Financial Aid Packages

As financial aid packages begin to arrive from the schools where you've been accepted, you'll have important decisions to make. Each school's package will contain an award letter providing you with the amount of federal, state and school-sponsored aid for which you are eligible, including various scholarships and grants.

This is the time to do a detailed analysis of each college's offer. Understanding each award letter and choosing the best option for you takes careful consideration.

Analyze the Breakdown
First, locate the Cost of Attendance (COA), which reflects the amount of tuition, room, board, books, transportation and any other fees for the school. Be sure these elements are itemized; if they aren't, contact the Financial Aid Office for a breakdown. Confirm that these estimates are accurate, as you will have to adhere to this budget for the school year.

Then, calculate the total amount of grants and loans the school has determined are available to you. If your Expected Family Contribution plus the total aid offered is less than the cost of attendance, you will need to locate additional resources to pay for attending that college.

While funding from work-study may be part of the award, don't figure this into the comparisons. This money is not guaranteed, as the amount of work-study income you can make rests entirely on your ability to commit to the amount of hours needed to earn it. Be sure to ask how many hours per week are required to meet the estimated income. Then, consider how this will impact your ability to maintain your academic progress.

Ask Questions
When making your decision about schools and financial aid award packages, you may want to consider the following questions:

Is the financial aid package likely to cover the same expenses every year?
Are scholarships or grants renewable year after year?
Are scholarship or grant monies increased or decreased after each year?
Is a minimum grade point average required for scholarships?
What happens to your award if you receive outside scholarships?
If your package contains loans, what are the interest rates of the loans that are offered?
If you feel your needs are not being met, or if your family's financial situation has changed, you can always ask for a reconsideration of your award. Be careful to approach your request as reconsideration and not a negotiation. Most colleges are sensitive to a family's specific financial situation, but they are not in the business of bargaining with financial aid.

Make a Choice
Most colleges will look for a commitment from you by May 1. When you have selected a college and financial aid package, you will need to notify the school's Financial Aid Office that you accept their offer. Your school may provide you with a preferred lender list to help you with your government and alternative/private student loan needs.

Next, cover your funding needs. Apply for a Loan.

For more valuable information:

Review the Free Application for Federal Student Aid (FAFSA) information you'll need in

Step 1. Complete the FAFSA.
There is online help available at www.fafsa.ed.gov. You can call the Federal Student Aid Information Center at 1-800-4-FED-AID (1-800-433-3243). If you have a technical question, such as a question on submitting an electronic form, call 1-800-801-0576 (TDD: 1-800-551-5806).

Step 2. Submit the FAFSA.
When submitting your FAFSA online, it is recommended that you obtain a U.S. Department of Education PIN. Your PIN will serve as your electronic signature, allowing for faster processing time. Both students and parents can apply for PINs, as parents of dependent students will also have to sign the form. To obtain a PIN, simply fill out the application at www.pin.ed.gov.

Step 3. Understand the Student Aid Report (SAR).

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