Financial aid award letters: scholarships, grants, school loans and more

For many people, the cost of college, including school loans, is one of the top considerations when choosing a school. Financial aid award letters, which include information about school loans, grants and other financial aid, are helpful when estimating the cost of attendance and how much you can afford.

The basics

Each award letter should list a cost of attendance figure that includes tuition, fees, room and board, books, transportation, computer costs and other personal expenses. If it doesn't, you should contact the school's financial aid office to get an estimate. This figure will help you establish a budget and figure out the amount of federal and possibly private school loans you may need, after you seek scholarships, grants and work-study programs.

School loans

Keep in mind that school loans have to be paid back. You may see both parent and student school loan options in your letter, so make sure you understand the different choices and the pros and cons of each. There are a variety of school loans available to fit your needs, including federal and private loans.*

Note: You should consider exhausting all federal student loans, grants and other forms of financial aid before you apply for a private student loan.

Grants and scholarships

These awards are offered to help reduce your cost of attendance and will not have to be paid back. Grants and scholarships should come before school loans as a way to finance your education. Many scholarships from your school are merit-based, so make sure you know if there is a certain GPA you must maintain to keep the scholarship.

Work-study

Some schools participate in the federal work study program, which provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses. The average federal work-study job requires a 10- to 15-hour commitment per week. Work-study is an option that should be explored before taking out a school loan.

Expected Family Contribution

Finally, the last item to consider is the Expected Family Contribution: the amount the school expects your family to provide. This figure is determined by the information you provide on the Free Application for Federal Student Aid (FAFSA).

Making a decision

When comparing financial aid award letters, it's in your best interest to look for a school that covers more of the cost of attendance with grants and scholarships than they do with school loans.

If there's a financial gap, there are many ways to cover the expenses. Private school loans can help fill the void when grants, scholarships, federal loans and other financial aid are not sufficient to cover the entire cost of attendance.*

Learn more about your private school loan options at ChaseStudentLoans.com.

*Important Information: Private loans, like the Chase Select loan, can be used when federal loans, grants and other forms of financial aid are not sufficient to cover the full cost of education.

Chase Select loans are subject to credit approval, receipt of a completed and signed loan application/promissory note and self-certification form, verification of application information, acceptance of loan terms, and school certification of loan amount and student’s enrollment at a Chase Select-participating school.

Chase currently services its Chase Select loans and does not sell them to another lender.

This information was current as of 07/01/2011 and is subject to change. Contact Chase for current product information.