Your Award Letter Financial Aid 101

The Financial Award Letter The letter will detail your award. It will contain an outline of the expected costs, your expected family contribution (EFC), and the types of financial aid the school is offering to make up the difference between cost and EFC. The award letters will differ from school to school. Most aid letters contain loans-REMEMBER THEY ARE OPTIONAL. YOU DON’T HAVE TO TAKE THEM OUT. If you have questions call the schools financial aid office and speak with a counselor.

Things to consider when reading your award letter Read your award letter carefully to make sure that you understand all terms and conditions so you can decide if you want to accept any, or all, of the aid offered. Look for instructions on your next steps. You may need to complete additional paperwork such as loan applications. Determine if grants or scholarships are available for more than one year. Remember, unless otherwise stated, this letter applies only to the upcoming school year.

Grants Money that does not have to be repaid Grants are awarded to students based on criteria set by the institution or the government. Examples of grants Federal Pell Grant Institutional Grants State Sponsored Grants

Scholarships Scholarships are awarded to students based on criteria set by the provider. They do not need to be paid back.

Loans A loan is money borrowed that MUST be repaid. Typically they must be paid back with interest to the lender/government over an extended period of time. Subsidized Loans-Money that you have to pay back with interest; however, the government pays the interest for you while you are in college. Unsubsidized Loans-Money that you begin paying interest on as soon as it’s disbursed.

Work Study Money earned by working. If you see work-study on your award letter you MUST work in order to receive the money.

Accepting the Award You MUST tell the college how much of the award you plan to accept. If you don’t respond to the school by the deadline you risk losing your award.

Sample Award Letter Dear Student, After reviewing your FASFA, we are pleased to provide you with the following financial aid offer. This award is contingent upon anticipated renewal of funding from federal, state, and private sources. You may accept or decline any of the awards offered. Type of AidFallSpringTotalAcceptDecline Pell Grant$600 $600$1200 ( ) ( ) Iona Grant$1000$1000$2000 ( ) ( ) Work-Study$700$700$1400 ( ) ( ) Perkins Loan$600$600$1200 ( ) ( ) Stafford Loan$2000$2000$4000 ( ) ( ) ___________________________________________________________ $4900$4900$9800