Preparing Financially for College
Preparing Financially for College
Reading – and understanding – your financial aid award letter is a key part of assessing the cost of your college education. To support you in the process, we have provided information to explain the total cost of attendance, award letter and financial aid package. You will also find resources to help you determine the best financial choice you.
What Is a Financial Aid Award Letter?
A financial aid award letter is the notification that students receive informing them how much financial aid a school is willing to offer.
All students that submit a Free Application for Federal Student Aid (FAFSA), were approved for aid, and accepted by a school will receive a financial aid award letter from that school. Financial aid award letters are only for one year of school. You’ll need to complete the FAFSA every year to determine what aid you are eligible for and you’ll receive a new award letter every year with that corresponding FAFSA submission.
Award Letter Definitions & Key Components
The first step to reading financial aid award packages is to understand the elements they include. Here are the main parts to look for:
Accordions
A school’s cost of attendance, (COA) will also be included in your award letter. Schools are required by law to have an official COA, which is the estimate of what it costs to attend their institution for one academic school year. It usually includes average tuition and fees, room and board, transportation, and supplies. The University Registrar provides finalized Student Tuition and Fee Tables for any year. The estimated Cost of Attendance is provided here for planning purposes: It’s just an estimate and is not what will appear on your actual tuition bill.
Based on information provided in FAFSA, the government will determine your EFC or Expected Family Contribution. Your Expected Family Contribution (EFC) is an index number used to determine financial need and your eligibility for federal student financial aid.
Financial need is the difference between your ability to pay for college and how much it costs to attend. Your financial need is determined by subtracting your EFC from the COA.
Gift aid is money that students don’t have to pay back and can come as grants or scholarships. Your award letter will identify which types you’ve been awarded and how much you will receive.
Work-study programs provide you with part-time work on or near campus. Work-study programs are funded by the federal government but are operated by schools.
Financial aid award letters communicate which federal loans you qualified for. Student loans are aid that you must repay with interest. You can choose to accept or decline them.
The Federal Student Aid office offers Parent PLUS Loans to parents borrowing on behalf of their children. Parents can borrow up to the full cost of attendance of their child's school minus any financial aid their child has already received.