The fat college envelopes (or more likely emails) have arrived! You've been admitted to several of your target schools—congrats! If you've submitted the FAFSA it won't be too long before you receive additional mail—your financial aid award letters.
Offer letters may seem confusing at first, but we can help walk you through your award. Here’s how to compare offers to determine which one makes the most financial sense for you.
How to Compare Financial Aid Packages
Your financial aid packages are designed to bridge the gap between what college costs and what you and your family can afford to contribute. When you review and compare award packages, there are two criteria to take into account:
- how much of your need is being met
- how your need is being met
(For a more detailed explanation, read How Does Financial Aid Work? )
Financial Aid Award Examples
Sometimes the total size of your financial aid package is not a good measure of its value. Sound contradictory? Check out these award scenarios.
Let's say that two colleges offer you admission: Jefferson College and Roosevelt University. Their sticker prices (cost of attendance) are respectively $20,000 and $40,000. Let's say that your Student Aid Index (SAI), a number which is determined by your FAFSA, is $9,000. Here's the breakdown:
| Jefferson College | Roosevelt University | |
|---|---|---|
| Cost of Attendance | $20,000 | $40,000 |
| Your SAI | $9,000 | $9,000 |
| Your Need | $11,000 | $31,000 |
Remember: Your SAI should remain the same. Your need, on the other hand, varies dramatically, depending on cost of attendance. Let's see how this plays out when your financial aid award letters arrive.
Scenario #1
Roosevelt University offers a hefty award package—more than double the amount offered by Jefferson College.
| Jefferson College | Roosevelt University | |
|---|---|---|
| Your Financial Award | $11,000 | $25,000 |
| Your Need | $11,000 | $31,000 |
| Your Unmet Need | $0 | $6,000 |
But there's a problem. Roosevelt has not met all of your financial need. If you decide to enroll at Roosevelt, you will need to pay $9,000, plus another $6,000 in unmet need. Jefferson, on the other hand, has met your entire need. In this instance, the bigger award is not the better award.
Scenario #2
Jefferson offers a financial aid package totaling $8,000 and Roosevelt offers one totaling $31,000.
| Jefferson College | Roosevelt University |
|---|