Compare Award Letters to Find Best College Deal

By now, most high school seniors should have completed the college application process and will begin receiving financial aid award letters. Seniors and their parents should compare those letters to find the one that offers the best financial aid package, KHEAA advises.

The letter will usually show the total cost of attendance — what it costs to go to that school for one school year, including tuition, fees, room, meals, books, supplies, transportation and personal expenses.

It may also show how much the student’s family is expected to pay toward those costs, the expected family contribution (EFC). The EFC is subtracted from the total cost of attendance to get a student’s financial need. The letter will then list various sources of financial aid offered to pay for the costs not covered by the EFC. Students can accept or reject any or all of those proposed sources.

One consideration is how much of the aid being offered is in federal student loans, which will have to be paid back after a student finishes school. If the package includes federal loans and isn’t enough to pay all expenses, students may be looking at a private education loan. Comparison shopping is a must in that case. Students and parents may visit www.kheaamarketplace.com to find the best private loan for their needs.

KHEAA is a public, non-profit agency established in 1966 to improve students’ access to college. It provides information about financial aid and financial literacy at no cost to students and parents. KHEAA partners with Overture Technologies to provide the KHEAA Student Loan Marketplace at www.kheaamarketplace.com to help students and parents find the private college loan that best suits their needs. KHEAA also provides the ThinkAhead Net Price Calculator to universities and colleges. The calculator, available on a school’s website, lets students and parents determine their out-of-pocket costs for attending that school. KHEAA also helps colleges manage their student loan default rates and verify information submitted on the FAFSA.