From FAFSA to Award Letter

A financial aid award letter explains the amount of assistance that a school offers to offset tuition costs. FAFSA applicants receive these letters shortly after or along with college acceptance letters.

What Is Financial Aid?

Financial aid is money that helps you pay for college or secondary school and is offered through grants, scholarships, work-study programs, and loans.

The average cost of tuition and fees among universities for the 2024 to 2025 school year was $43,350 at private colleges, $11,610  for in-state students at public colleges, and $30,780 for out-of-state students at state schools. Room and board can add $10,000 or more. For many families, these costs are unaffordable without student aid, student loans, or both.

FAFSA

FAFSA stands for Free Application for Federal Student Aid, the form required to qualify for federal financial aid. Many colleges and state universities use the FAFSA to determine your eligibility for the school’s financial assistance.

How to Apply

There are three ways to fill out and submit the FAFSA:

1. Use the online application from the U.S. Department of Education.
2. Use the myStudentAid app available on iTunes and Google Play.
3. Print, fill out, and mail the FAFSA to the address on the form.

In addition to filling out the form, provide signatures from yourself and a parent or guardian. You can do this electronically or by printing, filling out, and mailing a signature page with your application.

Details and Due Dates

Provide answers to questions about your family’s finances, including information from tax returns. The FAFSA application is free, and you submit a new FAFSA for each academic year that you attend school. If you plan to attend four years of college, you’ll fill out four FAFSAs, one for each year.

FAFSA forms are usually due by June 30 of the current academic year. To avoid missed opportunities, submit your FAFSA as soon as possible after Oct. 1 each year. Some college and state grant programs, with funds on a first-come, first-served basis, have their own FAFSA deadline, which can be as early as Feb. 1.

Your Financial Aid Award Letter

If approved for financial aid, you will receive a financial aid award letter from each school detailing the federal and nonfederal financial aid options the school is offering. You may receive the letter electronically, via regular mail, or both, and includes:

• The cost of attendance (COA): Your COA estimates what you will pay for one school year, including tuition and fees, room and board, books and supplies, and transportation.
• Student Aid Index (SAI): The SAI is a number the school uses to determine how much financial aid you qualify for. In general, the lower the EFC, the more assistance.
• Details and dollar amounts: These may be grants, scholarships, work-study programs, and loans.

You are not obligated to accept the aid that is offered. Compare your offers from different schools but respond to each institution’s due date.

Types of Financial Aid

• Grants: Most grants are need-based, typically awarded based on your family’s financial situation, and do not have to be repaid.
• Scholarships: Most scholarships are merit-based, depending on academics and your talents and interests.
• Work-study jobs: Work-study programs help you earn money to pay for college while attending and can include an on or off-campus job.
• Loans: A loan is money that you borrow and pay back with interest. Loans can come from the federal government or private sources, such as banks, credit unions, and state-based organizations. Federal student loans are generally less expensive than private student loans.

Compare Financial Aid Awards

1. Calculate the Cost of Attendance. Add tuition and fees, room and board, and estimated costs for books, supplies, transportation, and personal expenses.
2. Subtract Grants and Scholarship Awards. This includes federal Pell grants, state and institutional grants, scholarships, and military education benefits that are not repaid.
3. Subtract Work-Study projected income.
4. Subtract Federal or Institutional Loan amounts.
5. The remainder is required from savings, outside scholarships, gifts from friends and family, and private loans to fill the gap.

Compare the results for all the schools that you’re considering. Take advantage of free aid and work-study programs first, then take out loans only if needed. Federal student loans are less expensive than private loans.

Financial Aid Appeal

The FAFSA process gives the institution’s financial administrator the professional judgment to determine all financial aid awards. If you did not qualify for the amount of aid you anticipated from a school, you may send a financial aid appeal letter for reconsideration. Colleges and universities may take a second look at your need based on:

• A loss of income due to termination or change in employment
• An unexpected life event
• High medical, educational, or family expenses
• Income correction to already reported information on the financial aid application

The Bottom Line

When you apply for financial aid, an award letter will arrive shortly after or along with your acceptance letter. The amount of assistance, in the form of grants, scholarships, and loans, often determines an applicant’s college choice.