How to Compare College Financial Aid Awards
Congratulations! You've been admitted to college! Now it's time to compare your financial aid awards to determine which college makes the most sense financially. Here's advice on comparing financial aid awards from members of the Higher Education Consultants Association:
First, compare apples to apples. Make sure that you are comparing the same budget items across schools. For example, factor in the same travel amount and the same pocket money for every school. This means you may have to add to the Cost of Attendance at a given school, if their estimate does not include a particular budget item. Then, look at the proportion of "Free" money (grants/scholarships) to loans and work study. You want to minimize the amount of money you'll need to pay back or earn. Also, look for financial aid gaps. Some colleges do not guarantee to meet full need, and you may find yourself scrambling to bridge the gap between aid and the true Cost of Attendance. Diana Hanson, College Mentors, Santa Monica, California
When comparing financial aid offers, it is important to go beyond the front page and carefully examine how the financial aid is divided up. Just because a school meets 100% of your financial aid need does not make all financial aid awards equal. Look carefully at what is being offered in merit scholarships and grants. These do not need to be paid back. Student and parent loans may make up a large part of the package, and these will need to be paid back. The fewer loans a financial aid package has, the better. Make a financial aid comparison chart and write down what each school is offering and the breakdown between money that requires repayment and that which is a gift. You can also contact the director of financial aid at a school and request a review of your financial aid offer based on any new information you might provide. Susie Watts, College Direction, Denver, Colorado
Compare Total Annual Cost versus Total Cost to Graduate among institutions. First, calculate the Total Annual Cost by adding tuition and fees, books and supplies, room and board, personal expenses, travel and miscellaneous items such as health insurance. Next, calculate the Total Cost to Graduate by multiplying the Total Annual Cost by the number of years students typically take to complete a degree at each college. Keep in mind that inflation, unexpected tuition hikes, and longer graduation timelines will increase your total overall cost. Be sure to verify with financial aid offices if your financial aid award and scholarships are renewable, and will increase if the Total Annual Cost does. Finally, ask the financial aid office how outside scholarships will affect your financial aid award.Cynthia M. Robey, College-WATCH, LLC, Walnut Creek, California
Is something missing from your financial aid award? Does the college list all costs for going to college there? Are you being offered grants, scholarships, loans and work study? Look for a good mix. If you are not offered work study, ask about it. It is especially helpful for you to have a campus job to earn your personal expenses while you're attending college. When looking at the student loans in your package, consider how much is in student and parent loans. An offer of $20,000 in loans that is all parent loan is not a good offer. The parent loans should be used to help pay for the family contribution.Cyndy McDonald, McDonald & Associates, Visalia, California
The media often suggests that families can "negotiate" a better financial aid package. While directors of financial aid do have the authority to exercise what they refer to as "professional judgment," they are unlikely to adjust the amounts unless new, relevant information is introduced. For example, perhaps anticipated medical expenses were not reported or perhaps a parent has been laid off. Approach the financial aid office with respect, asking how to file an appeal. The aggressive approach is almost always counter-productive. Joan Rynearson, College Advisory Service, Bainbridge Island, Washington
Helpful links for comparing financial aid offers:
FAFSA Student Aid Report The FAFSA Student Aid Report includes the amount of your family's Expected Family Contribution according to Federal methodology. Use it to determine if there is a gap between your family's EFC and the financial aid offers you receive from colleges.
Financial Aid Award Comparison Worksheet
Financial Aid Glossary
Finaid.org College Financial Aid Calculators
Student Debt to Salary Calculator
What Your Financial Aid Letter Won't Tell You
Student Loans: Avoiding Deceptive Offers
Advice on Student Loans from ProjectonStudentDebt.org
English-Spanish Glossary of Financial Aid Terms
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Photo credit: Carolee Gravina, Used with Permission
