You’ve received your college acceptance letters – congratulations! If you’re deciding between multiple schools, one of the biggest factors will likely be what each option actually costs you and your family. Along with your acceptance letters, you should receive an award letter outlining the financial aid for which you are eligible at each college. Here are some important terms you should know:

FAFSA

The Free Application for Federal Student Aid – more commonly known as the FAFSA – is your starting point for financial aid. You need to fill out the FAFSA and submit it each academic year to be considered for financial aid such as scholarships, grants, and federal student loans.

• The FAFSA typically opens each year in October (high school seniors should submit the FAFSA in the fall of their senior year).
• Should be completed as early as possible
• Required by most schools to determine aid eligibility

Award Letter

Your award letter is a financial snapshot sent from a college or university that details how much financial support the student is eligible to receive. The award letter is sent following submission of the FAFSA and applications to attend a college or university.

• Award letters typically arrive in the spring around March or April.
• Includes a mix of “free” student aid (grants and scholarships) and loans
• Varies in format from school to school

Cost of Attendance (COA)

A figure provided by college financial aid offices that estimates the total costs of attending that particular school for a period of one year. This typically includes:

• Tuition and fees
• Room and board
• Books and supplies
• Personal expenses and transportation.

Important: This is an estimate, not a fixed bill. You could reduce costs by making choices like opting to live in a double dorm room versus a single room, selecting a smaller meal plan, or purchasing used books.

Student Aid Index (SAI)

Formerly called Expected Family Contribution (EFC)

This is the amount your family is expected to pay for your education based on various factors reported on your FAFSA.

• Your SAI it is not necessarily the amount of money you will actually pay for college.
• Determines how much needs-based financial aid, such as subsidized loans and Pell Grants, you’re eligible for

Financial Aid

Your award letter provides a comprehensive list of the student aid for which you qualify at each school where you applied. You will let the school know which pieces of your financial aid package you wish to accept. (Hint: take the free money such as grants and scholarships first!)

Types of Financial Aid Offered

• Scholarships and Grants (FREE money for college!)
• Federal Direct Loans
• Federal Direct PLUS Loan
• Federal Work-Study Program

Note – not every type of financial aid listed here is available to every student.

Comparing the Costs of College

Unfortunately there is no standard layout for an award letter, so you will need to carefully look at each offer and be sure you are comparing apples to apples.

• What type of dorm room or meal plan does each school include in their COA?
• Do they include the cost of books and transportation?
• Are miscellaneous expenses or other fees broken down and labeled?

If you’re not sure about any of the numbers, reach out to the school’s financial aid office for clarification.

Can I appeal the decision for my financial aid package?

Yes! You can always reach out to the financial aid office to discuss your award package, especially if your family’s situation has changed since you completed your FAFSA. The following situations can be taken into consideration:

• Recent unemployment of family member(s)
• Medical, dental, or nursing care expenses not covered by health insurance
• Changes in the family’s income and/or assets
• Disability/death or divorce
• Homeless youth
• Parents incarcerated

Final Thoughts

Choosing a college isn’t just about the name on the acceptance letter – it’s about making a smart financial decision about your future.

Take the time to understand your award letters, compare your options carefully, and ask questions along the way.

Need more information about paying for college? Check out our available resources like our Guide to Financial Aid, or schedule a one-on-one consultation with our College Counselor!

*This post was updated on March 20, 2026.