Many schools’ financial-aid letters are devilishly difficult to figure out. Here’s what you need to know.
- Many high school seniors face the challenge of evaluating college acceptance and financial-aid offers, but colleges use non-uniform language in their aid packages, making comparison difficult. Only a fraction adopt the U.S. Department of Education’s standardized “Financial Aid Shopping Sheet”.
- College costs go beyond tuition and fees; they include transportation, textbooks, and living expenses. Some colleges may provide more generous grants to freshmen but reduce them for upperclassmen. Additionally, merit awards may come with fine print regarding their renewal or adjustment due to inflation.
- When considering college costs and debt, it’s crucial to balance factors like prestige and long-term outcomes. Families should be cautious about borrowing heavily, focusing on federal loans over private ones and consider appealing inadequate aid offers. Graduation rates, loan-default rates, and average debt loads can help indicate a college’s value.
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