Comparing Awards
Comparing Financial Aid Awards
You have completed your financial aid applications, and finished all forms in requirements. Once you receive financial aid awards, you will need to compare them. The best way to compare awards is to look at individual components. Here are some of things you should look for.
Scholarships & Grants
Start by looking at your awards and figuring out what portion of these are scholarships and grants. You don't need to pay back scholarships or grants so these are the preferred forms of financial aid. Look over at the details of the award carefully as many scholarships and grants have academic stipulations that need to be maintained in order to keep your awards.
Work Study
Once you have reviewed the scholarship and grants portion of your package, the next step is to look at any work-study awards. Work study awards allow you to get a job to help pay for college expenses. One of the benefits of a work study award is that the money you earn (up to what the award stipulates) is not counted against you to calculate financial aid in the future. Keep in mind, however, that you are still responsible for finding a work-study eligible job once you get to campus.
Loans
The last component of a financial aid is loans. You must repay the money loaned to you. Many loans are disbursed through the federal government, and these are the best choices for loans as they usually have lower interest rates than private loans.
Being Selective
Just because you are offered an award doesn't you have to accept it. You can decline any particular component of your financial aid. If, for example, you are offered loans but you feel you might be able to better cover those costs by getting a job then you are free to call the financial aid office and decline a particular loan.
What percentage of your college cost is covered?
After looking at each individual component, it's time to look at what percentage of your total costs the awards covers. If you're offered a $12,000 award for a school that costs approximately $15,000, that awards might be much more competitive than a $20,000 award for a school that costs $40,000. Ultimately, you and your family need to have a discussion about these issues and figure out what makes the most sense for you.
The links below can offer you additional assistance in comparing financial aid awards: