Minding Your FAQ's
Question: What is the difference between the various awards on the letter?
Answer: Grants/Scholarships do not have to be paid back whereas loans need to be repaid. Work-study allows you to make money while in school, which you can put towards your tuition, books, expenses, etc.
Question: How does work-study actually work?
Answer: Work-study means you have a job (usually on campus) while you are going to school. Keep in mind that the money you make does not go directly to your school to get subtracted from your bill. Usually you receive a paycheck and are then able to use the money towards tuition costs, fees, books, etc. You should NOT subtract the amount of work-study you are eligible for from your tuition when determining your net cost!
Question: How do I figure out what I still owe after my financial aid?
Answer: Once you have received your award letter from the school, calculate the net cost of attendance by subtracting the aid awarded as well as any additional resources (such as assistance available from community, civic or religious organizations) from your total expenses. Be sure to consider both your direct costs (expenses billed to the student including tuition, room & board, and fees) and indirect costs (including books, travel and miscellaneous expenses that are not reflected on the tuition bill).
Question: How did my school determine how much financial aid I got?
Answer: Usually a school looks at the total cost of attendance minus your EFC (Expected Family Contribution). The EFC is the amount of money the government determines your family should be able to contribute towards your education for one year. The remaining number helps the Financial Aid Office determine how much aid they will award.
Question: Is there a chance to get more aid?
Answer: It is often possible to appeal to the school for additional financial assistance. Schools may differ in their appeal process so it is best to contact the individual school for more information.
Tips for Deciphering
To get a better picture of 4 years of tuition financing, ask the school if financial aid stays relatively the same from year to year. (i.e.; does the school award the same amount each year in grants and scholarships)
Remember to subtract the Origination Fee from the Stafford Loan (except in PA, WV, DE and RI)
If work-study is listed on the letter, remember that you need to work in order to receive the funds you are awarded! Also, keep in mind if you are awarded for example $750 per semester and you only earn $500, then all you receive is $500.
Apples to Apples?
You might think that comparing various Award Letters is easy, but don't just look at the total dollar amount of each award and think the highest one wins. Make sure to compare the costs at each school (tuition, fees, room & board, etc.) with the financial aid package from each school to determine the true cost. Also look at how much aid in each package is "free money" that doesn't need to be paid back (grants and scholarships) and how much you will actually need to repay (loans).
Inquire about increases in tuition, fees, and room & board. How much of an increase do they anticipate over the next several years? What was the average increase over the last several years?
Be sure to check out the grants and scholarships that the school has awarded out of institutional money. Is the grant/scholarship a one-time deal or is it for all four years? What criteria has to be met in order to receive that award each year? Are there additional institutional scholarships that may be available in later years (for upperclassman only or a scholarship given to the person involved in the most community service activities the previous year)?
Need More Info?
For more information or if you have additional questions please contact one of our Education Finance Specialists at 800-708-6684 or email educationfinance@citizensbank.com. They would be happy to help personally interpret your family's Financial Aid Award Letters.
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