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Analyze Your Financial Aid Award Letter
See which colleges are the most affordable. When you receive
all financial aid award letters, review them and compare the offers
from each college and university. Calculate how much each school
will cost your family.
Note:
- GIFT AID includes scholarships and grants (money you don’t
repay).
- SELF-HELP AID includes loans (money you repay) and wages from
a job (Federal Work Study wages you don’t repay).
Make sure the financial aid shown on your award
letters is renewable. Renewable means the awards
will be available to you for all four years of college if you maintain
the required minimum grade point average and, for need-based scholarships
and grants, your parents’ income does not substantially increase. Non-renewable
scholarships and grants mean you only receive the money your freshman
year. Call each college’s financial aid office if you have
questions.
Know the minimum grade point average (GPA)
required to keep your scholarships
and grants in sophomore, junior, and senior years in college. Do
you need a 3.0 GPA or only a 2.0 GPA to renew them next year? It
may be challenging to keep scholarships and grants that require a 3.0
GPA or higher. Maintaining a GPA of 2.0 is often referred to
as achieving “satisfactory academic progress”.
Ask the effect additional outside
scholarships
will have on the financial aid awards outlined on your financial aid
award letter. Many colleges reduce their financial aid when students
receive private scholarships or gifts from family members.
You can accept or decline any of the awards
offered. For example,
you may decline a PLUS
loan because
payment on the money borrowed begins 60 days after the loan is made. Instead,
a private
education/alternative education loan may
be preferred because payments don’t begin until six months after
you graduate. Awards should be accepted as soon as you’re
comfortable with the offers; accepting financial aid awards does not
commit you to attend that school. |
