Interpreting Financial Aid Offers
Sample Award Packages
Let's look at some numbers. When a school notifies you of your award packages, this is called an award letter. An award letter contains your cost of attendance (COA), and the estimated cost of what your tuition, fees, books, supplies and related living expenses may be during an academic year. The award letter typically identifies your expected family contribution (EFC), which is the calculated amount you and your family are expected to contribute to the cost of your attendance (COA). Your award letter may also provide your financial need, which is the difference between COA and EFC.
The award letter itemizes what types of financial aid and amounts being offered to you. It is very important to understand the types of aid being offered. For example, loans awards are a type of award that must be repaid.
The following examples will give you an idea of what your financial aid award may offer for an ordinary nine-month academic year:
Example 1: Dependent Freshman Student with Very High Financial Need
|
Cost of Attendance (COA) |
$12,000 |
|
Expected Family Contribution (EFC) |
$0 |
|
Financial Need |
$12,000 |
|
|
|
|
Federal Pell Grant (for academic year 2008-09) |
$4,731 |
|
Federal Supplemental Educational Opportunity Grant |
$1,000 |
|
Federal Work Study |
$1,000 |
|
Federal Perkins Loan |
$2,000 |
|
Recommended Subsidized Stafford Loan |
$3,269 |
|
Total Financial Aid Package |
$12,000 |
Example 2: Independent Freshman Student with Moderate Financial Need
|
Cost of Attendance (COA) |
$12,000 |
|
Expected Family Contribution (EFC) |
$3,000 |
|
Financial Need |
$9,000 |
|
|
|
|
Federal Pell Grant |
$1,781 |
|
Federal Supplemental Educational Opportunity Grant |
$500 |
|
Federal Work Study |
$1,000 |
|
Recommended Subsidized Stafford Loan |
$3,500 |
|
Recommended Unsubsidized Stafford Loan |
$2,219 |
|
Total Financial Aid Package |
$9,000 |
Example 3: Independent Freshman Student with Low Financial Need
|
Cost of Attendance (COA) |
$12,000 |
|
Expected Family Contribution (EFC) |
$5,000 |
|
Financial Need |
$7,000 |
|
|
|
|
Institutional Grant |
$500 |
|
Federal Work Study |
$1,000 |
|
Recommended Subsidized Stafford Loan |
$3,500 |
|
Recommended Unsubsidized Stafford Loan |
$2,000 |
|
Total Financial Aid Package |
$7,000 |
Example 4: Dependent Freshman Student with No Financial Need
|
Cost of Attendance (COA) |
$12,000 |
|
Expected Family Contribution (EFC) |
$14,000 |
|
Financial Need |
$0 |
|
|
|
|
Academic Scholarship |
$1,500 |
|
Recommended Unsubsidized Stafford Loan |
$5,500 |
|
Total Financial Aid Package |
$7,000 |
