The 5 Steps to Financial Aid

We get it. The financial aid process is confusing. It's hard to know what to do and when. These steps will help you through the process - from getting free money first to making sure you can pay your tuition bill.

Check out the five steps to pay for school and get started today.

Step Four: Compare schools' financial aid offers carefully.

Not all financial aid offers are the same

The schools that you listed on your FAFSA (Free Application for Federal Student Aid) receive your FAFSA results in your Student Aid Report (SAR). This report contains a number called your Expected Family Contribution (EFC). Your Expected Family Contribution is commonly referred to as your family's "ability to pay."

Here’s how it works:

• Each school uses your Expected Family Contribution to calculate your financial need. This determines your eligibility for financial aid.
• Then each school creates your financial aid offer, which can contain federal and institutional grants, scholarships, low-cost loans, work-study, and other programs.
• You receive the financial aid offer in a package, often referred to as an award letter.

Understand what you have received

Your financial aid offer will be different for each school due to different costs of attendance, aid available, and criteria for receiving certain types of aid.

When comparing your financial aid offers, consider the following:

• The percentage of the award that is "free money", which you do not have to repay as long as you continue to meet all obligations. Usually, more is better.
• Compare apples to apples when it comes to the actual cost of attending each school. Often, there are hidden costs which may not be considered in the award letter. These could include:
  • Higher living expenses
  • Transportation
  • Cost of having a social life
• Make sure you understand the long-term responsibility of the award and make the most appropriate choice for your situation.
  • Will you be able to pay back any educational loans?
  • Does your financial aid offer contain any grants that may become loans and require repayment?
  • Are you willing to work a work-study job?

Take action

• Compare your financial aid offers, or award letters, with the Award Analyzer.
• Learn more about Expected Family Contribution.
• Learn more about your Student Aid Report.