<p>Inside Higher ed article on the controversial act of deciphering the complex, and often unintelligible jargon and buzzwords found in financial aid letters.</p>
<p>I hadn't thought about this subject, but yes there was considerable variation in D#2's financial aid letters. The "best" one listed loans and scholarship grants in separate boxes. Several put all monies together. COA was an elusive figure in many cases.</p>
<p>Recommend also checking out the web site mentioned in the article, as well. The web site is fairly new, but has five sample FA award letters already, "graded" A- to D and annotated somewhat humorously. It is amazing that colleges can send out marketing materials that are punchy and informative yet continue to send out financial aid letters that are so obtuse.</p>
<p>Why can't colleges come up with the equivalent of a HUD Closing Statement that makes very clear who is paying how much for whatever to whom? That would include a breakdown of the cost of attendance and a breakdown of how it will be paid, (grant, scholarship, parent contribution, student contribution, parent loan, student loan, work-study, other). It should also indicate which funds are renewable, such as scholarships, and how outside scholarships will affect the package. e.g. will loan or grant be reduced? Wouldn't this be a good way for students and parents to evaluate FA packages?</p>
<p>Actually, I didn't think any of the finaid offers were that hard to decode. If it said scholarship or grant, that amount was subtracted. Loans are loans and need to be repaid. Even the fine print about how to keep the scholarships/grants wasn't really buried.</p>
<p>"I didn't think any of the finaid offers were that hard to decode."</p>
<p>I think the point is there shouldn't need to be any decoding. I must admit that the letters were clearer than expect given higher ed's telling of the story. However, how does a person know if his interpretation is correct? More to the point, would a freshman be willing to make a decision about which admission offer to accept between 2 or 3 schools based upon his understanding of the FA packages imparted by these letters? In two instances a call to the institution was required to get the full story: deadlines are not enforced at one school, and cost of attendance is available upon request at another.</p>
<p>We saw a real variation in award letters. I'd rank RIT as tops for clarity - the award letter had a detailed COA breakdown on the back side. SUNY-Geneseo was definitely the worst - I had to call the financial aid office to figure out how much the school would cost for an out of state student.</p>
<p>We've been a little successful in lobbying our aid folks to change their letter, but there's plenty of room for improvement. I think they're afraid of stepping away from "official" sounding language, not realizing that it's extremely cryptic to many people.</p>
<p>I hope that site brings about some changes.</p>
<p>NY Times "Your Money" article: "The A-B-Cs of Calculating Financial Aid"</p>
<p>I really don't see why people have so much trouble with reading these award letters. There are numerous resources available on the web, in libraries, and in guidance offices that explain the various forms of aid. People really need to put a little effort into educating themselves.</p>
<p>Yes, the award letters do vary. But all a person needs to do is separate out the fixed costs (tuition, room, board, fees) and the types of aid. Take the fixed costs & subtract the scholarships & grants. Since colleges have different loan policies --- and this is not going to change --- that will give a true picture of the cost (for comparison purposes). Then the student can decide if he/she wants to take out the loans. I agree it might be helpful to pull out work-study from the aid listing, since it's not upfront money (it might be best to list it separately as a way to earn money for miscellaneous expenses during the term).</p>
<p>Schools could improve their letters by including their outside scholarship policy, but I wouldn't suggest including it in the body of the letter. Some schools include that as supplemental info with the award letter. I also don't think including PLUS loans in the aid package is a good idea --- that is a ploy to make it look like the school met the EFC. But a person who has read up on financial aid should be able to understand that. Actually, it's good to include supplemental explanations of aid types & how they work with a financial aid letter --- but not IN it, as it would get pretty confusing.</p>
<p>By the way, what part of "LOAN" do people have trouble understanding?? I have a hard time believing people don't know that a loan has to be repaid.</p>
<p>In the interest of full disclosure, I should admit that I was a financial aid director 18 years ago. :)</p>
<p>I just re-read my post & I sound pretty snotty --- sorry! But I do think people should read up on aid & educate themselves. If colleges try to include everything in the aid letter, it really would get more --- not less--- confusing. IMHO!</p>