When you’re accepted to a college, if you’re eligible for financial aid, you likely will also receive an “offer letter” from the school. These pieces of paper are more important than many students and their families realize, and it should be a player in choosing your future school. Here’s what you need to know about them, and why it’s oh-so-important to read it carefully!
What is an Offer Letter?
An offer letter, or financial aid offer letter, refers to the financial assistance a school will offer you if you decide to attend the college or university on May 1st. They contain crucial information about the aid you’re being offered, including the terms and conditions, the amount, and the source of the money.
Why Should You Read Your Offer Letter Carefully?
College is expensive. And offer letters can be confusing. Schools tend to use different formats, programs, terminology, and explanations for their financial aid packages and offers, so comparing them sometimes can be like comparing apples and oranges. They’re anything but standardized.
If you’re not reading them carefully, you could easily presume they offer letters all contain the same information. However, this can be a very costly mistake. Financial aid packages are not created equal, and $10,000 at one school can go much further than at another, more expensive university. And certain packages may require you to participate in a work-study program, while others may not!
Therefore, it’s important to pay attention to the different parts of the offer letter so you can properly compare them.
Highlights of an Offer Letter
Although they don’t tend to have the same structure, financial aid offer letters do usually have the same information. Yours could have sections on:
Scholarship and Grant Aid
The offer letter will detail how much scholarship and grant aid the school is willing to give you. These do not usually have to be paid back except in extenuating circumstances. As a result, they’re very valuable offers and should play a big role in helping you determine which school is the better deal.
However, they could come with specific requirements for you to obtain. You may have to major in a certain area of study or you could have to maintain a certain GPA.
Work Study
If you qualified for work study through your Free Application for Federal Student Aid (FAFSA), your school, if they have a program, could offer you a position on campus or through one of the nearby participating businesses.
Work study programs are jobs through the college and university that are designed to help make school more affordable. They are reserved for students who qualify and could include jobs in the library, art department, or cafeterias.
These positions go quickly, though. So if this is an offer that interests you, you will want to move fast to accept and apply to a more favorable position!
Cost of Attendance
The Cost of Attendance (COA) should be clearly stated in the letter. This is more than just tuition, too. It should include other costs such as room and board, meal plans, textbooks, supplies, and fees. This number is how much attending would cost you out of pocket.
How Can You Easily Compare Your Financial Aid Offer Letters?
While you can absolutely create a spreadsheet that helps you compare financial aid offer letters, this can be time-consuming. You’d have to account for the cost of attendance, different offers and packages, work study programs, loans, and more. But there is an easier way.
College Raptor’s Financial Aid Offer Comparison Tool cuts through confustion and presents your offers in an easy-to-digest format. You’ll be able to quickly see the schools that are the best deals, what they’re offering exactly, and how much a college would cost you out of pocket to attend.
All of this information makes choosing a college much easier for students and their families while also helping them plan for their financial future. You’ll be able to determine how much (if any) you’ll need in loans to attend your top 3 choices, and how much you could possibly owe after graduation!
In a perfect world, the cost of college wouldn’t be as big of a factor as it is when selecting a school to attend. At the moment, though, it is. Students and their families need to think about the benefits and downsides of attending colleges that are more expensive or less expensive than others. Use College Raptor’s tool to make the decision much easier.
Start now — for free! Check out College Raptor’s Financial Aid Offer Comparison Tool right here to upload your letters and get to the bottom of what they’re trying to say!
| Lender | Rates (APR) | Eligibility | |
|---|---|---|---|
 |
5.50%-16.12%* Variable
3.99%-15.61%* Fixed
|
Undergraduate and Graduate
|
VISIT CITIZENS |
 |
5.54% - 15.70% Variable
3.99% - 15.49% Fixed
|
Undergraduate and Graduate
|
VISIT SALLIE MAE |
 |
4.63% - 17.99% Variable
3.49% - 17.99% Fixed
|
Undergraduate and Graduate
|
VISIT CREDIBLE |
 |
6.00% - 13.75% Variable
3.99% - 13.75% Fixed
|
Undergraduate and Graduate
|
VISIT LENDKEY |
 |
5.66% - 14.72% Variable
3.69% - 14.56% Fixed
|
Undergraduate and Graduate
|
VISIT ASCENT |
|
|
3.70% - 8.75% Fixed
|
Undergraduate and Graduate
|
VISIT ISL |
 |
5.62% - 16.85% Variable
3.69% - 16.49% Fixed
|
Undergraduate and Graduate
|
VISIT EARNEST |
 |
5.00% - 14.22% Variable
3.69% - 14.22% Fixed
|
Undergraduate and Graduate
|
VISIT ELFI |
