Knowing how your financial aid award is determined, learning specific terms and following deadlines are essential to understanding your financial aid award letter.
Going to college is a major financial commitment. Luckily, financial aid can help you cover the cost of getting your degree. Read on for tips on how to read your financial aid award letter so that you can make the best decision for your financial and educational future.
How your award is determined
When you fill out your Free Application for Federal Student Aid, or FAFSA, you will be expected to submit important information about your family's income and assets. From this information, you will get a Student Aid Report, otherwise known as a SAR. Your SAR will list your Expected Family Contribution, or EFC. To determine how much aid you and your family need, your school deducts your EFC from the cost of tuition. Your college's financial aid administrators can then award or "package" financial aid based on the amount of aid needed.
Understanding your award letter
Financial aid award or "package" letters can be difficult to interpret. But it's important to fully understand what your award will mean for your finances and your future. Here are some of the common sources of financial support that you should be familiar with when reading your financial aid award letter from your college or university:
Many financial aid packages feature a combination of the above sources. You should read the letter carefully and decide what kind of aid makes sense to you. You do not have to accept all of the aid offered. But do be sure to pay close attention to all of the terms and conditions of the different options that are offered to you.
You should also determine what conditions apply to scholarships and grants. You may have to maintain a certain course load or GPA. Also, keep in mind that unless otherwise stated, the letter only applies to the upcoming school year. (This means that scholarships and grants may only be available for one year.)
Also be sure to follow the deadlines for accepting your aid so you don't miss the boat.
If you have any trouble with your application, or if you need a more detailed explanation of what aid you are being offered, you can visit the FAFSA website at http://www.fafsa.ed.gov/index.htm or you can call 1-800-4-FED-AID.
 | With so many types of financial aid for college, finding the right financial aid package for your needs can be an intimidating process. If you're a current or prospective college student, learn about financial aid and how to seek out financial aid for college before you settle on using government and private loans to fund your education. |
 | If you're a college student looking for financial aid, your first stop is filling out a financial aid application. Financial aid applications gather information to determine whether you're eligible for need-based financial aid. |
If you need to get more student financial aid from your school, consider these options. |
When you apply for federal financial aid, it's important to make sure you fill out your financial aid forms completely and accurately. Even the smallest mistake could result in the financial aid staff dismissing a college student's request for aid or reducing the amount of money to which you are entitled. |
To a student trying to pay for college, the maze of federal financial aid can be daunting. You could miss out on a vital piece of financial aid if you don't know what to do. What kind of federal financial aid do you need, and how can you get it? |
