Last updated on Aug 19, 2024

How do you compare and evaluate different scholarship offers and financial aid letters?

If you are applying to college, you probably want to know how much it will cost and how much financial aid you can get. But comparing different scholarship offers and financial aid letters can be confusing and overwhelming. How do you know which one is the best deal for you? Here are some tips to help you evaluate your options and make an informed decision.

1 Understand the terminology

The first step is to understand the terminology and the types of financial aid that are available. Financial aid can be divided into two categories: gift aid and self-help aid. Gift aid is money that you do not have to pay back, such as scholarships, grants, and waivers. Self-help aid is money that you have to earn or repay, such as loans, work-study, and service programs. You should also know the difference between merit-based and need-based aid. Merit-based aid is awarded based on your academic, athletic, artistic, or other achievements. Need-based aid is awarded based on your financial situation and your expected family contribution (EFC).

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Danilo Umali

Higher ed consulting is long overdue for disruption. Enrollment management, predictive analytics, competitive positioning and student/college social media outreach are modern and essential disciplines that set us apart.
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We can actually forecast award letters and financial aid from any college in the country with a high degree of accuracy before the family even submits a single application or files the We simply compare award letters to the forecast. Did we get the amount we expected or maybe more (which is usually the case) or did we get less? Was it the home equity? Is the college testing a lower financial aid benchmark across the board? Did the family display TOO MUCH interest? Keep in mind that NOT ALL COLLEGES WILL APPEAL. Some colleges will appeal. Other colleges will do so only under certain circumstances. We can ask for more money or name a number. Sometimes we can leverage the request with a more competitive offer from a similar college.

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Sherri Ross

Higher Ed Leader | Working with Universities and TRIO & GEAR UP advisors to help students access $9B in scholarships | 80's Music Fan :)
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Finding creative ways to fund education is my passion. As a first generation graduate, I know the critical urgency students are faced with. Helping these students is my passion an purpose. Financial Aid is tricky. The FAFSA has several questions that answered incorrectly can drastically change the amount of aid offered to a student. One thing many students don't realize is that you can appeal any financial aid offer and request more aid. At Imagine, we have resources to show you how to do this. Another great resource that I love to recommend to students is a product called "tuition fit."Tuition fit allows students to see the "bottom dollar" price that the school will accept. Remember, you can negotiate your offers.

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Summer Whitley

Making Impact | Creating Change | Giving Voice
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During a workshop, a student was confused about financial aid types. I explained the difference between gift aid and self-help aid, and between merit-based and need-based aid. This clarity helped the student secure a mix of scholarships and work-study positions, easing their financial burden and focusing on their studies.

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2 Compare the net price

The second step is to compare the net price of each college. The net price is the amount of money that you have to pay out of pocket or borrow after subtracting the gift aid from the total cost of attendance (COA). The COA includes tuition, fees, room and board, books, supplies, transportation, and personal expenses. You can use the net price calculator on each college's website to estimate your net price based on your financial information and the average aid package. You should also look at the breakdown of the aid package and see how much of it is gift aid and how much is self-help aid. The more gift aid you receive, the less you have to borrow or work.

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Nika Shlopov

UCSD Alum, Academic Advisor, College Counselor
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One thing that is often overlooked is the cost of living and rent prices in that city. While you can compare tuition and housing expenses, if a school only gives you a two year housing package, you must also research the city's rent prices as America faces a housing crisis and rising housing costs.

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Summer Whitley

Making Impact | Creating Change | Giving Voice
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A student was deciding between two colleges. By comparing net prices, I showed how one college’s higher gift aid meant lower out-of-pocket costs. Using net price calculators and aid breakdowns, we discovered that the seemingly more expensive option was actually more affordable, leading to a more informed decision.

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3 Consider the quality and conditions

The third step when considering scholarships and financial aid is to assess the quality and conditions of each offer. Ask yourself questions such as how competitive and prestigious the scholarship is, how renewable it is, how flexible it is, how reliable it is, and how compatible it is with other sources of funding. Consider if you have to maintain a certain GPA or enrollment status, if you can use it at any college or program, if it's guaranteed or contingent on funding availability, and if you can stack it with other awards or if it reduces them.

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Summer Whitley

Making Impact | Creating Change | Giving Voice
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As a college consultant I often advised student weighing multiple scholarships. We scrutinized each offer, examining their prestige, renewal terms, and compatibility with other funding sources. Ultimately, each student would evaluate financial security without sacrificing academic goals.

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4 Evaluate the trade-offs and opportunities

In the fourth step of the college scholarship application process, you should evaluate the trade-offs and opportunities of each offer. Consider how it will affect your college experience and future plans. For example, you might have to choose between a full-ride scholarship at a less selective college or a partial scholarship at a more selective one. You may also have to decide between a scholarship that requires you to commit to a specific major or career and one that allows you to explore your interests. Additionally, look into whether the scholarship covers only tuition and fees or all expenses, as well as which loan has the most favorable interest rate and repayment period. Finally, compare work-study programs that offer relevant experience and networking opportunities with those that provide less benefits and more stress.

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Summer Whitley

Making Impact | Creating Change | Giving Voice
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I once guided a student torn between a full-ride and a partial scholarship. Together, we evaluated the benefits of each offer, weighing financial aspects, career commitments, and networking opportunities. The student ultimately chose the partial scholarship, prioritizing career flexibility and networking potential.

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5 Seek advice and negotiate

The fifth step is to seek advice and negotiate your scholarship and financial aid offers. You can consult with your school counselor, college advisor, financial aid officer, or educational consultant to get more information and guidance on your options. You can also contact the colleges and ask them to reconsider or match your offers if you have a better offer from another college or if your financial situation has changed. You should be polite, respectful, and prepared when you communicate with the colleges. You should also have a clear idea of what you want and what you can afford.

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Debbie Schwartz

Founder, Road2College
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Negotiation is a term colleges often prefer to avoid. By appealing, families can clearly articulate why they need additional funds or if a student has received better offers elsewhere. Our free platform, CompareOffers.Road2College.com, allows families to input and compare their student's offers with others from the same college, aiding in understanding college costs. By anonymously comparing profiles, families can gauge if their student received a fair deal. We encourage sharing, comparing, and considering this data for appeals, with no harm in trying. A "no" outcome leaves the student and family no worse off than before.

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Summer Whitley

Making Impact | Creating Change | Giving Voice
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As a consultant, I mentored a student navigating financial aid offers. Together, we crafted a polite and well-prepared negotiation strategy. Impressed by her professionalism, colleges reconsidered offers, ultimately securing her a more favorable financial aid package.

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6 Make a decision

The final step is to make a decision and accept your scholarship and financial aid offers. You should compare your options carefully and choose the one that best suits your needs, preferences, and goals. You should also be aware of the deadlines and requirements for accepting your offers and completing the necessary paperwork. You should keep copies of all your documents and correspondence for future reference. You should also thank the colleges and the donors for their generosity and support.

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Summer Whitley

Making Impact | Creating Change | Giving Voice
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As a director, I guided students through the decision process, emphasizing the importance of aligning choices with their aspirations. One student, torn between offers, weighed options meticulously before choosing the perfect fit. Expressing gratitude to the colleges, she embarked on her academic journey with confidence and excitement.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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How do you compare and evaluate different scholarship offers and financial aid letters?

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1 Understand the terminology

2 Compare the net price

3 Consider the quality and conditions

4 Evaluate the trade-offs and opportunities

5 Seek advice and negotiate

6 Make a decision

7 Here’s what else to consider

Educational Consulting

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