MIND YOUR BIZNESS
5 Things to Know about College Financial Aid Award Letters
Article by Joe DePaulo, Co-founder College Ave Student Loans
(BPT) - High school students across the country will soon be eagerly awaiting financial aid award letters from colleges. For many aspiring college students and their parents, this is when things can start to get complicated. College is a big expense and it's important to have a clear understanding of the financing options to ensure students and their parents make wise decisions. According to a recent survey from College Ave Students Loans by Barnes & Noble College Insights, more than twice as many parents (69 percent) found this time - figuring out how to pay for college - more stressful than the college selection process (30 percent). Joe DePaulo, CEO and Co-Founder of College Ave Student Loans, is here to help by decoding one of the most important documents on the road to college: the financial aid award letter.
1. Financial aid award letters can be confusing.
Financial aid letters vary from school to school. There is no uniform format they must follow, so each letter can vary in how they use symbols (such as L or LN for loans) and even how they calculate the cost of college. Make sure to compare how items such as scholarships, loans and work-study are applied to the bottom line.
2. Know the 'net price' of college.
Your letter may include the cost of attendance (COA), which is an estimate of what you can expect to pay for one year of school. Typically the COA includes tuition, fees, and room and board. To find the 'net price' at the college, subtract the 'free aid,' or scholarships and grants, from the COA. This net price - which sometimes can be significantly lower than the 'sticker' price of a college - is the amount the family is expected to pay.
3. Expect to pay more.
Though financial aid award letters typically call out the "expected family contribution" (EFC), expect to pay more over the course of the year. According to the College Ave survey, 59 percent of parents said college was more expensive than they had anticipated. Parking, transportation home, club and organization fees, even dining out, can add to the