Financial aid award packages
There’s no standard format for financial aid award packages, but each addresses the following elements:
Cost of Attendance (COA): Including tuition, room and board, books, lab fees and other charges.
Expected Family Contribution (EFC): The amount a family is expected to pay toward a student’s college expenses.
Demonstrated Financial Need: The COA (less any scholarships you’ve already received) minus the EFC. This is the number you want the financial aid award to cover so you won’t have additional out-of-pocket costs.
Financial Aid Award: Here’s where you’ll find the good stuff—money for college. This is the amount of aid the school is offering, and it usually includes a combination of free money (grants and scholarships), work-study, and student loans.
Evaluating offers
As you look at each offer, consider not only the total amount of the award, but also the composition of the package. While almost all award packages include Federal Stafford and Federal PLUS Loans, you’ll want to look for the package with the highest ratio of free money (grants and scholarships) to student loans, and the one that best covers the difference between the total cost of attendance and your expected family contribution. This translates to lower out-of-pocket expenses.
If you’re convinced an offer should be better, you’re in luck. Families have the right to request a review of any financial aid package. Schools don’t want to lose good students for financial reasons, and may be willing to revise their offer.
Parents can be instrumental in helping their child appeal a financial aid package. Not only do parents typically have more experience dealing with money and finances, they also may have a more comprehensive view of the family’s financial situation.
Appealing a financial aid award package
Before you begin the appeal process, gather the facts. Call the school’s admissions office to let them know you’ve received the package and that you appreciate their offer. It’s okay to let them know you think their offer is a little on the low side, and that you’d like to better understand the basis for the merit (grants and scholarships) portion of the offer. Was it your child’s GPA or SAT scores? A specific skill or interest? A significant achievement? Write down everything they say; it may give you leverage—especially if your child is a desirable candidate.
You can also take advantage of this opportunity to explain any discrepancies between the school’s view of your financial situation and the reality.
Consider the possibilities
Think about your family’s financial circumstances, and any new information (since filing the FAFSA) that might be grounds for an appeal.
Some of the more common reasons to appeal an award package include:
Loss of income – One or both parents suffers a job loss or pay cut.
Special circumstances – Divorce, marriage, death or birth, or the family assumes responsibility for an aging relative.
Unanticipated expenses – Property tax increases, medical expenses not covered by insurance, or self-employment insurance, to name a few.
Student achievement – Perhaps the school is not aware of a special skill or talent the student possesses, or a recent academic achievement.
The most successful appeals are those that either correct a mistake or inform the school of new information that might affect the award decision. Schools generally do not entertain requests for more funding without justification for the increase.
Submitting an appeal
Since most schools require appeals in writing, parents can help make the request complete and persuasive by addressing these factors.
Financial situation – Outline a comprehensive view of your financial situation and determine what you can reasonably afford to pay. Consider any unusual or one-time expenses related to education, such as a computer, and financial hardships your family has suffered. Be prepared to specify the amount of aid you’ll need for your child to attend that school.
Competing aid offers – If you’re asking the school to match a more favorable aid award, provide a copy of the competing award letter. Let them know your child’s preference is their school, but you’re considering others for financial reasons.
Documentation – The more proof you can show, the better off you will be. Include divorce decrees, bills, bank statements, pay stubs, and any other paperwork that supports your claims. Don’t forget test scores, awards, certificates of achievement, and other honors that demonstrate your child’s potential.
References – Request third-party references from teachers, clergy, employers, and others who can attest to your child’s strengths and achievements. Be sure to consider artistic, leadership, and athletic skills as well as academic achievements.
Appeal Letter – Do’s and Don’ts
At most schools, money is available for Financial Aid Officers to award at their professional discretion. This means they can increase the financial aid package for an academically desirable candidate, or due to special circumstances, but they don’t have to.
For this reason, it’s particularly important to give the appeal process your best shot. Schools realize a family’s circumstances can change unexpectedly and unpredictably, and are usually receptive to a genuine appeal.
The following tips will help you and your child craft a strong appeal letter.
Do include a clearly articulated reason for the appeal
Do back up your claims with documentation
Do describe changes in your family’s financial situation
Do include third-party references as appropriate
Don’t use cookie-cutter letter templates from the Internet; a genuine, heartfelt appeal will have a much greater impact
Don’t embellish or brag; it could hurt your chances for consideration
Don’t use the word negotiate; financial aid officers don’t use this term and could take offense with it
Don’t forget student achievement as a means of persuasion; address talents, academic excellence and other accomplishments that would make your child an excellent addition to the student body For more information about NextStudent, visit www.NextStudent.com.
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