Seven Tips - College Award Letters

High school seniors will soon begin to receive their college financial aid award letters if they haven't already started to trickle in. One college to the next, the letters have no consistent format and can be difficult to understand. Things to keep in mind when reviewing award letters:

1. I strongly suggest my clients create a chart, including each school's name, so they can compare and contrast each line item on the award letters. This simplified view makes college financial decisions much more organized when the inevitable discussions arise. If any award letter is lacking information, call the college financial aid office and request the information you need to make an informed decision.

2. Award letters are generally laid out with scholarships, federal/state/institutional aid, and loans delineated on a per semester basis. If FAFSA has been submitted, the Stafford loan should be included on the letter (typically referred to as "Federal Direct Subsidized Loan" or "Federal Direct Unsubsidized Loan").

3. An often misinterpreted line item is one that reads "PLUS". This stands for Parent Loan for Undergrad Students. This is a loan offered to the parent(s) to make up the difference between the financial award package and the cost of attending the college. Be sure not to misinterpret this as "gift" money (a common mistake).

4. The student has the option to decline any one or more line items on the letter. Whether you make changes to the award letter or accept it "as is", the student must sign and date the letter and return it to the college's financial aid office. (Some colleges have you do this online.)

5. If there are any glaring errors on the letter, contact the financial aid office immediately. (For instance, are the credit hours correctly noted on a per semester basis for the student's intended full time or part-time status?)

6. If the award letter is evaluated and felt to be unfair, students and/or parents are advised to contact the financial aid office to inquire about the appeal process. If there has been a change in financial circumstances since the FAFSA or other financial aid paperwork was filed, contact the financial aid office to inquire about their preferred process and timeline in submitting this new information for consideration.

7. When speaking with financial aid officers remember that their job is to help families. Starting any discussion with an expression of thankfulness for their taking time to consider the student for aid will go a long way in setting a positive tone.