It is an unwelcome challenge for families to have to decipher and compare award letters from different colleges. There is little consistency across schools, and the letters themselves can be hard to understand. We’ll do our best to help you work through them by answering the most frequently asked questions parents have about award letters.
Why is there a loan in the aid package?
Colleges consider Federal student loans to be financial aid. We disagree, as do most parents. However, that’s the way the financial aid game is currently structured.
Every student who completes the FAFSA is eligible to borrow under the Federal Direct Loan program, with limits for dependent students of $5,500 (freshmen) to $7,500 (seniors). If you qualify for need-based aid, a portion of the student loan will be classified as “subsidized” and will have more favorable terms than the “unsubsidized” balance. If you do not qualify for enough need-based aid, all of the loan will be unsubsidized, but it will still be available for the same total amount.
Why do our aid awards vary so much by school?
This question has no simple answer because every student’s situation is different. The most common reasons that awards vary are:
Colleges simply have different resources available. Federal financial aid is largely limited to the
Pell Grant program which has a maximum of $5,920 (2017-18) and is phased out to students with an Expected Family Contribution above $5,328.
Institutional aid comes from the college’s own resources, and if they don’t have the money, you won’t see the aid. Those with large endowments can and do offer more need-based aid. Larger endowment colleges in Virginia include UVa, W&M, Richmond, and Washington and Lee.
Colleges have different approaches to awarding financial aid. The most selective colleges emphasize need-based aid and shy away from merit aid. Yes, they are more expensive so a student is more likely to qualify for need-based aid, but you should not expect large merit packages from super-selective schools.
Private colleges generally do offer merit aid as an incentive to attend. The most attractive students each year get the best merit aid grants and scholarships.
State schools with smaller endowments do not have much merit aid to offer and rely on a combination of smaller merit awards and need-based awards.
Why isn’t the package larger? Can I get more aid?
If the amount or make-up of the award thoroughly confuses you, we suggest two steps.
First, run through the college’s Net Price Calculator on their website. See if the “estimated” award that the calculator gives you is generally in line with what you have received. If not, contact the financial aid office and let them know.
Second, if your financial circumstances or life situation has changed since the FAFSA was filed (or really since 2016 since that was the income you used on this year’s FAFSA), it might be wise to consider a request for more aid because of those changes.
Our package includes a scholarship. Is it merit based or need-based? Does it matter?
It doesn’t matter significantly for the current year, but it might matter in future years. Merit aid scholarships often have some performance requirements (like maintaining a certain GPA). Need-based aid depends on a continuation of that need as shown on the FAFSA filed in future years.
When in doubt, we suggest you call the financial aid office and ask about each line item on the award letter.
Is there anything I can do?
You can always ask the school if more aid has become available. The principle is that colleges overbook their incoming class by admitting (and awarding aid to) more students than will attend. As the incoming class is firmed up in April, administrators have a better idea of just how much aid the college is on the hook for. There is nothing wrong with seeing if that new information might allow a tweak of your package, assuming it is your student’s top choice.
There are good ways to ask this, and some not so good ways. We can help you with the details. We have also made available our archived newsletter of
Five Award Letter Mistakes to help with some additional problems.
Don’t let confusion over aid letters make the process more complicated. If you have questions,
please let us know and we’ll help you find the answers you need to make a good decision.
