Evaluating College Award Letters

When you filled out your FAFSA (Free Application for Federal Student Aid) form, you had a chance to list different schools or colleges you wish to attend. As a result, that triggered a report to be sent to the colleges on your list, as well as one to you, which is the SAR (Student Aid Report) that you will be receiving shortly, if not already.

Now what?

Well, the colleges take this information and create an offer for you based on certain criteria that is unique to them. They will create and offer an award for you, commonly known as a package, which is delivered to you in the form of an award letter. This award letter not only contains the federal financial aid you are eligible for, but it also includes the financial aid the college is willing to give you. The federal aid has to be awarded based on the government's criteria as indicated and will be the same for you from school to school, but their personal funds vary from school to school. So in other words, a more expensive school may have more money to award you, therefore making your "out of pocket" expense potentially less than a "less expensive" college.

Many of the more prestigious institutions have large endowment funds and can award more money, so don't rule these out.

In addition to the tuition on the award letter, it will also list the annual expenses such as room and board, books and supplies, transportation, medical benefits and personal money (cost of living). When you look at the total of these expenses, it is easy to estimate what you will have to pay out of your pocket for each school or institution. Add up the awards and make sure to check your EFC(Expected Family Contribution) located in the upper right hand corner of the SAR report matches the figure in the award letter. If there is a significant difference, contact the financial aid office immediately.

Have a great day.