Reading a financial aid offer

You'll need

• Each school's aid offer
• A calculator, or the CFPB's free comparison tool

Do it like this

1. Find the full cost, not just tuition: tuition and fees, housing and meals, books and supplies, and transportation (CFPB). Schools call this the cost of attendance (Federal Student Aid).
2. Circle the grants and scholarships. A Federal Pell Grant, unlike a loan, generally doesn't have to be repaid (Federal Student Aid). Read the rules for each award so you keep it (CFPB).
3. Treat work-study as a paycheck, not cash up front. Federal Work-Study gives part-time jobs to students with financial need, and undergraduates are paid by the hour, at least the federal minimum wage (Federal Student Aid).
4. Mark every loan as debt. You don't have to accept all the loans you're offered, or the full amount (CFPB).
5. Full cost minus grants and scholarships is what you'll cover with savings, work and loans. Compare that number across schools. The CFPB's Paying for College tools walk you through it (CFPB).
6. Call the financial aid office with questions. Helping you is their job, and asking questions won't put your funding at risk (CFPB).

If it doesn't work

• Your family's finances changed a lot since the tax year on the FAFSA? Contact the financial aid office at your school and explain what changed (Federal Student Aid).
• Still short at the start of the year? Ask the financial aid office about ways to lower the amount due up front (CFPB). Look for more scholarships too, and read Scholarships and scholarship scams before you pay anyone for help.
• Thinking about a private loan? Students without a credit history are usually asked to have a family member cosign (CFPB). Rates and fees are generally lower on federal loans (Federal Student Aid).

Good to know