You want to write a Financial Aid Award Letter but you don't know how to start. Firstly you need to know what a financial aid award letter is:
What is a financial aid award letter?
A financial aid award letter outlines how much financial aid you will receive from a school for the coming academic year. It's also known as a merit letter, a school assistance bid, a financial aid package, or just an award letter.
You'll find extensive details in this letter, such as a rundown of the different forms of financial assistance you've been given and their corresponding award amounts. The financial award letter should spell out the costs of attendance, the net financial need, and any other federal, state, or school assistance available.
What details are used in a financial aid award letter?
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The estimated cost of attendance (COA):
The COA is a detailed list of any school-related expenditures you may incur during the academic year. Some colleges cover everything from tuition and mandatory fees to room and board and textbooks, while others don't.
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Expected Family Contribution (EFC):
The EFC assists your school in determining the amount of financial assistance you are eligible for. This figure is based on a federally mandated formula that considers your family's income, assets, benefits, and scale. If you have other family members attending college in the same year as you, your EFC will be affected.
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Aid that needs to be repaid:
The financial aid award letter outlines all school-provided aid that must be repaid after a set period, such as direct subsidized or unsubsidized federal student loans. Some loans are dependent on financial needs, while others are not.
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Aid that doesn’t need to be repaid:
You can also come across other forms of assistance that do not require repayment (except in specific circumstances). These forms of assistance, including loans, are itemised on the aid award letter, along with the sums available. Grants, scholarships, and work-study programmes may be available at the federal or state level, as well as through your school.
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Remaining balance:
After grants, scholarships, work-study, and loans, the remaining balance on your financial award letter is the amount you or your family would need to pay out-of-pocket in cash or via private student loans.
How to Write a Letter of Financial Aid Appeal
To begin, contact the school's financial aid office via email or phone to learn more about the appeals process for aid awards. Inquire about who you can contact and any special requirements the school might have.
Here are a few reasons why you should write a letter:
- Since you filed a Free Application for Federal Student Aid or FAFSA, your or your family's financial situation has changed. This may include things like a caregiver's death, a medical emergency, job loss, or homelessness.
- You made a mistake on the FAFSA that you believe influenced your help award.
- You've received a better help offer from another school and are requesting that the school match it.
The following should be included in your financial aid award appeal letter:
- A letter addressed to a particular person. Instead of using a generic “Dear Sir or Madam,” find a particular person at the financial aid office to address your letter to.
- A definite "why" and a simple "ask." Request that the office reconsiders, and then include a detailed explanation of why you need additional financial assistance.
- Particulars in some unusual situations. Explain the condition in a straightforward and frank manner. If your financial situation has changed after you submitted the FAFSA, request that your cost of attendance be adjusted to reflect your current circumstances.
- Appropriate documentation is needed. Include and refer to any related documents that support your clarification in the letter. If the assistant office needs unique forms, bring them with you.
- A precise figure. Provide a realistic amount of financial aid that will enable you to attend school. If you need assistance with particular items, such as travel expenses or materials, be sure to specify them.
- If you have one, a rival bid. If you were given more financial assistance at another institution, include the offer and ask the school to match it.
- Steps to take next. Inquire about the next steps in the appeals process.
- Thank you, With appreciation, begin and end. Thank the office for the financial assistance you've already received and for considering your appeal.
How to read your financial aid award letter
On your assistance award statement, several schools specifically display your overall financial need. If your letter does not include this number, you can measure it using the following formula:
- COA – EFC = Financial need
Subtract the EFC that your school decided for your financial aid package from the cost of attendance indicated on your financial aid award statement. Your financial need is determined by this number; your need-based assistance award cannot surpass this amount.
You will then determine the unmet financial need, which is the amount of money you'll have to pay after grants, scholarships, loans, and work-study assistance. Use the following formula to calculate this number:
Financial need – Financial aid = Unmet need
How do you equate award letters?
Since different schools handle award letters in different ways, you'll want to be cautious when comparing the offers.
Simply enter the relevant information, including the name of each school, and compare up to three letters at a time using our help award letter comparison tool. Besides, see our guide to determining which financial aid award offer is right for you.
Meanwhile, when evaluating financial aid grant letters, suggest the following strategies:
- Identify all forms of assistance so you know what's out there.
- Take a look at what's missing (cost of attendance, etc.)
- Examine the sections of the COA that don't relate to you (e.g. room and board).
- To compare your deals in a “apples-to-apples” format, enter all of your multiple aid award letters into your spreadsheet.
