Decoding Your Financial Aid Offer Letter
Mary V. Cannon, MSM
Director, Financial Aid
I am a true believer in the “right fit” philosophy. The college decision process needs to focus on the attributes of college that are important to the student – academics, location, program, size, activities.
Students and families should always dream big! Your only limits should be your “must haves”. As you narrow your search, you can begin to consider costs. File your FAFSA and include all the schools for which you want to receive an individualized financial aid offer letter. (Capital University’s school code is 003023).
State schools will inevitably look less expensive than private schools but until your through the application process and receive a financial aid offer letter, you and your family cannot equitably compare costs. At Capital, the admissions counselors and the financial aid team are available to answer any questions students and families have.
Cost of Attendance (COA)
The COA is included in offer letters as required by the U.S. Department of Education. It can assist students and families when comparing costs. The COA includes direct costs (billable costs) like tuition and fees, and estimates of indirect costs (not billable) like housing, transportation, personal expenses, etc.
Student Aid Index (SAI) formerly the Expected Family Contribution (EFC)
The Student Aid Index (SAI) is an eligibility index number that a college's financial aid office uses to determine how much federal student aid the student would receive if the student attended the school. The SAI is calculated based on information provided in your Free Application for Federal Student Aid (FAFSA).
Gift Aid
Gift aid includes scholarships and grants. These are funds you don't need to repay. These awards are listed first on your Capital aid offer letter.
- University Scholarships and Grants: Capital and other university’s have funding to assist students in a variety of ways that include academic and need based awards.
- Federal Grants: The Federal Pell Grant and Federal Supplemental Educational Opportunity Grant (FSEOG) are grant funds awarded to students based on need as determined by the FAFSA.
- State Grants: Ohio has several programs based on area of student, academic merit, financial need, etc. The Ohio College Opportunity Grant is an example of one of Ohio’s need based grant programs.
- Outside Scholarships: These types of scholarships are a form of gift aid that is awarded by external organizations like non-profits, community-based organizations, corporations, etc.
Self-Help
Your offer letter might include work-study and loans. Both are considered self-help.
Federal Work-Study (FWS): FWS gives students an opportunity to gain valuable work experience while attending college. This program is based on financial need and is determined by your SAI.
Federal Student Loans: A federal student loan is money borrowed from the federal government to help pay for your education, that must be repaid with interest.
PLUS Loans: PLUS loans are federal loans that graduate students and parents of dependent undergraduate students can use to help pay for college or career school.
Private Education Loans: Also known as Alternative Education Loans, these loans help bridge the gap between the actual cost of your education and your other funding.
FINANCIAL AID OFFER LETTER
Review your offer letter carefully. It will likely include instructions for accepting or rejecting each form of aid. Only accept what you need and remember that you can decline loans if you have other sources of funding.
As with any step in the college decision process, it’s important to take your time to understand the components of you offer letter, evaluate your options, and make the best decision for your future.
Capital’s "Offer Letter Explained" document provides you with a handy guide to decoding your offer letter.