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Paying for College:
» Receiving Financial Aid
Your Award Letter Has Arrived, Now What?
Hooray! Financial aid award letters are arriving. Now what do you do?
Get the whole picture
If you're considering more than one college, wait until you've received a letter from each before you begin comparing.
Read the letters carefully and completely
Be sure that you understand any terms and conditions related to the financial aid awards.
Don't let differences throw you
Each letter will probably present information differently. Some may list all cost components. Others may only list "billable" or direct costs. Some may list each aid component and amount in columns. Others may list some or all of the aid components in narrative paragraphs.
Don't miss deadlines
Financial aid funds are limited -- the college may offer your award to another student after the deadline passes. If you're faced with a difficult decision, consider asking the aid office to extend the response deadline.
You can decline parts of the aid package
You're not required to accept the entire aid package as offered. For example, some students decline a student loan or work-study award, or accept a loan for a lesser amount. Remember though, that if you decline part of the award, your family will need to come up with the funds from some other source.
Talk to your high school counselor
Your high school counselor is an excellent resource for helping you understand and evaluate your aid awards. Your counselor can help you interpret what each award letter is saying and give you advice about what questions you need to get answers to.
Call the aid office if you have questions
If your financial circumstances have changed, or you strongly believe that you have special circumstances that were overlooked, call the college and ask to speak with a financial aid administrator. Be ready to explain and document these circumstances.
Take time to fully consider your options
Think about which college offers the best match for your educational and personal goals. The college that's the most affordable may not always be your best choice.
After you reach a decision, follow instructions carefully
It's a good idea to re-read the entire letter and accompanying materials. For example, you may be asked to select a lender for your loan. Complete any forms, sign the letter, and return any requested materials by the deadline.
Notify the other colleges that you're declining their offers
This will allow the colleges to offer your award to other students.
See what's coming
Know how and when the aid will be disbursed, how much aid will be applied directly to the bill, and how much the first bill will be.
Rules Of The Road
Your award will probably consist of a combination of gift aid, loan, and job. These aid types are very different from each other. You need to know the differences, what it takes to keep your aid for the first year, and how your aid might change in future years. Here are general guidelines:
Gift aid is the best form of aid
You don't have to repay it or work for it. Gift aid can be a scholarship (usually based on talent or personal attributes), a grant (usually based on need), or other "free" aid, such as a tuition waiver. Questions to ask:
- What do I have to do to keep my scholarship?
- Is there a minimum GPA or other condition?
- If I win an outside scholarship, what happens to my aid?
- Can it be increased if my family has financial problems?
- Do I have to do anything more than maintain satisfactory academic progress?
Loans are not gifts; they must be repaid
If your student loan is based on need, it will be subsidized. This means you don't have to pay the yearly interest while you're in college. However, after you leave school, your payments will include the amount you borrowed plus interest. Questions to ask:
- What are the terms of my loan?
- Is the yearly interest paid by the government?
- What is the interest rate, and when do I start repayment?
- How much will I owe by the time I graduate?
- What will my monthly repayment be?
- By how much will my loan increase after my first year?
Unsubsidized loans
There's another category of loans -- we call them supplemental. They're used to help pay your share of the costs, and aren't based on need. These loans require you to make yearly interest payments. Don't count these loans as you calculate and evaluate your awarded aid.
A job is an opportunity to earn money
Your earnings are used to pay education costs like books and personal expenses. The inclusion of a job, also known as student employment or work-study, means the aid office will help you find a position where you can earn the amount expected. Questions to ask:
- Do I have a "guaranteed" job, or will I have to find one?
- How are jobs assigned?
- How many hours per week will I be expected to work?
- What is the hourly wage?
- How often will I be paid?
- Will I be paid directly, or will my student account get credited?
How To Spend Less & Bring In More
Examine Your Costs As You Try For More Aid
When you have a money problem, the first place you should turn is the financial aid office. It's their job to help students find a way to pay for college.
Contact the aid office
Based on the information you provide, they may decide to increase your award. Even if they can't give you more aid, they can at least give you guidance about ways to close your financial gap. Some of their suggestions might include the following:
- Don't overlook cost-cutting measures
While the first response to a financial problem is usually to look for more money, keep in mind the expense side of the equation.
- Tuition and fees
These costs can't be reduced unless you cut back on your academic program. This will probably turn out to be more expensive in the long run.
- Room and board
Consider commuting to college. When feasible, it can be a major money-saver. Non-commuters may want to choose a less expensive room (or investigate living off-campus) and a cheaper meal plan. Try for a position as a resident adviser and the free room/board that comes with it.
