Unlocking Opportunities: Making Sense of Your College Award Letter
RP
Last updated 03/15/2024 by
Rasana PanibeEdited by
Summary:
Summary:
Familiarize yourself with FAFSA award letters, and crucial documents sent by colleges detailing financial support eligibility. Learn how to interpret the letter, the types of aid offered, and your role in the decision-making process.
What is a FAFSA award letter?
An award letter is a documentation sent from a college or university to the student that details how much financial support the student is eligible to receive. The award letter is sent following the student’s submission of the Free Application for Federal Student Aid (FAFSA) and application to attend college or university.
Understanding FAFSA award letters
Award letters help families budget and plan for college expenses. The award letter outlines the type and amount of all financial aid that is offered to the student, including grants (such as Pell Grants and Federal Supplemental Educational Opportunity Grants), loans (for instance, Stafford and Perkins Loans), scholarships, and any work-study eligibility.
Unless otherwise specified, the award letter pertains only to the upcoming school year. Upon receipt of the award letter and deciding which school to attend, students must inform the selected school how much of the award (financial aid) will be accepted.
Key components of an award letter
In general, each financial aid award letter explains:
- The cost of attendance (COA) is an estimate of what you will pay for one year of school, including tuition and fees, room and board, books and supplies, and transportation.
- Your expected family contribution (EFC): A number the school uses to determine how much financial aid you’re eligible for. The lower the EFC, the more funding you can get. Note that this is not the amount of money your family is required to pay.
- Details (and dollar amounts): About whatever grants, scholarships, work-study programs, and loans the school is offering you.
Schools typically send out financial aid award letters close to when they send their acceptance letters. If you have questions about the timing, reach out to the school’s financial aid office.
FAFSA and financial aid
Financial aid is money that helps you pay for college or a career school. It can come in the form of grants, scholarships, work-study programs, and loans. If you’re starting to think about college, you’ve probably come across the acronym FAFSA. It stands for Free Application for Federal Student Aid—a form you need to fill out to get any federal financial aid.
After you submit your FAFSA—and depending on whether you qualify for aid based on the information you provide—you’ll receive a financial aid award letter from each school you list on it. Each letter explains the federal and nonfederal financial aid options the school is offering you.
You’re not obligated to accept the aid that is offered in your award package. You can compare your offers from different schools before you decide.
Key takeaways
- Familiarize yourself with FAFSA award letters to understand your eligibility for financial support.
- Review key components of an award letter, including cost of attendance, expected family contribution, and offered aid details.
- Communication is crucial. Inform your selected school about the amount of financial aid you wish to accept.
- FAFSA is the gateway to federal financial aid, including grants, scholarships, work-study, and loans.
- Compare offers from different schools before making a decision, and respond to each school on time.
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