Decoding the Financial Aid Offer Letter

By Patricia Anderson Jan 13, 2024

Unraveling the mysteries of the financial aid award letters that colleges send to prospective students, helping them plan their higher education finances.

When a student gets accepted into a university or college, they receive a document outlining how much financial aid they can expect to receive. This document is known as an award letter, and it is usually sent out after a student submits their Free Application for Federal Student Aid (FAFSA) and their university application.

An award letter is essentially a detailed breakdown of the financial aid offered by a school to alleviate its costs. It is a critical tool for families trying to budget for college expenses, outlining what types and amounts of aid are being offered. The financial assistance can be in the form of grants like the Pell Grants and Federal Supplemental Educational Opportunity Grants, loans such as Stafford and Perkins Loans, work-study eligibility, and scholarships.

Students should take note that unless explicitly mentioned, the award letter only applies to the approaching academic year. Upon receiving the letter and making their college choice, students must let the chosen school know how much of the offered financial aid they plan to accept.

If a student has filled out a FAFSA and is approved for financial aid, an award letter is sent from every school that has accepted the student. Without a uniform format for these letters, each school describes the financial support they're offering in its own way, reaching students through email, standard mail, or both.

Schools usually send out these award letters at around the same time as their acceptance letters. Contacting the school's financial aid office is recommended if the timing seems off or students have further queries.

Financial aid is not just limited to assistance with the expensive fees of universities or career schools. It covers anything from scholarships and grants to work-study programs and loans. Filling out the FAFSA is the first step to receiving federal assistance and also helps many states and schools determine their financial aid decisions.

Students receive a different award letter for each school they scanned in their FAFSA, detailing the federal and non-federal financial aid offered by each institution. However, students must know that accepting the awards in the package is not compulsory. They are free to compare offers from different institutions before making a decision.

The final step involves communicating with the chosen school about the decision to either accept or decline the offer and doing so before the given deadline.

LEAD STORY