Comparing Financial Aid Offers: Choosing the Best Award

So you got in. Congratulations. You thought the hard part was over, think again. Now you have to decide which college you want to attend. By now you may have narrowed it down to a couple. Or the choice may have been made for you if you got rejected. For many, the final decision comes down to finances. Continue reading to figure out what your financial aid offer really means.

Comparing financial aid offers:

In the midst of the excitement of getting accepted, you will have another big decision to make. Can you afford this college? There are some things you must consider when reviewing financial aid offers.

Each college will send your financial aid notification. The first thing to look at is your expected family contribution. That is the amount you and your parents are expected to pay towards your college expenses. If you are a dependant (still living with your parents) your parents income will be a factor. Even if they do not offer to help financially, as a dependant their income will affect your expected contribution.

If you think the family contribution is fair, then you’re lucky. If not, then you may be able to negotiate with to college about your particular financial situation.

The first thing you may see is that your received a lot of aid. Don’t get too excited yet. A good award is one with a high percentage of gift aid, essentially free money that does not have to be paid back.

The remainder will most likely be loans. A majority of loan aid will mean that you can expect to accrue a lot of debt by the time you graduate. Just remember gift aid=good, loan award= not so good.

Even if you are awarded loans, some loans are better than others. For example, subsidized loans are better than unsubsidized loans. This means that while you are in college and up to six months after you graduate, the government will pay the interest on your loans. With an unsubsidized loan you will begin to pay interest as soon as you receive the money.

Only accept as much loan money as you need. There is no point in paying unnecessary interest on money you don’t need. The most aid isn’t necessarily the best for you.

It is smart to apply to colleges of similar prestige. That way, if one of the schools gives you a better award you may be able to negotiate with the other to get a more gift aid. Remember, it is in your best interest to do well in school and have a good academic resume. That way colleges will be more inclined to give you better financial aid offers.

Ultimately you must choose which college is best for you based your educational goals and financial means.