- Books and supplies
The amount you pay for books and supplies may be reduced if you shop for used books and weigh carefully what course material you absolutely need.
- Personal expenses
Watch these expenses carefully. Do your best to keep your spending under control.
- Travel
Try to travel by the cheapest means available and avoid extra trips home.
Scholarships offered by your college
Once you arrive on campus, check with the aid office about their scholarship postings. Also, visit your academic department to see what's available. As you advance in your major field, there will be more opportunities for academic and career-related scholarships.
Military scholarships
If you're interested in serving in the military, check with the ROTC office on campus. Each branch of the military offers scholarships to enrolled students.
Can you increase your earnings?
If you haven't been assigned a job in your award letter, visit the student employment office and ask them to help you locate a job. If there aren't any openings on campus, ask them for leads to off-campus work. If you've already been awarded a job, see if you can increase your work hours or take on an additional job.
Consider other options, such as supplemental loans
If you still have a financial gap, you may want to investigate other finance options.
Tips for dealing with the aid office
Get acquainted with an aid counselor
It's the job of the staff in the aid office to help families understand their award letter and work out ways to afford the cost of the college. Here are some tips for when you need to contact these folks:
Read all materials carefully
Look over the award letter and all the material that comes with it before you contact the aid office. Make sure the answer to your question hasn't already been provided.
Before you borrow
If you decide to borrow more money than the loan in your award letter, talk with the financial aid office first. They may be able to steer you to a loan with more favorable terms.
When your circumstances change
If your family's financial circumstances have changed since you completed the aid application, inform the aid office.
Provide accurate and complete information
When asking for a reconsideration of your award, provide accurate and complete financial information. A reason like, "In December we had to pay for an emergency medical expense of $5,000," is more likely to be acted on than "We think we'll have difficulty coming up with our share. Can you help us out with more aid?"
Bring copies of other award letters
If you want to ask for more money because another college has given you a better aid package, bring a copy of that school's award letter.
How To Ask The Aid Office For More Money
The Truth About "Negotiating"
If you're interested in attending a college and the amount or type of aid you've received is making your choice difficult (or impossible), contact the aid office.
By phone vs. face-to-face
For routine matters, like getting the answer to a straightforward question, a phone call is the easiest way to get in touch. Communication by e-mail and letters comes next, but you'll probably have to wait a little longer for an answer.
If you have a serious problem, a visit is by far the best way to deal with the aid office. Make sure you call and make an appointment. After admission decisions go out, the aid office is quite busy.
Providing clear supporting information
Whatever you're asking for, be ready to support your request. If you think your family share is more than you can afford, the aid counselor will want to see income statements or expense records. If you'd like additional aid because another college is offering more money, bring a copy of the other college's letter.
"Negotiating"
What is negotiating? First of all, it's a term that financial aid administrators do not use. To them, negotiating is what a customer does to get the best deal from a used car salesperson. To an aid counselor, there's a clear distinction between the price they've set for you in your letter and the price written on the windshield of a car.
Financial aid award appeals
Financial aid staff refer to a request to increase an award as an appeal. If you have a good reason, they don't mind if you ask them to take another look. It usually means you have enough interest to want to reach a bottom line that your family can afford. What are good reasons to appeal your aid award?
- Financial
The most common reason is that you can't afford the family share. In this case, be prepared to present information about your family's financial circumstances. You may want the aid office to take another look at your application or want to present new information. The success of your appeal will depend on whether the aid office decides to increase your need and has the money to add to your award.
- Competitive
You might also appeal because your first choice college has given you less aid than other colleges. Since each college is unique in the way it operates its aid program, this can happen quite often. You should show your first choice college a copy of the other college's award letter and ask if they can improve your package. Your success depends on the college's policy towards competitive appeals. The majority of colleges will have carefully crafted your award (and already spent their aid money) and so won't respond to a competitive appeal. Some, however, don't want to lose an admitted student for a financial reason and will consider an aid increase. A college's response to your request might vary according to your admission rating.
Does it pay to appeal?
Yes, because you may receive more money, and there is almost no chance you will receive less. However, it takes time for you to prepare an appeal and time for the college to act on it. You shouldn't appeal because it was recommended in a magazine article or your neighbor did it successfully. If you can articulate and support your request for more aid, give it a try.
Paying for College
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College Costs
Financial Aid
» Receiving Aid
Strategies for Paying the Bill
Loans At-A-Glance
The White House Initiative gratefully acknowledges collegeboard.com for providing the content found on this page.
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