How to Read a Financial Aid Award Letter A financial aid award letter or notification details the types and sources of funding available to a student. It is important to understand how to read your award letter so you can make responsible decisions. Your actual educational expenses and funding amounts will vary by institution. The following is a sample financial aid award letter with estimated cost and funding amounts:
Cost of Attendance (COA) The total dollar amount needed to attend school for one year including tuition, fees, room and board, transportation, and child care. These numbers are calculated based upon your FAFSA form.
Dear Jayda,
TOTAL GRANTS & SCHOLARSHIPS
$26,500
Net Cost The total COA minus grants and scholarships equals your net cost. This is the cost you or your family are expected to cover for the academic year.
NET COST= COA minus Grants & Scholarships
$5,300
Helpful Tip
We are pleased to offer you the following financial aid package for the 20xx-20xx academic year: NATIVE PATHWAYS UNIVERSITY: FINANCIAL AID AWARD LETTER COST OF ATTENDANCE Tuition & Fees Room & Board Books & Supplies Transportation Other Education Cost(s) TOTAL
FALL SEMESTER $5,250 $5,400 $1,000 $2,500 $1,750 $15,900
TOTAL COST OF ATTENDANCE GRANTS & SCHOLARSHIPS Federal Pell Grant Grants: School State Tribal Scholarships: School Other TOTAL
OPTIONS TO PAY NET COST Work-study: FEDERAL, STATE, OR INSTITUTIONAL LOANS Direct Unsubsidized Loan Direct Subsidized Loan Direct Parent Loan TOTAL WORK-STUDY & LOANS
$3,750 $3,750 $250 $3,000 $1,500 $1,000 $13,250
SPRING SEMESTER $5,250 $5,400 $1,000 $2,500 $1,750 $15,900 $31,800
$3,750 $3,750 $250 $3,000 $1,500 $1,000
Grants and Scholarships Grants are need-based and scholarships are merit-based. Neither has to be repaid. If you withdraw early from classes, you may have to pay all or part of the aid received back to the school.
$13,250
$1,500
$1,500
$1,500 $1,750 $5,000
$1,500 $1,750 $5,000
$9,750
$9,750
To accept this financial aid package as presented, please log in in to your student account. After accepting the award, the financial aid process for the academic year is complete. To decline or reduce student loan amounts, log in to your student account and make the changes on the loan page. It is recommended you accept your financial aid award by June to receive your financial aid refund check before the first day of class. If you have questions or need assistance, please visit our website or visit the financial aid office and speak to a specialist.
Options to Pay Net Cost Work-study is a federal program that employs students parttime to assist with education expenses. A loan is borrowed money you will have to repay with interest when you graduate or leave school.
The net cost or price is the amount a student pays to attend a four-year college in an academic year AFTER subtracting scholarships and grants the student receives. The net price calculator is an online tool used to calculate the net price and compare college affordability. You can find the calculator by searching “Net Price Calculator” on the school’s website and enter your information, or you can visit http://nces.ed.gov/collegenavigator.
N AT I V E PAT HWAY S
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