You filed the , you applied, and now a shows up. It tells you what aid a school is offering. The problem is that many of these letters are confusing on purpose. They can make a school look more affordable than it is by mixing very different kinds of money together.

Start with the

Every letter should be measured against the cost of attendance: the school's full yearly price, including tuition, fees, housing, food, books, and other expenses. This is the real number to beat. If the letter only shows tuition, find the full cost of attendance so you're comparing apples to apples.

Sort the aid into two piles

This is the most important move you can make. Go line by line and split every item into two groups:

  • Gift aid: and you never repay. This is the good stuff.
  • Self-help aid: loans you pay back, and you earn by working a job.

A loan listed on the letter can look like the school is giving you money, but it isn't. It's money you'll owe later, with . Once you separate the piles, the letter starts telling you the truth. (If the categories themselves are new to you, Grants vs. Loans vs. Scholarships is the quick primer.)

Tip
Watch for a or other loans listed as 'aid.' They lower the number you pay today, but they raise what your family owes tomorrow. Count them as cost, not help.

Find your real out-of-pocket cost

Now do one piece of simple math. Take the cost of attendance and subtract only your , the grants and scholarships. What's left is roughly what you'll need to cover with savings, work, or borrowing. That number, not the school's , is what you should compare across schools.

Two schools can have the same 'after-aid' total, but one fills the gap with grants and the other with loans. The one with more gift aid is almost always the better deal, even if the headline number looks the same.

You're allowed to ask questions

If a letter confuses you, call or email the school's financial aid office and ask them to walk you through it. And if your family's money situation has changed (a lost job, a big medical bill), you can ask them to review your offer. People do this all the time, and asking costs nothing.

Once you've found your real cost at each school, you may still see a gap between what you can pay and what aid covers. That gap has a name, and understanding your unmet need is worth doing before you decide.