How to Compare Financial Aid Offers

Why comparing aid offers requires care

A financial aid award letter from a US college is not a simple number — it is a package that typically combines several different types of funding with very different implications for what you will actually owe. Two offers with the same "total aid" number can result in very different out-of-pocket costs depending on how much of that aid is free money (grants and scholarships that do not need to be repaid) versus money that must be repaid (loans) or earned through work (work-study).

This guide explains how to read and compare these offers at a general level. Your specific situation, income, assets, family circumstances, and the details of each college's aid programme are things you should work through with each college's financial aid office and, where appropriate, a qualified financial professional. Nothing here constitutes financial advice.

The three types of aid in a typical package

Most US financial aid award letters break down aid into three categories:

**Grants and scholarships** are free money — they reduce the cost you pay and do not need to be repaid. These include federal Pell Grants (for US students with demonstrated financial need — amounts and eligibility are set by federal law and change each year; verify at studentaid.gov), institutional grants and merit scholarships from the college itself, and state grants (for US students; varies by state).

**Loans** are borrowed money that must be repaid with interest. Federal Direct Loans (subsidised and unsubsidised) have terms and rates set by the federal government and published at studentaid.gov. Private loans from banks or lenders have separate terms that vary and are not part of the federal programme. Including loans in an aid "package" is common but it increases your total cost — not reduces it.

**Work-study** is a programme (for US students with demonstrated need) that provides part-time job opportunities on or near campus. It is not guaranteed income — you earn it by working, and only up to the awarded amount. Verify current eligibility and amounts at studentaid.gov.

• Grants and scholarships = free money (does not need to be repaid)
• Loans = borrowed money (must be repaid with interest — federal terms at studentaid.gov)
• Work-study = earned income from part-time work (not guaranteed; must be earned)

Calculating your net cost

The most useful comparison number is your **net cost**: the Cost of Attendance (COA) minus grants and scholarships only. Do not subtract loans or work-study from this figure — they are not reductions in what you owe, they are ways of financing what you owe.

Cost of Attendance is an official estimate set by each college and includes tuition, required fees, housing, meals, books and supplies, transportation, and personal expenses. The components and their amounts are set by the college and published on its official financial aid pages. Two colleges with similar tuition can have different COAs because of differences in housing costs, required fees, or other components.

Once you have the net cost from grants and scholarships, you can compare it across colleges. The college with the lowest stated tuition is not necessarily the most affordable once aid is factored in.

Requesting a reconsideration

If your financial circumstances have changed significantly since you filed your aid application — a job loss, a medical expense, a change in family situation — you can contact the college's financial aid office to request a review. Many colleges have a formal appeals or professional judgment process.

You may also contact a college's financial aid office to ask them to review your award if you have received a substantially better offer from a comparable college. Some colleges will consider this, though they are under no obligation to match another offer. Be factual and professional in any such communication — provide documentation where it is relevant, and ask about the specific process the college uses for reconsideration.

For international students

Federal aid (Pell Grants, federal loans, federal work-study) is available only to US citizens and eligible non-citizens. International students are generally not eligible for US federal financial aid.

However, many US colleges — particularly private institutions — offer institutional grants and merit scholarships that international students are eligible to apply for. Policies on need-based versus merit-based aid for international students, and the amounts available, vary substantially by institution. Some colleges are "need-blind" for international applicants; many are not. Verify the college's current aid policy for international students on its official admissions and financial aid pages before assuming what will or will not be available to you.

CSS Profile requirements and documentation required for international students also vary — check each college's financial aid office pages.