Understanding Financial Aid Award Letters

You have applied to several colleges and filled out all the necessary financial aid applications, including the FAFSA and the additional institutional aid applications. What do you do next? Hopefully, your mailbox will soon be filled with college acceptance letters. You should also be receiving a financial aid award letter from each of these schools. Read them carefully and follow all directions provided.

Most financial aid award letters will list the type and amount of financial aid you are eligible to receive. For instance, if you are eligible for Federal grants, loans, or work-study, these amounts will be listed on the letter. The same is true for state and institutional aid.

To view a sample award letter, please click here. This sample has been designed to show you the key elements you should look for in your award letter. In addition, this sample lists the budget the school used for cost of attendance. Some schools may disclose the cost of attendance on another form. Similarly, not all schools list the Expected Family Contribution (EFC) on the award letter.

Not all colleges are able to meet a student's full financial need. When this happens there is a gap between the amount of aid awarded and the expected family contribution. If you decide to attend a school whose award package does not meet your full need, you and your family will have to come up with additional resources to fund your education.

For information on comparing award packages, click here.