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Knowledge Hub / How To Read Your Financial Aid Award Letter
How To Read Your Financial Aid Award Letter

How To Read Your Financial Aid Award Letter

Paying for College
ELFI | January 18, 2024
How To Read Your Financial Aid Award Letter

If you have a child getting ready for college, you may be anxiously awaiting acceptance letters from their selected schools. But when those letters come, they’ll also include financial aid award letters that detail what kinds of assistance your child is eligible for from the school.  Most students get some help with their education costs. In fact, the National Center for Education Statistics reported that 72% of undergraduate students receive financial aid. However, those award letters can be confusing, so learning how to reach a financial aid award letter will help you understand each college’s actual cost.

What Is a Financial Award Letter?

Schools send financial aid award letters as part of their acceptance packets. It explains what aid the student is eligible for, the cost of attendance, and what the student’s expected out-of-pocket costs would be.  Each school has its format and awards, so comparing college award offerings can be challenging.

What an Award Letter Includes

A typical award letter includes the following information about your child’s aid package

Types of Financial Aid

Depending on the information submitted on the Free Application for Federal Student Aid (FAFSA), your child may be eligible for the following forms of aid: 

Sample Financial Award Letter

Below is an example of a college aid award letter. The format and appearance vary by school, but they all typically include the following: 

Sample Annotated College Financial Plan

Deciding Whether to Accept Federal Loan Offers

Your child will likely be offered federal student loans. Before accepting those loan options, consider these factors: 

With federal loans, your child will be in repayment for at least 10 years, but with alternative repayment plans, they could be in debt for much longer. 

How to Submit a Financial Aid Appeal

If the financial aid package is inadequate, you may be able to appeal the decision. Contact the college’s financial aid office and ask about the process for filing an appeal.  If your finances have changed since the FAFSA was submitted — such as a job loss or the birth of a child — the student may be eligible for additional aid. To submit the appeal, you’ll need to supply documentation making your case, such as a termination letter from your employer. 

Seeking Additional Aid? Next Steps to Consider

If your child doesn’t receive enough financial aid to cover the cost of their chosen school, consider these alternatives:  Choose a less expensive school: Your child may be able to substantially reduce their costs by selecting another college. For example, public schools are less than half the cost of private schools, on average.  Apply for external awards: Scholarships and grants aren’t only available from college or the federal government; your child can apply for external awards from non-profit organizations and private companies. Your child can search for scholarships on platforms like FastWebApply for private student loans: Private student loans can play an important role in covering the gap between the financial aid package offered and what your child has to pay. With ELFI, you can view your loan options and apply online.