the financial aid information for freshmen with the information for all undergraduates.

Don’t forget – you can always call the financial aid office to discuss your concerns. 

The Final Decision

Besides cost, there are other ways to make a college decision.  Compare graduation rates; you can find these at College Results Online.  Talk to students, and read reviews on Unigo and College Prowler.  Look at the list of majors/minors.  Does the school offer programs your student may be interested in?  How easy is it to switch between programs of study in the event your student changes his or her mind?  By examining these and other questions, you can make an informed choice!