Financial Aid Award Letter: How Much Aid You'll Receive and Understanding

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How to Estimate Your Financial Aid Package

Getting accepted into college is exciting, but the final decision may depend heavily on finances and the amount of financial aid offered by each institution. Before you commit, it's crucial to review the assistance packages. Here are answers to frequently asked questions to guide you through the process:

Do I qualify for financial aid?

Most students are eligible for some form of financial aid, and there are no income limits to apply for federal student aid. Any student can complete the Free Application for Federal Student Aid (FAFSA) to determine their eligibility.

Completing the FAFSA provides the federal government and colleges with the information needed to calculate your potential aid package. Federal Student Aid (FSA), an office within the U.S. Department of Education, provides assistance in the form of grants, loans, and work-study funds.

The schools listed on your FAFSA will use FSA criteria to determine your eligibility for federal and state aid, calculate your entire financial aid package, and send you an offer letter.

What information will I see in my financial aid award letter?

Each college you're accepted to will send you a financial aid award letter, sometimes known as a FAFSA award letter or student aid package. Understanding this letter is important to making comparisons and finding the most affordable school.

Cost of Attendance (COA)

The COA is a standardized number every school is legally required to calculate and share. It represents the average annual cost to attend the school, including:

• Tuition and fees
• Books and supplies
• Room and board
• Transportation
• Personal expenses

Scholarships and Grants

These financial awards are essentially free money for college—they don't need to be repaid and directly lower your education costs. This section covers all non-repayable aid, including merit-based scholarships and need-based grants from federal, state, and school sources.

Remember: In addition to the aid awarded by the school and federal government, you should apply for private scholarships to further lower your expenses. These won't appear on your initial award letter.

Federal Student Loans and Work-Study Programs

Your award letter will detail any federal student loans you're eligible for after completing the FAFSA. Like private loans, federal loans must be repaid with interest.

Students demonstrating financial need may also qualify for work-study programs. These are federally funded part-time jobs that allow students to earn money while in school to cover educational expenses.

Your Student Aid Index (SAI)

As part of the FAFSA Simplification Act implemented for the 2024–25 Award Year, the Expected Family Contribution (EFC) was replaced by the Student Aid Index (SAI).

Your SAI is a number generated by the government after you complete the FAFSA. This number is uniform across all your financial aid award letters and helps schools determine your qualifications for aid. The lower your SAI, the more aid you're eligible for.

While your SAI is the same everywhere, your calculated financial need may vary by institution because the Cost of Attendance (COA) differs from school to school.

What if some information is missing?

Some schools provide more comprehensive information than others. You and your family may need to do extra research and perform your own calculations. Fortunately, tools are available to help.

Every school offers a Net Price Calculator to help students understand the financial gap remaining after scholarships and grants are applied. You can find your school’s calculator using the U.S. Department of Education’s search tool.

If you still have questions, contact the financial aid office at each school to understand all your options.

How do I decide which offer to accept?

The answer is different for everyone, but if finances are your primary concern, the solution is straightforward. Compare your "net cost" at each school—the Cost of Attendance minus the scholarships and grants awarded. The school with the lowest net cost for you will require the least amount in savings and student loans.

What if I need additional education funds?

Most students face a financial gap not covered by scholarships, grants, and work-study programs. This gap is typically filled with a combination of personal savings, federal loans, and private loans.

Creditworthy students from North Carolina, or those attending schools in North Carolina, can utilize the NC Assist Loan Program as a valuable resource. NC Assist is offered by College Foundation, Inc., a trusted North Carolina non-profit lender. This program provides loans to students and parents with a North Carolina connection to help bridge the gap between financial aid and the cost of college. With no fees and competitive rates, the NC Assist Loan may be the right fit to cover remaining costs.