What is a financial award letter and how do I analyze it? Families will receive the financial award letter and it will tell a family how much financial support the school will give for the coming year.
This is the results of going through the financial process of completing the forms and selecting certain college to apply for admission. The financial aid award letter is not a standard form like the other forms within the process. Each school has their own award letter format and the award amount will vary by college. There has been some discussion about standardizing the award form but that has not been approved.
Due to this lack of standardization, some letters can be hard to compare. You also need to remember that the cost of attendance and the schools merit policy may cause significant differences in the award letters. Separating the merit based aid and the self-help financial aid is the most important thing to do. This will give you a better view of your true final cost of your education.
As part of reviewing the award you need to confirm which line items may change. You need to complete the financial aid forms each year and your expected family contribution or EFC will change each year. Understanding the items that drive the need based financial aid will help you better analyze the numbers. With merit financial aid there are normally requirements to maintain that financial award. This may include a certain GPA or participation in a particular activity.
The financial aid award letter video includes:
How to evaluate the award letter
Types of financial award
What is a the financial aid gap