Comparing Financial Aid Packages
March brings not only admission decisions but those about financial aid as well. While an offer of admission is pretty straightforward, financial aid packages tend to be confusing.
The bottom line when comparing financial aid packages is the cost of education to you (and for some, your family). The aid your receive will differ by school, so you’ll need to compare the packages in terms of a few factors.
First, compare the ratio of grants (gift money) to loans for each school. Obviously, packages with larger grants and fewer loans are more desirable! Now, look at how much you are expected to contribute, and compare that amount to your total grant money. Ask yourself: Is this something I’m able to handle? Am I comfortable with this Expected Family Contribution? Will my (and your family’s, if that is an option for you) income sufficiently help toward meeting the expected amount?
Next, compare loan types offered and their terms. Subsidized students loans with low, deferred interest are the most desirable. You don’t start repaying these loans until after you’ve completed your education. Private, unsubsidized loans work differently as they generally require repayment within 60 days of receiving the loan money.
MORE FROM COLLEGE BOUND ADMISSIONS ACADEMY ABOUT FINANCIAL AID:
Financial Matters: How to Appeal Financial Aid
Financial Matters: Legal and Financial Issues Before College
5 Tips for Financial Aid During a Financial Crisis
Many financial aid packages will also include work-study. You do not have to accept this type of aid–many students prefer to find their own jobs on or off-campus. But, there may be significant benefits to work-study employment.
A call to the school’s financial aid office is never a bad idea! You can ask any questions you have. Ask how outside scholarships affect your financial aid. Some colleges allow students to use these scholarships in place of loans and others subtract this amount from gran aid. You should also ask if you are likely to be awarded a similar financial aid package in the following years, assuming your (or your family’s) finances remain at the same level. If there are any changes, parts of your package may not be renewable, thus affecting your future cost of attendance. Contact the school’s financial aid office to learn all these details.