Paying for College: Understanding Award Letters

by Katherine O'Brien, Senior College Planning Specialist

At some point after being accepted for admission by a college, your child will receive a letter from the financial aid office. This letter will include some or all of the information you need to determine who much the first year of study at that college will cost. Every college your child is accepted to will create one of these. They may come via US mail. Here are a few examples. You will notice that they are somewhat similar, yet somewhat different.

 

These letters sometimes come alongside the acceptance letter. Sometimes they come months later. If any of yours hasn’t arrived by the end of March, it’s time to contact those financial aid offices directly to ask about it.

 

The Top 3 Reasons Award Letters are Delayed

 

1.        The FAFSA or CSS PROFILE (if required) was not submitted.

2.        The FAFSA did not include that college as one of the colleges.

3.        The letter hasn’t been accessed by the student. S/he may have received an email notice that the letter was available. Many colleges post award letters in the college portal, to which students have been given login credentials. Often students forget to check for updates, or they don’t read or follow up on the email(s) telling them to login and receive their letter.

 

Pro Tip: Students should login to their student portals weekly and check for notices. Requests for additional information, invitations to join groups, apply for scholarships or special programs, as well as their financial aid award are often posted inside this platform.

 

If your student has checked email (including spam and junk folders) as well as the portal but finds nothing, it is prudent to reach out to the financial aid office. Check the website for their contact information.

 

Here’s a template for that email:

 

 

Hello,

 

My name is _____. My student ID is _____ (be sure to use the ID for the right college!). I was accepted for Fall 20XX admission. I’m writing/emailing to ask about the status of my financial aid award letter. I have not found it in my student portal nor have I received it via email or US mail.

 

Please let me know if you are missing anything from me. I haven’t seen any notices that you are missing something or that my award letter would be delayed. Let me know if I’ve missed something. The best way to contact me is by phone/text/email/letter.

 

If everything is in order, please let me know, when you can, when I can expect to receive my award letter.

 

Thank you very much for your time and attention. I look forward to making my decision once I have reviewed my financial aid package.

 

Sincerely,

 

Student name

 

 

Sample Financial Aid Award Letters:

 

 

 Here's another one:

 Sample #3 (This one shows both on campus and off campus housing costs:

And a fourth example:

 

Before I show you how to analyze them, allow me to explain some of the terms used.

 

Direct Costs: These are costs paid directly to the college. They include tuition, fees, and, if you are going to live on campus, room ,and board. You will also incur costs for books, supplies, insurance, transportation, personal items, and spending money.

 

Subsidized Loans: Every citizen who files the FAFSA, regardless of income, is eligible to take federal student loans. Subsidized loans are loans that the government pays the interest on while the student continues to be a student. Only students with financial need can take subsidized limits. There are annual limits as well as a total limit on how much can be borrowed. The federal government offers many programs to repay these loans once a student leaves college. Repayment is deferred until six months after the student stops attending college.

 

Unsubsidized Loans: Every citizen who files the FAFSA, regardless of income, is eligible to take federal student loans. All students can take unsubsidized loans. For these loans the interest accumulates from the time the money is borrow. There are annual limits as well as a total limit on how much can be borrowed. The federal government offers many programs to repay these loans once a student leaves college. Repayment is deferred until six months after the student stops attending college.

 

Year	Dependent Students	Independent Students
First Year Undergraduate	$3,500 subsidized/ $5,500 total	$3,500 subsidized/ $9,500 total
Second Year Undergrads	$4,500 subsidized/$6,500 total	$4,500 subsidized/ $10, 500 total
Third Year and beyond Undergrads	$5, 500 subsidized/ $7,500 total	$5,500 subsidized/ $12, 500 total
Graduate/Professional Students	N/A	$0 subsidized/ $20,500 total
TOTAL ALLOWED TO BORROW (Grad student totals include ALL federal student loans)	$23,000 subsidized/ $31,000 total	$23, 000 subsidized/ $57,500 total (undergrad) $65,500 subsidized/ $138,500 (grad)

 

Dependent Students: Undergraduate students who are financially supported by their parents and who have not been declared homeless, or who are not married, or who do not support a child are considered dependent students. Their parents’ financial information is considered on the FAFSA.

 

Independent Students: Graduate students, married students, students supporting children, and students who have been declared homeless are independent students. Their parents’ financial information is not included in the FAFSA. Dependent students whose parents are not able to take a PLUS loan can borrow up to this limit.

 

PLUS loan: Parent Loan for Undergraduate Studies – This federal loan program allows parents to borrow in order to pay for their child(ren)’s college. It must be repaid immediately and is not forgivable by bankruptcy. Parents cannot borrow more than the cost of attendance minus the other aid your child receives. Graduate and professional students can also take PLUS loans. The borrower’s credit history must meet the criteria to take this loan. There is not a total limit on the amount that can be borrowed.

 

How Can I Determine How Much We Will Have to Pay?

 

Use the spreadsheet I created for you! Copy this google sheet and enter in your information.

 

To schedule a college funding meeting, whether you are still in the planning stages, applying, or have already been accepted and are sorting through your options, email Katherine at KOB@CelticCollegeConsultants.com to schedule your private meeting today.