NASFAA Mention: Don’t Let These Common Award Letter Mistakes Cost You Money

"You’ve written essays, completed applications, filled out the Free Application for Federal Student Aid (FAFSA®)and applied for scholarships. Now, you know where you’ve been accepted — congrats! — and it’s time to figure out what you will need to pay. To help do that, you need to carefully review your award letters. This can be confusing because it’s not exactly a streamlined process," College Covered writes.

... "Here are some common award letter mistakes to avoid so you can make the most informed college choice.

1. Not Adding Up the True Cost of Attendance

'One thing we hear is students not factoring in all the different elements of cost of attendance and what they’re going to owe the schools,' says Megan Coval, VP of Policy & Federal Relations at the National Association of Student Financial Aid Administrators. 'There’s such a focus on tuition going up, but there are books and supplies, transportation and room and board to factor in.' And it’s not always intuitive. For example, a school that’s driving distance from home could wind up costing you more in transportation costs than a school that’s a flight away because of parking fees. The schools you’re evaluating should have much of this information on their financial aid websites, but if you’re unsure of how to organize your budget, pick up the phone or send an email to ask. Without a clear understanding of what each school will cost you, you can’t make an effective comparison.

... 3. Borrowing All the Money Offered to You

You don’t have to borrow the total federal student loan amount that was offered for you in your award letter. Just because it’s included in the award letter doesn’t mean you must accept it. While you’ll want to take all the free money — like scholarships and grants — you should be more careful when it comes to accepting the loans. These must be paid back and most of the time with interest, so it’s important to only borrow what you need. Coval says, 'You can go back to the school and say, ‘I actually don’t need the $4,000; instead I’m going to take just $2,000.’' It’s totally OK — and better for you in the long run — to borrow less.

... 6. Not Appealing, If You Can

'If, between the time you filled out the FAFSA and received your award letter, you had a major change in your family’s circumstances, like a parent losing a job or sudden illness, you should reach out to the financial aid office to explain your situation,' says Coval, referring to the appeal process. 'You may be eligible for more financial aid if what you filled out on the FAFSA is no longer reflective of your family’s ability to pay.' It’s important to be realistic. Appeals like this are only honored when the changes to your family circumstances are major and documented. 'There are very strict rules and regulations behind [appeals],' Coval adds."

NASFAA's "Notable Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented.

 

Publication Date: 4/23/2019

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