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Financial Aid
Award Letters Financial
aid award letters are mailed only after a student has
fulfilled all the admission requirements for his or her
college of choice. Their form varies from school to
school, but these letters generally contain information
about the school’s Cost of Attendance (COA) and the
availability of free aid (grants, scholarships), federal
loans for students and/or their parents, and work-study
opportunities.
Here are some terms you’ll need to
know.
Cost of Attendance
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Direct costs include tuition, fees, room &
board, books, lab fees and supplies.
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Indirect costs include travel &
transportation costs and personal expenses.
Estimated Family Contribution (EFC)
This is the federal government’s
calculation of the amount a student and his/her parents
are expected to contribute toward the student’s
education. It is based upon information submitted in
the student’s FAFSA (Free Application for Federal
Student Aid).
Financial Awards
Financial Awards are “free aid,”
which does not have to be paid back. They include
grants and scholarships funded by federal, state and/or
private sources, such as:
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Pell Grants: Need-based financial awards
from the Federal Government.
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State Grants: Need-based financial awards
from state governments
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School-sponsored scholarships: Awards
given by colleges. Scholarship criteria may be
need-based or merit-based.
Unmet Need
Take the school’s Cost of
Attendance (COA) and subtract from it the student’s
Expected Family Contribution (EFC) and his/her Financial
Awards. The balance remaining is referred to as the
student’s “demonstrated unmet financial need.”
Work-Study
Work-study assignments are paid
work opportunities (on- or off-campus) for qualifying
students. Recipients receive an hourly wage and
generally work up to 20 hours per week.
Loans
Federal and private loans are
available to help students and their parents pay for
college. Loans must be paid back. Repayment begins
(after a set grace period) when a student graduates,
drops below half-time status or withdraws from school.
Interest rates and the terms of any promissory note
should be examined carefully.
Helpful hints:
- A
student does not have to accept the full award package
offered by his/her school. If a student declines
part of the award package, he or she will need to find
alternate funding to cover the remainder of his costs.
- Specific
policies vary, but most colleges require students to
maintain a specific GPA to keep their financial aid
awards. Award requirements are available from your
college’s financial aid office.
- Carefully
compare the terms of the award letters of each award
letter you receive. Be sure to select an affordable
college that meets your needs in terms of program
offerings, school location and size.
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