| [February 22, 2018] |
 |
Sallie Mae Helps College-Bound Students Understand and Evaluate Financial Aid Award Offers
College-bound students in the process of choosing a future alma mater
have a lot to consider - academics, location, campus culture, and, of
course, cost - and if financial aid is part of the paying-for-college
equation, students and families should carefully compare school
financial aid packages, which usually include the same information, but
can vary in format and terminology. To help students and families more
easily understand them, Sallie Mae - the nation's saving, planning, and
paying for college company - has tips on how to review, analyze, and
evaluate the financial aid offers they receive.
This press release features multimedia. View the full release here:
http://www.businesswire.com/news/home/20180222006149/en/
Confused about financial aid award letters? Sallie Mae can help! (Graphic: Business Wire)
Sallie Mae suggests these five tips for reviewing financial aid award
letters:
-
Understand what's in the offer. Most awards include the
school's cost of attendance (COA), which typically includes tuition
and fees, room and board, books and supplies, and other related costs,
and the Expected Family Contribution (EFC), an estimate the school
calculates to determine the amounts and types of financial aid for
which the student may be eligible. The award also includes federal
student loans, which may be called direct loans, as well as
scholarships and grants. Some awards combine these into one category,
so be clear on how much of the award consists of loans that must be
repaid, and how much is "free money," like scholarships and grants,
that does not. Work-study, if offered, is not a discount; it is the
total amount the student is eligible to earn for performing work
assigned by the school.
-
Use a spreadsheet to compare awards on an apples-to-apples basis.
List each type of expense and each source of funding sparately, view
them side by side, and weigh the pros and cons of each. Add expenses
not in the COA, like cell phone, entertainment, and other personal
expenses. Note loan rates and repayment terms, and if scholarships and
grants are renewable or contingent on qualifications like maintaining
a certain GPA. Subtract the total amount of aid, including loans, from
the total amount of expenses; if savings and income aren't enough to
make up the difference, using a private
student loan, like those offered by Sallie Mae, can be a
responsible way to bridge the financing gap.
-
The biggest award might not be the best award. If an offer
consists primarily of loans that will need to be repaid, but a smaller
package offers a higher percentage of scholarships, it may make more
sense to accept the smaller offer. Keep in mind the student does not
have to accept everything offered in the award package. Look beyond
the dollar amount and think about what's not in the award letter:
academic quality, graduation rate, sports teams, the social scene, and
other quality-of-life considerations.
-
Think ahead. If student loans are part of the mix, consider how
much debt the newly minted graduate will be able to manage. Borrowing
and repaying responsibly can work in a student's favor by helping to
establish a positive credit history. Balancing studies with the
demands of a work-study job can be challenging, but the experience
gained could lead to more lucrative job offers in the future.
-
Don't be afraid to negotiate. Students hoping for a more aid
should ask the school's financial aid officer to review the offer,
especially if the family's financial situation has changed through
unforeseeable events such as job loss, unexpected medical expenses,
natural disasters, or other emergencies. It never hurts to ask,
regardless of financial circumstances; the best way to make such a
request is by writing a letter or scheduling an appointment.
"Having recently gone through this process with my son, I understand
deciding which school to attend is exciting and emotional for the whole
family," said Martha Holler, senior vice president, Sallie Mae. "It's so
important when all is said and done that you feel confident you made the
right decision. You'll serve yourself well by taking the time to compare
your financial aid awards, read the fine print, and understand the terms
and conditions. And if you get stuck, Sallie Mae has free information
and resources to help."
Tips on understanding and evaluating award letters are available at SallieMae.com/college-planning/financial-aid/financial-aid
award letter and in Sallie Mae's "How
to Read Your Financial Aid Award Letter" video. Find additional
information on saving, planning, and paying for college at SallieMae.com.
Sallie Mae (Nasdaq: SLM) is the nation's saving, planning, and
paying for college company. Whether college is a long way off or just
around the corner, Sallie Mae offers products that promote responsible
personal finance, including private education loans, Upromise rewards,
scholarship search, college financial planning tools, and online retail
banking. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM
Corporation and its subsidiaries are not sponsored by or agencies of the
United States of America.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180222006149/en/
[ Back To TMCnet.com's Homepage ]
|
