How To Read A Financial Aid Award Letter And Package

Getting a financial aid award letter is the first step in making a college admissions decision.

You’ve been accepted to your school of choice and have been awarded a financial aid package. This is certainly an exciting time, but once you open the financial aid award and begin reading, your excitement turns to confusion and frustration.

Welcome to the annual interpreting of your financial aid award. While there are some guidelines for schools to follow when creating financial aid awards, for whatever reason, there aren’t any strict standards on formatting. This often leaves many schools using unfamiliar formats and terminology.

Unfamiliar language and cryptic codes can be found throughout many financial aid awards. Loans and grants can be lumped together. Codes such as “L” or “LN” are sometimes the only indication that an amount is actually a loan. In fact, most financial aid students receive come in the form of student loans.

Additionally, the true cost of attending the school is often underestimated on award letters. This can leave students constantly coming up short on funds to pay for school. 

This guide will walk you through exactly how to read, compare, and evaluate your financial aid award letter, no matter how confusing it looks. We’ll also show you how to spot red flags, determine your real costs, and decide whether you should appeal for more aid.