Decoding Your Financial Aid Offers
6 Tips You Should Know Before Making the Big Decision
1. The acronyms you need to know
Cost of attendance (COA): an estimate of what one full year of school will cost. It includes tuition, along with room, board, fees, books, and more. Check your school’s website for a detailed COA.
Expected Family Contribution (EFC): an estimate that the school uses to determine how much financial aid you could get—the amount you actually pay may be different.
2. You might get a few types of financial aid
Scholarships and grants: free money that you won’t have to pay back—seriously!
Work-study: money you earn by working a part-time job through your school
Loans: money you can borrow that you will have to pay back with interest
3. Remember this equation
COA – financial aid = what you’ll pay
Do this equation for every school on your list. If you still owe money, you may need to use savings, private student loans, or other sources to cover the difference.
4. Hold on: don’t just pick the biggest offer
A small financial aid offer with more free money may be better than a larger offer with more loans. Why? Because you’ll have to start paying back those loans after graduating.
6. Choose what works for you
You don’t have to accept all the aid listed in your financial aid offer. Pick the types and amounts of aid you need, and make sure to respond before the deadline.
*Content provided by Sallie Mae