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Volume 14 Issue 7 |
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Page 6 |
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BLACKHAWK |
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10 Tips for Making Sense of Your College Award Letter Do your college award letters have your head spinning? Not even sure what they are? Here are some facts:
· An award letter tells you how much financial aid that particular college or university will be able to provide to you for the upcoming year. · It’s based on your FAFSA (Free Application for Federal Student Aid). You must list a college or university on your FAFSA in order to receive an award letter.
When you read your first award letter, it can be confusing. Here are 10 tips to help you decode an award letter, no matter the type of postsecondary school you choose to attend.
1. Figure out the type(s) of financial aid you’ve been awarded. You may receive a mix of four different types of financial assistance – grants, scholarships, work-study and loans. Grants and scholarships are “free” money. Work-study allows you to earn money by working at a campus job. Loans are amounts that must be paid back. Be sure you know why you received an award and if there are any conditions for maintaining it. 2. Determine if your award is renewable. Some grants and scholarships are only awarded for one year, but you may be able to reapply. You’ll also need to submit a FAFSA application after Jan. 1 of each year that you plan to go to school. 3. Consider if work-study is right for you. Work-study is a job opportunity offered through your school. Unlike a loan or grant, you won’t receive work-study money unless you earn it. Check with your college about applying for a work-study program. 4. Understand all the loan terms. Before you borrow money, be familiar with the interest rates and how they’re calculated. You’ll also want to know when the money has to be repaid, who is responsible for paying it back (you or your parents) and if there are any processing fees that will reduce the total amount you receive. 5. Decide if you really need all of the financial assistance offered to you. You don’t have to accept all of the financial aid described in your award letter. For example, you may be offered loans to pay for transportation and personal expenses, but maybe you can cover those costs with a part-time job instead. 6. Don’t rule out a college based on the cost. Financial aid awards will vary for each college. A school with a higher tuition cost may be able to offer you more financial aid – so wait for award letters before you make your final decision. 7. Compare award letters on equal terms. Each school creates award letters differently. Check out www.ICANsucceed.org for an easy-to-use worksheet on comparing college costs (select the “Compare College Costs Form” in the site’s “Downloads” section). 8. Call the college’s financial aid office for assistance. This office can answer specific questions about the award letter and help you work through special circumstances. 9. Respond as requested. You may need to confirm your acceptance of the award letter by signing it and returning it to the school. This will reserve the funds in your name, but will not lock you into attending that college. You may also have to complete additional loan paperwork. Realize that you may receive more than one award letter from the same college. There are many reasons why a college may send you a revised award letter. Contact the college to find out why. Also, be sure to let them know if you receive a scholarship from an external source.
Don’t be afraid to ask for help. The Iowa College Access Network (ICAN) is available to assist you, and their services are free! ICAN operates College Planning Centers in Cedar Rapids at 1100 Blairs Ferry Road N.E., Suite 104, and in West Des Moines at 160 S. 68th Street, Suite 1101. Both are open 8 a.m. to 4:30 p.m. on Mondays and Fridays, and 8 a.m. to 5:30 p.m. on Tuesdays, Wednesdays and Thursdays. For more information, call (877) 272-4692 or visit www.ICANsucceed.org. |
