Evaluating the Financial Aid Offer



You should begin to receive financial aid offers in the spring. Each award letter will include a deadline for accepting the financial aid package. If you are considering more than one college, you may want to wait until you've heard from each school before making a decision. 

Evaluate each offer carefully. Do a side-by-side comparison to determine what it will cost you to attend the school. Your family’s out of pocket costs will differ from college to college because both student budgets and financial aid offers vary. When comparing offers, consider the following:

• What is your total student budget and how much are you and your family expected to pay?

• Before you borrow, be vigilant in checking out all scholarships, grants, and employment opportunities first. Can you borrow less? Borrow only what you need and can afford to pay back.

•  How much grant and scholarship aid is offered? Are they renewable? What are the terms and conditions? (For example, some schools require scholarship recipients to maintain a certain grade point average.)

• If your total financial need cannot be met by grants or scholarships, can you earn the extra money by taking on a part time job, or do you need to borrow?

• How much loan aid is offered? What are the terms and conditions? Considering all repayment options, how much will  your monthly repayments be? What are the payments? Remember student loans must be repaid, with interest.

• Research how much you will earn in your profession. Will you be able to comfortably repay your student loans? Remember loan repayment at 8% of income is considered comfortable and manageable. As loan repayment approaches and/or exceeds 15% it becomes most difficult to manage. If not, consider refinancing options and recalculate. You can use the Occupational Outlook Handbook, which can be found at www.bls.gov/ocohome.htm to look up your job prospects and how much you can expect to earn in your future career. You can also use EDWISETM at www.edwise.org. This is an online financial planning tool developed by EDFUND and UCLA to help you do this calculation. 

• Will your loan repayments require you to alter your personal or professional goals and ambitions?

Keep in mind you don't have to accept your entire student aid package. If you don't accept the loan portion, the financial aid office usually won't be ale to increase any grant funds. Let your financial aid administrator know if your resources or expenses change, both before and during the school year. Be sure to sign and return all forms. If required, indicate whether you are accepting or declining an award. Contact your financial aid administrator if you have questions. 

Use the Education Resource Center's Paying for College – Seven Step Approach to Paying for College to create, organize and execute your plan to pay for college.