Understanding College Financial Aid Offers

Getting accepted into college is exciting, but so is receiving your financial aid offer! Whether it’s student loans, scholarships or grants, there are plenty of assistance programs for prospective students.

To find the best student aid option, it’s important to learn about the different types of financial aid offers. Here are some ways you can maximize your eligibility for student loans, private loans, work-study and other types of financial aid.

It Starts With FAFSA

Financial aid offers are based on the information submitted through your Free Application for Federal Student Aid (FAFSA) application. Your offer will outline the following:

• Federal grants and student loans
• College scholarships and grants 
• Work-study programs and opportunities

Here’s a breakdown of each type of offer. 

Federal Grants and Student Loans

Student loans are a form of financial aid that typically incur interest and must be paid back. A grant is more like a gift—you don’t have to pay it back.

Federal government grants are available for students attending career schools, community colleges and 4-year colleges and universities. Most federal grants come from the US Department of Education. These might include TEACH (Teacher Education Assistance for College and Higher Education) Grants, Iraq and Afghanistan Service Grants, and FSEOG (Federal Supplemental Educational Opportunity) Grants or Federal Pell Grants.

Grants usually have specific financial aid eligibility requirements. For instance, Iraq and Afghanistan Service Grants are for those whose parent or guardian died because of service performed in these countries and were under 24 or enrolled in college at the time of their death. Another federal grant is the Post 9/11 GI Bill, which aids Veterans and Veteran dependents.

A good source of grant and loan funds is the nonprofit CSS (College Scholarship Search) Profile. This gives first-year students access to more than $10 billion in non-federal scholarship aid.

Student loans are more common than grants. They typically incur interest and must be paid back. Make sure to consider all student loan borrowing options from both federal and private organizations.

Institutions like the Department of Veterans Affairs (VA) also offer additional resources for students. Dependents of veterans who are permanently disabled due to a service-related condition or died while on Active Duty may be eligible for education opportunities through Survivors and Dependents Assistance.

College Scholarships and Grants

Many schools’ financial aid departments offer academic scholarships and grants. These are often highly specific, pertaining to students who are socially or economically disadvantaged, have a disability or another unique circumstance. Merit-based scholarships also fall into this category. 

There’s also need-based financial aid. These offers are for students that have demonstrated financial need and can’t afford college. Most of these grants and scholarships are funded by donors or the school itself. 

Federal Work-Study Program and Opportunities

Federal work-study programs offer students part-time jobs to help students offset college costs. The jobs offered are typically university staff positions.

These opportunities may be preferable for certain students. Many international students on student visas aren’t allowed to work unless in a work-study role. This allows them to gain work experience alongside educational opportunities.

Receiving Your Financial Aid Offer 

Your offer may include various forms of financial aid. Knowing the different types of student loans, grants and scholarships can help you avoid financial strain.

Some of these offerings can include Direct PLUS loans. These are federal loans available to qualified parents or graduate students. A Direct PLUS Loan is commonly referred to as a parent PLUS loan when made to a parent, and as a grad PLUS loan when made to a graduate or professional student. If accepted, repayment begins immediately. Their interest rate and fees are generally higher than other student loans.

Grants and scholarships typically don’t cover all education expenses. Tuition, books, cost of living, personal expenses and more must be considered. This will help determine whether you need additional funding options.

Your offer will also include a Student Aid Index (SAI) score. This is a formula-based number ranging from -1500 to 999999. Your SAI score helps determine how much financial support you may need. A negative SAI indicates you have a higher financial need. Schools use this to calculate how much financial aid you’re eligible to receive.

Choose the Offer That Works for You 

You don’t have to accept any offer “as is.” And you don’t have to borrow the full amount offered. You only have to borrow what you need. Many schools and financial programs are willing to negotiate terms.

You can also ask schools to consider how you may be in financial need. There may be factors that weren’t covered in your award letter that would qualify you for more financial aid. These could include a job loss, the death of a parent or spouse, or a large medical expense.

Comparing Offers

If you receive multiple offers and want to compare them, the National Association of Student Financial Aid and Administrators (NASFAA) comparison worksheet can help. This resource helps students review aid offerings and see the differences side-by-side.

If You Don’t Understand, Ask

Understanding financial aid offers is crucial for your education. Make sure you know all the details before you apply for and accept an offer. You can always call your school’s loan officer or visit the financial aid office if there are any questions.

If your financial aid package doesn’t cover what you need, Navy Federal could help you make up the difference with a private student loan.^{Footnote 1}