Key Takeaway: An acceptance letter is a document that lets you know you’re accepted to a college whereas an offer letter details how much financial aid the school is offering you, including federal loans, grants, and more. Comparing your offer letters helps you determine which college is giving you the best deal. While some might use these terms interchangeably, they’re two vastly different documents.
What is an Acceptance Letter?
An acceptance letter is a letter you receive from colleges informing you that you’ve been accepted into the school. They’ll offer their congratulations and highlight the next steps should you wish to attend.
Although this document is sometimes referred to as an “offer of admission,” it’s not the same thing as an “offer letter.” However, your acceptance letter may include the offer letter.
When Do Acceptance Letters Arrive?
Acceptance letters can arrive as early as mid-December or earlier if you applied under early decision or early action. Regular decision applicants usually hear back between mid-March to early April, but some students could receive letters as early as February.
Receiving that first acceptance letter can be exciting but, unless you applied under early decision, you don’t want to rush into making any decision just yet. Unless you applied through Early Decision, you likely have until May 1 to let the schools know where you’re attending. You’ll want to wait until you have responses from all your colleges, whether they be acceptance or rejection letters.
What Is an Offer Letter?
An offer letter refers to the information package you receive regarding financial aid you qualify for at the particular college. All offer letters list federal student loans if you completed the Free Application for Federal Student Aid (FAFSA), but they could also include federal grants, institutional grants and scholarships, state scholarships, work study programs, and more.
Keep in mind that if you want to be considered for institutional financial aid, you likely have to complete the FAFSA, even for merit-based grants. Colleges have varying deadlines for the FAFSA (or CSS Profile) – usually in mid- to late winter – but completing it as soon as it comes available on October 1 helps you avoid any last minute submission stress.
Offer letters may also be called an award letter, financial aid award letter, or financial aid offer.
When Do Offer Letters Arrive?
The exact date your offer letter arrives depends on the school, but most students can expect them in mid-March to early April.
If you applied under regular decision, you might receive your offer letter with your acceptance letter. If you applied through early decision or early action, you’ll likely have to wait a few weeks or months to see what financial aid you qualify for.
How Are Offer Letters Calculated?
Every college calculates financial aid differently. Schools that have more funding will usually offer a more generous financial aid package. However, their tuition may also be more expensive than most other colleges. It’s essential to compare offer letters past the initial amount.
Even though an offer looks like a lot on paper, it may not cover as much tuition as another college due to the sheer cost of the initial school. You may find that the college offering you the largest aid package is still unaffordable to you!
If you believe your offer letter doesn’t cover your full need, your financial situation has changed since you completed the FAFSA, or another school offered you more money, you may be able to appeal the college’s decision.
Comparing Your Offer Letters: Terms You Need to Know
Understanding the terms in your offer letter is important so you can make a proper comparison. However, interpreting the terms can get confusing, as there is no standard format for financial aid offer letters. To simplify the process, we’ve put together some of the more common terms you’ll come across in your offer letter.
Cost of Attendance (COA)
The Cost of Attendance, or COA, refers to the estimated total cost of attending that particular school for one academic year. The COA usually includes the tuition, room and board, fees, transportation, books, and supplies. The COA in the offer letter is just an approximate cost; your actual cost may be more or less than the number supplied.
Student Aid Index (SAI)
Your Student Aid Index (SAI), formerly known as Expected Family Contribution (EFC) is based on the information submitted on your FAFSA. It ranges from –1500 to 999999. The lower the SAI, the more financial need the student has. Colleges then use your SAI to determine how much financial aid they’ll offer you.
Financial Need
Financial need is the difference between the cost of attendance and your ability to pay for college. Your perceived need can vary greatly from one college to another.
Work Study
Work study programs allow eligible students to work part or full-time on or near campus. Colleges operate these programs but the federal government funds them. Not all students qualify for work study. If you ticked the work study box in your FAFSA and if you qualify, your offer letter will include your work study details.
Gift Aid
Gift aid is essentially free money*. You don’t have to pay it back. Gift aid comes in the form of grants or scholarships.
Student Loans
Student loans can be federal or private loans. Most colleges and universities will not offer private loans as part of their offer letter, but there are exceptions.
Comparing Your Offer Letters: Financial Aid Offer Comparison Tool
Interpreting and comparing offer letters from different colleges is time-consuming, uses different formats, and can be a bit confusing even if you know all the terminology. That’s where College Raptor comes in. We have a Financial Aid Offer Comparison Tool that makes the work easy. Upload your letters and we’ll show you exactly how much you can expect to spend on any given college you’ve been accepted to. This can help you make an informed decision for your finances as well as your education!
*While a scholarship does not have to be repaid, there may be other obligations associated with the scholarship.
