Hello!

Welcome back bloggers – can you believe it’s March already??  I sure can’t.  Many of you have likely already received at least one Financial Aid Award Letter and probably have more on their way to you right now.  So what does that Letter really mean? What is it telling you and what are you supposed to do with it?

What’s a little bit challenging about this topic is that each Award Letter you receive will likely be slightly different from all the others.  They each may be formatted differently, worded differently, require different actions and maybe most importantly, contain varying award types and amounts.  In general, they will contain similar kinds of information and can be approached with the following checklist in mind.

So let’s talk about what I think are the most important things you should be looking for and understanding in the Award Letters you are (or will be!) receiving.

Here is my Award Letter Checklist:

- The name on the Award Letter is mine.

As much as maybe we’d hate to admit it sometimes…mix-ups can occasionally happen when Award Letters are being folded and mailed out to students.  Make sure you have the right one!

- I understand whether or not my Award Letter is Estimated or Final.

If you’ve read some of our previous posts about the Verification Process, you’ll understand that a school is required to perform verification if a FAFSA is selected.  Some schools may produce an Estimated Award Letter before the verification process is complete (based purely on the self-reported information you provided on your FAFSA) that could be subject to change if the information provided on your FAFSA varies significantly from what is actually reflected on your taxes.  If your Award is in fact Estimated, it should be clearly stated on your Award Letter, typically in the first couple of sentences.

- If the Award Letter is Estimated, I understand what documents are required from me to receive a Final Award Letter.

Missing documents are likely in regard to the verification process i.e. signed tax returns, Institutional Aid form, etc.  You can contact the school directly on specific clarification regarding what is missing from your file.

- I understand which portions of my Award Package are Grants and which portions are Loans.

Awards should be labeled fairly clearly in regards to what kind of funding they are.  A Direct Unsubsidized/Subsidized Loan is a student loan that needs to be paid back if accepted.  Awards including the words “grant” or “scholarship” are typically awards that do not need to be paid back.  They are “free” money.  That’s not to say that this “free” money has no strings attached to it though, like a minimum cumulative GPA (almost always at least a 2.0) or something like that – there’s a space for this on my checklist further down…

- I understand what I have to do to confirm my interest and/or acceptance of the Financial Aid that has been offered to me.

Schools will have one of two approaches to this: Passive or Active.  If a school has a Passive approach to award acceptance, they will assume that unless you contact them directly to specifically decline a portion of your award (like a loan), that you are agreeing to accept what has been offered.  If the school has an Active approach, they will REQUIRE that you sign and return the Award Letter specifically indicating which awards you accept, and which you decline; no signed and returned Award Letter equals no Financial Aid. It should be fairly obvious which approach a particular school is taking; a Passive school will not have a space on the Award Letter for a signature or to circle/check “yes” or “no,” an Active school will have a signature line and space to indicate “yes” or “no” for each award.  If you’re not sure, contact the school to ask.

- If Work Study is listed in my Award Letter, I understand how this program works at this particular school.

Each school may have varying policies on how their Work Study program is run.  Most schools will not directly apply Work Study earnings to the bill (i.e. you will not see your $1000 Fall Work Study Award deducted from your Fall bill). Students are typically paid directly for the work they do. Additionally, most schools do not guarantee or place students into positions. The student must look for, apply and interview for positions.  More information is likely given on the school’s website or in an Award Guide that might be included with your Award Letter.

- I understand the conditions of my Financial Aid Awards.

This is often a very over looked part of the review process for students.  At the very least, there are Satisfactory Academic Progress standards which the student is required to meet in order to continue to receive financial aid after freshman year (completing a certain amount of credits and maintaining a certain minimum cumulative GPA).   Additionally, your award amounts might be based on the school assuming that you will be full-time and that what you listed on your FAFSA as your anticipated housing plans (on campus, off or living with parents) is accurate.  If your Award Letter does not list the specific conditions on which it is based, you should be looking for them either in your Award Guide or on the school’s website.

Most importantly, you need to be reading IN FULL the Award Letter you receive and all other materials that are enclosed with it.  If the Letter directs you to the school’s website…go there!  Read carefully and ask the Financial Aid Office if you don’t understand something! 

Have fun!
Amanda