Make sure your financial aid awards are clearly understood and all uncertainties are resolved before you accept admission to college.

Two issues that typically must be clarified with college financial aid offices include:

1.  Making sure the financial aid shown on your award letters is renewable.  Renewable means the awards will be available for all four years of college if you maintain the required minimum grade point average and, for need-based scholarships and grants, parents’ income does not substantially increase.  Non-renewable scholarships and grants mean you will only receive the award in your freshman year.   

2.  Understanding the minimum college grade point average (GPA) required to keep your scholarships and grants.  Is a 3.5 GPA, 3.0 GPA, or only a 2.0 GPA required to renew your scholarships next year?  It may be very challenging to keep scholarships and grants that require a 3.0 GPA or higher.  Most colleges give incoming students scholarships and grants knowing a large percentage of the financial aid will be discontinued because many students fail to maintain the minimum GPA. 

The best financial aid awards require students to achieve “satisfactory academic progress,” which means they must maintain a minimum 2.0 GPA while taking at least 12 course units.

NOTE:  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.

NOTE:  You can accept or decline any of the financial aid awards offered.  For example, you should accept all scholarships and grants (free money), and may want to accept some government loans (such as Perkins and Federal Stafford loans).  However, you may choose to decline a PLUS loan because payment on the money borrowed begins 60 days after the loan is made.  Instead of a PLUS loan, you may opt to secure a private education/alternative education loan because payments don’t begin until 6 months after graduating college.