How To Interpret Your Award Offer
Your official offer of student aid from a college or university, community college or career or technical school will be in the form of an award letter or notice. While you can apply for financial aid before you complete admission applications, schools may not make an official offer of aid until you are accepted for enrollment (some schools also use the Web to provide notices after your freshman year in college).
Once you receive your award letter or notice, be sure to pay close attention to the offer, as well as to what you must do to accept the offer. The award letter will likely contain different types of financial aid combined into a financial aid package and will be for a specific period of enrollment and enrollment status (full- or half-time for example). Your package may contain scholarships, grants, work study or student loans — any of the financial aid types. You may have to sign and return your award notice to accept the aid, although many schools do not require a special acceptance for scholarships and grants (students rarely turn down these types of gift aid). For offers that include work-study and student or parent loans, you may have to explicitly accept them. Signing a promissory note will be required for student and parent loans. If you change your enrollment plans, the financial aid package will most likely have to be revised.
Not all schools include PLUS loans for parents of dependent students in the award letter and financial aid package. Some schools do not include Stafford loan(s) in the letter. Even though you may not see these loans on your award letter, it does not necessarily mean that you are ineligible for them. You may have to apply separately for a determination of eligibility. Contact the financial aid office if you have questions regarding your eligibility for these loans.
The award letter usually identifies the cost of attendance (COA) and expected family contribution (EFC) used to determine your eligibility. The cost of attendance not only includes school charges (tuition, fees and room and board if you live on campus in a residence hall), but it also includes books, supplies and related living expenses while attending school. Expected family contribution is the amount a student and his or her family may reasonably be expected to contribute toward the cost of attending college that year.
Your bill from the school will list all school charges and usually indicates what financial aid has been or will be credited. Wait for the bill and pay only the difference between this credit and the school's charges. Contact the school if you do not receive a bill and school is about to start or if you have accepted the financial aid package but the aid is not reflected on the bill.
Additional forms for financial aid may be required from you — see our quick list for a guide.
Sample award packages may help you know what to expect in your award letter.
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