Factors to Consider When Evaluating Financial Aid Award Letters

Des Moines, IA., May 5, 2009 - For college-bound students, the beginning of spring signals the arrival of financial aid award letters from prospective colleges and universities. The process of evaluating the awards does not have to be overwhelming for Iowa families. Iowa College Student Aid Commission (Iowa College Aid) can help with the process.

Upon college admittance and completion of financial aid applications, financial aid award letters are sent by colleges and universities to provide students and families with the amounts and types of aid for which they are eligible if they attend that college. Among other factors, the amount of aid awarded depends on the cost of attendance at the college, available funding, as well as the family's financial circumstances as provided on the Free Application for Federal Student Aid (FAFSA).

"To help families evaluate award letters, we offer a free interactive financial aid award evaluator on our website," explained Karen Misjak, executive director of the Iowa College Student Aid Commission. "This tool enables families to do a side-by-side comparison of financial aid award letters." If the award contains student loans, the website also provides a college loan repayment calculator so families can estimate monthly payments to help determine what is manageable for their situation. Links to these calculators can be found at http://calculators.iowacollegeaid.gov/co/ICSAC/.

As families evaluate financial aid awards, Misjak recommends students and parents consider the following factors:

• Look at the cost of attendance at each school and then look at how much of the financial aid awarded is from scholarships and grants, which do not have to be repaid; work-study, which is money you earn through part-time work; and loans, which do have to be repaid.
• Are the scholarships and grants available for more than one year or are they renewable each year?
• Are there any conditions that must be met? For example, do you need to play a certain sport or maintain a certain grade point average?
• Is the financial aid award, combined with your savings, enough to cover the cost of attendance?
• Estimate monthly payments associated with borrowing different loan amounts to see if the payments will be reasonable after graduation.
• Accept or decline awards by the required deadline so you do not lose financial aid opportunities.
• Contact the financial aid office if there has been a change in your financial situation. For example, if one of your parents recently experienced a job loss or decrease in income, the financial aid office may be able to adjust your award.

Students and families with questions about their financial aid award letters can contact the Iowa College Aid Information Service Center at 877-272-4456 for assistance. In addition, Iowa College Aid offers many resources on planning, preparing and paying for college such as the Paying for College fact sheet, which helps families consider all of their options when determining how to pay for college. This fact sheet, and other publications, can be ordered free of charge from the Iowa College Aid website at www.IowaCollegeAid.gov.

About the Iowa College Student Aid Commission
As the state's designated guaranty agency for the Family Federal Education Loan Program (FFELP), Iowa College Aid guarantees more than $696 million annually in student loans from private lenders to support over 77,000 Iowa students and parents. In addition, Iowa College Aid administers state scholarship, grant, and loan forgiveness programs totaling over $69.5 million, provides borrowers with assistance to avoid the serious consequences of default, conducts research and distributes higher education data, and offers Iowans assistance in obtaining student financial aid and college-related information. More information is available at www.IowaCollegeAid.gov.

Posted 05/08/09 to www.NASFAA.org. Posting of press releases is done as a service to Members and does not imply endorsement or support by NASFAA. NASFAA does not review this information for content or accuracy.