Selecting a Financial Aid Package
How to Make the Big Decision
Now come the letters you and your child have been waiting for: financial aid award letters. It is your task to sit down with your child and determine which aid award best meets your needs. While it may be tempting to jump at good news, you and your child should wait until award letters from all the colleges come in before you make a decision.
Don't Miss the Deadlines
It's important not to miss deadlines for accepting financial aid. Aid is limited, so if your child doesn't accept an award on time, it may go to another student. However, you will also need time to understand each award and explore your options. If you're faced with a difficult decision, consider asking the aid office to extend the response deadline.
The First Step
First, be sure you understand the terms in each letter and are able to compare the awards. Each will list the information in different formats; some may list all college costs, while others list only billable, or direct, costs. You can use our online Compare Your Aid Awards tool to help understand the value of each package. Your child's high school counselor can also help you understand the awards.
You're All Set!
You may discover that the financial aid award at your child's top college meets all your needs, and you can afford to send him to his first-choice school. Congratulations! If your child has been awarded a student loan or you are considering a parent loan, visit our Loan Center for advice about borrowing.
We Can't Pay That!
But what if the award package at your child's first-choice school isn't enough? This can be a difficult situation for parents, but it doesn't have to mean your child's top college is out of reach.
Contact the school's financial aid office. If your financial circumstances have changed or you have special circumstances you believe were overlooked, explain and be ready to document this information.
If you just can't make up the gap between the award and the cost of the college, ask the office for help. If they can't supply your child more gift aid or increase the subsidized loan, they'll probably recommend you or your child borrow more money. A supplemental loan may fill your financial gap and make it possible for your child to attend the college of his choice.
The Gray Area
You may discover that you can afford some but not all of the colleges to which your child has applied, and the financial aid packages from your child's top schools may not be the most attractive.
Assuming you've contacted the financial aid offices and they've done all they can, you and your child must now make some difficult decisions. Do you send your child to the college you can safely afford, or do you take a financial risk so that he can attend his first-choice college?
It's up to each family to resolve these issues. College experts recommend that if you can put together a sensible financial plan, you and your child should choose the one that best fits your child's personal, academic, and career goals, even though short-term costs may be higher. It could cost you more if your child ends up quitting a college he finds unsatisfactory and starting over.
On the other hand, there are thousands of colleges, and there is no single, perfect school for each student. Your child may feel he can meet his goals at a school that doesn't stretch your finances.
You're Not Locked In
Your child is not required to accept the entire aid package as offered. For example, some students decline a student loan or work-study award, or accept a loan for a lesser amount. Remember that if you and your child decide to decline part of an award, you will need to come up with the money from another source.
Sign on the Dotted Line
Once you've made a decision, you and your child should carefully reread the entire aid award letter and accompanying materials to be sure you've filled in all the requested information. For example, you may be asked to select a lender for your or your child's loan. Your child must sign the award letter, and you must return the requested materials by the deadline.
Respectfully Decline
Your child will need to notify the other colleges that he is declining their offers of aid so the awards can go to other students.
Check's in the Mail
You and your child will want to find out how and when the aid will be disbursed, how much aid will be applied directly to the bill, and how much the first bill will be so you can plan for the coming months.
If your final decision means that you'll need to consider an additional loan or explore other financing options, check out our Loan Center today.
