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5 things to look for in a college financial aid offer

By Catherine Mueller

October 04, 2023

After the admissions acceptance letter, the financial aid offer is probably second when it comes to those highly anticipated notices from a college.

For some students, getting admitted is just the first hurdle to overcome. Knowing they will get the financial aid they need can be critical to pursuing their education. After all, it can make the difference between being able to pursue their education at their chosen institution or not.

Because the financial aid offer is so important, there are some important things for students (and sometimes their parents) to consider when looking at the financial aid offer.

Here are five to consider when reviewing a financial aid offer:

1. Understand the different types of financial aid. There are different types of financial aid, some have to be repaid and some does not.
• Grants and scholarships – Grants and scholarships are the best kind of financial aid because, although there may be requirements or obligations, a student typically doesn’t have to repay these types of financial aid funds.  
• Loans – Student loans can help fund an education, but loans must be repaid. When students complete the Free Application for Federal Student Aid (FAFSA), their basic eligibility for federal student aid, including federal Direct Loans, is determined. In addition to federal student loans, some states offer state loan programs and some banks (or credit unions) offer private student loans. Students needing a loan should consider federal loans first since they typically offer the best benefits and repayment options.
• Work-Study – To be eligible for federal Work-Study, a student must have financial need as determined by completing the FAFSA. Federal Work-Study provides an on-campus (and sometimes off-campus) job to a student, who can use the earnings to pay for education and living expenses. Not all schools participate in the program.
2. Be aware of any requirements or obligations. Grants and scholarships are usually the best kind of financial aid because they typically don’t have to be repaid. However, grants and scholarships may have requirements (such as maintaining a certain grade point average or attending regular meetings) or obligations (such entering a specific career field). It's important that students understand and be willing to meet those requirements and obligations before accepting financial aid.  If a student fails to meet those requirements and obligations, they could lose or have to repay the scholarship or grant. Students should always understand and be willing to commit to the requirements or obligations before accepting any financial aid.
3. Know that you can accept or reject any or all of the aid offered. Just because financial aid is offered doesn’t mean you have to accept it. If you don’t want to borrow for your education, you don’t have to accept student loans or if you aren’t sure that you can meet any requirements or obligations, you don’t have to accept grants or scholarships. If you reject any financial aid, be sure you have other funds to pay for your education.
4. Watch for additional applications or forms to complete. Although the FAFSA is the base form for many types of financial aid (federal, state, institutional, and some private scholarships), many forms of financial aid require additional applications or forms before a student receives the funds. For example, to receive federal student loans, a master promissory note must be completed. In addition, some scholarships often require a separate application. Students should watch their email for any notifications about these applications or forms.
5. Compare financial aid offers carefully. If a student is considering multiple schools and the amount of financial aid is a deciding factor, then it’s important for the student to compare the offers. Know what types of financial aid are being offered, what financial aid has to be repaid and what does not. Look at the total cost of attendance at each institution and determine how much out-of-pocket money the student will need to have to attend.

Most schools ask the student to create a portal on their website to view the financial aid offer. However, it wasn’t that long ago that a college mailed a letter to students via regular postal mail – and some still do that. If you haven’t received either an email or a letter in the mail, check with the college’s financial aid office, but remember that most institutions don’t send out financial aid offers until the student has been admitted and after their priority deadline for financial aid.