Students & Scholarships
Understanding Financial Aid Offer Letters
Let's break down the cost!
What is a Financial Aid Offer Letter?
A Financial Aid Offer Letter is the amount of financial aid a school offers to cover the cost of attending the school.
When do students receive their Unofficial Offer Letters?
Four-year schools: Late March – Mid April
Community College: Around May/June
*The financial aid and FAFSA delays have pushed back the release of many offer letters for the 2024-2025 year until late April. *
Where can a student view their offer letter?
Unofficial Offer Letters can be viewed in a student’s school portal in the financial aid section, sometimes the letters are mailed as well.
When are the Offer Letters Final?
Students receive an “unofficial” offer letter shortly after being admitted. Verification, missing documents, final budgets, and other factors may slightly change a student’s financial aid offers. A student’s final offer letter is generally given in June/July or before the start of the school year.
Is the award amount the same for all four years?
The student will receive a new offer letter every year. Changes in income or other factors may impact financial aid offers in the future. Make sure you are applying to FAFSA or CA Dream Act every year to continue receiving financial aid.
How is my financial aid determined?
Your financial aid package is based on your financial need. Financial need is Cost of Attendance minus SAI (Student Aid Index) calculated by your CADA/FAFSA.
Wait! What Happens if I haven’t received my financial aid letter yet?
- Check your student portal for any items that are missing or need to be completed
- Complete Webgrants for students: Make sure you have the correct school of attendance
- Make sure that you have your full legal names on all applications and documents on FAFSA/CADA, school and, other submitted forms
- For California Dream Act Applicants, make sure any additional required AB540 forms are submitted
Double check that you have listed the correct schools on FAFSA/CADA - Lastly, call your Financial Aid office to get the most recent information on the status of you offer letter
What is Financial Aid Verification?
Financial Aid Verification is when your school(s) ask for additional documents (ex: W2 forms) to verify the information you reported on your FAFSA/CADA application.
How do I know if I’ve been selected for Financial aid Verification?
You will know if you need to submit additional documents when your college(s) add tasks to your student portal, financial aid portal, or email (personal or college).
How can I complete FAFSA Verification?
Make sure you gather supporting documents:
- W-2’s or Tax return Non-Filer form
- Household Verification form
- IRS Tax return: a document that shows the financial information for the requested tax year. It is a summary of personal and financial information. You can order a IRS Tax return from the IRS website.
What is on your Financial Offer Letter?
Different Types of Aid Awarded:
- Gift Aid: Money awarded to a student that does not need to be paid back.
Examples: Pell Grant, Cal Grant, 10,000 Degrees scholarship - Work Study: Money a student can earn through a campus job. They must work in order to receive the money.
Example: Job at the library or the book store
(Students must apply for these part-time jobs, it is recommended that students apply early. Work study jobs are flexible with students and holiday calendars) - Loans: Borrowed money that DOES need to get paid back after graduating.
Example: Subsidized and unsubsidized loans, Parent Plus Loan, Dream Loan
What is the Cost of Attendance (COA)?
It is the total cost of attending a college. This total amount includes additional college related expenses that are not covered by tuition and fees. Example: Tuition, Transportation, Course Materials …
What is a Fixed Direct Costs Vs Flexible Direct Costs?
A fixed direct cost is non-negotiable which appears on your schools billing system, and you are typically charged by a specific deadline.
Example: Tuition
A flexible direct cost can be reduced or increased based on student preferences and needs which appears on your schools billing system, and you are typically charged by a specific deadline. Example: Room & Board & Meal plans
What are flexible indirect Costs?
A flexible indirect cost can be reduced based on student preference and needs, these don’t appear on your school bill. These costs typically come up throughout the year. Example: Transportation, Course Materials, Personal Care, Technology
What are the differences in the loans that are offered in Financial Aid Packages?
Subsidized Loan:
- Interest (the price you pay to borrow money) does not accumulate while enrolled.
- Repayment will begin 6 months after graduation or if the student drops to less than part-time.
Unsubsidized
- Interest does accumulate while enrolled
- Repayment begins 6 months after graduation or if the student drops to less than part-time
Parent Plus Loan:
- Repayment begins once the loan is fully disbursed.
- A request can be made to defer repayment if a student is enrolled at least half-time and an additional six months after a student graduates their program, leaves school, or drops below half time enrollment.
DREAM Loan (UC & CSU)
For students that are undocumented AB540 students, funded by state and UCs. The DREAM Loan interest rate is the same as the Federal Direct Subsidized loan. Interest will not accrue when you are enrolled at least half time.
Private Loans:
Offered by banks, credit unions, state agencies, or a school. Private loans are generally more expensive than federal loans, they have terms and conditions that are set by the lender.
Important Reminders about Loans:
- You don’t need to accept the whole loan, you can accept portions of the loan offered throughout the academic year.
- Plan long term for repayment- know when payment will be due and what your payment amount will be.
- Make sure you have prioritized all other financial aid options of scholarships, grants, and federal student loans before considering a private school loan.
- Federal loans usually have lower interest rates, less borrowing requirements, and more repayment options. Institutional loans offer better terms than private loans.
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