When you receive an acceptance letter to a college, you’ll also receive a customized financial aid package. This is known as a college offer letter, though it can also be called a merit letter or financial aid award letter. Regardless of the exact name they use, all acceptance letters serve the same purpose – they detail what you will be expected to pay if you decide to attend the school.
On the other hand, college financial aid offer letters can be confusing. They don’t follow the same format from school to school and it’s not always clear how much they’re actually offering, making it difficult to tell which college is giving you the best deal. As a result, students and their families often have a lot of questions about financial aid offer letters. Here are the most frequently asked ones and their answers.
What’s included in an offer letter?
The college offer letter includes details of your financial aid package. It tells you the Cost of Attendance (COA) for one year, the Student Aid Index (SAI), and the total financial aid that’s being offered. It also breaks down how much you’re being offered in the form of grants, scholarships, work-study and federal student loans.
Why is a college offer letter important?
A college award letter helps your family budget and plan for college expenses. College is expensive. Very few families in America can afford to pay the full cost of attendance from their personal savings. The award letter details the types and total amount of financial aid that’s being offered to the student. This gives families a better idea of how much they have to pay from their pocket and they can budget accordingly.
What Do I Need to Do to Receive a Financial Aid Offer Letter from a College?
In order to receive a financial aid offer letter from a college, students usually have to complete the Free Application for Federal Student Aid (FAFSA) prior to the school’s deadline. The sooner you complete the FAFSA, the better, as college’s endowment isn’t finite and will run out.
You should also list the college or university on your StudentAid portal to ensure the your receive your FAFSA information.
Your offer letter should then come automatically at a later date. If you don’t receive one, reach out to the college’s financial aid department.
What Is COA?
COA refers to Cost of Attendance. It includes the cost of tuition, room and board, fees, text books, supplies, and transportation. Each college uses their own unique formula for calculating its total COA. Some colleges may also include additional items such as eligible study-abroad program costs and computer purchases among others.
What’s the difference between grants, scholarships, and loans?
Grants and scholarships are types of gift aid. You won’t need to pay back the money that you receive by way of grants and scholarships. Grants are need-based gift, while scholarships are merit-based gift aid.
Loans refers to the financial aid that you will need to pay back with interest. Your award letter may list different types of loans. Each loan will have its own unique terms and conditions.
What does the work-study component of my offer letter mean?
Work-study is a type of financial aid that’s different from grants, scholarships, and loans. It’s not free money, neither do you have to pay back the money. Instead you will have to work to earn this money. Depending on the college, the job may be on campus or off. There is a cap on the number of hours you can work. You can’t work more hours than you’re allocated.
Do I have to accept all the aid offered to me?
No, generally you don’t. You can accept all, accept only a part of it or decline all the aid offered to you. Ideally, you should accept all the grant and scholarship money in your financial aid package. This is free money that you don’t have to return or pay interest on. The federal loans are the next step if you still need more money to cover the gaps. Just be sure to do your research.
If you are taking out a last-dollar scholarship, however, they may require you to accept any and all financial aid offers that come your way.
Can I appeal an offer letter for more money?
Yes, you can negotiate your financial aid package and ask for more.
Colleges may consider your appeal if you can show that your financial situation has changed since you filed the Free Application for Federal Student Aid (FAFSA). Valid reasons could be recent unemployment or loss of income, death of an earning family member, or recent medical expenses.
You can also simply request more money because another school offered you more. If you go to a college and tell them “I really want to attend here, but this college offered me more. Can you match it?” you might just walk away with a bigger financial aid package
Not all colleges may have the budget to increase your financial aid package, however.
What do I do after I receive my financial aid offer letter?
Take time to read and understand the information and instructions in your award letter but don’t be in a hurry to respond. You should wait to receive award letters from the other colleges you’ve applied to. Then compare the letters to determine which is the best offer for you. Since they don’t all follow the same format, however, this can be easier said than done. College Raptor offers a Financial Aid Offer Comparison Tool so you can see – in clear terms – which school is offering you the most bang for your buck.
Each award letter will include instructions on how to respond to the offer as well as the deadline for accepting. Make sure to respond well before the deadline. Colleges usually do not consider late responses.
How do I compare offer letters?
Comparing financial aid offer letters can be a little confusing because each college uses their own unique format and terminology. One way to simplify this comparison is by using College Raptor’s free Offer Letter Comparison Tool. Upload your offer letters and the tool does the calculation. It’ll give you the net price of attending different colleges. This side-by-side comparison will give you a sense of which college is affordable for you and which isn’t.
Who can I ask for help if I don’t understand my college offer letter?
If you have any questions, don’t hesitate to call the school’s financial aid office and get the clarifications you need.
When can I expect to receive my award letters?
There’s no fixed deadline for colleges to send out award letters. Every college follows a different procedure for allocating financial aid. All colleges listed on your FAFSA form will receive your financial information immediately after you submit the form. Most colleges wait to receive all applications so all students get a fair chance to receive aid. You can expect to start receiving college award letters starting early to mid-April.
How Does a School Decide Financial Aid?
Every college follows a different procedure for allocating financial aid, and schools can have vastly different budgets to give to students to attend a school. Students interested in learning about individual endowment programs should visit the college’s financial aid department webpage or contact them.
Are There Any Important Dates and Deadlines for Financial Aid Offers?
Yes, there are a few important dates and deadlines for financial aid offers.
The FAFSA becomes available on October 1st and should be completed as soon as possible. Schools’ financial aid budgets can and do run out, and aid is first come, first serve.
Though you can technically apply until the end of the award year, delaying that long will make you ineligible for any institutional grants and aid.
Students usually have to make a decision on a college by May 1st, and financial aid offer letters should be accepted or declined by then as well. Deposits are due on May 1st as well.
Can Colleges Rescind Financial Aid Offer Letters?
Yes, colleges can rescind financial aid offers and even acceptance to a college. If you fail to meet certain deadlines or your grades slip, you could find both rescinded. Financial aid offers can also disappear because the money was claimed by other students first.
Some scholarships and grants can be based on grades and may not be renewed if the student fails to meet the requirements of the award.
Why is My College Financial Aid Offer Different From Last Year?
Offer requirements and budgets can change from year to year. Income requirements, for example, may be higher or lower than the year previous. Colleges financial aid budgets can also adjust. This is why it’s important to complete the FAFSA even if you didn’t get anything last year – you never know what’s changed in the past 12 months.
Financial aid college offer letters can be overwhelming, especially if you’re not quite sure how much college will cost you. Our Financial Aid Offer Comparison tool cuts through that confusion and presents each letter’s information in an easy to understand format. Try it for free here!
