So, your student got into college—congrats! But now you’re staring at a financial aid letter that looks more like a puzzle missing a few pieces. Grants, loans, work-study… and where exactly is the part that tells you how much you are actually paying?

You’re not alone. Colleges aren’t exactly known for making financial aid letters easy to read. But don’t worry—we’re here to help you decode them like a pro.

Start With the Total Cost of Attendance (COA)

First things first: Find the college’s Cost of Attendance (COA). This includes tuition, fees, room and board, books, and sometimes a generous estimate for pizza money (aka personal expenses). If it’s not on the letter (annoying, but common), head to the college’s website or use College Navigator to track it down.

Understand the “Free” Money vs. Loans

Financial aid letters like to lump everything together—grants, scholarships, loans—as if it’s all the same kind of “help.” Spoiler alert: It’s not.

Grants & Scholarships:   This is the money you don’t have to pay back. 🎉

Loans:   This money must be paid back, often with interest. Check if the loans are subsidized (the government pays interest while your student is in school) orunsubsidized (interest starts racking up right away).

Work-Study:   If listed, this is money your student can earn through a campus job—but it’s not guaranteed income upfront.

Calculate Your Net Price

Here’s the golden number:  Net Price = COA – Grants/Scholarships

This is what you’re really paying. Ignore the loans and work-study when calculating this—focus on what comes out of your pocket.

Example:

– COA: $60,000

– Grants/Scholarships: $25,000

– Net Price: $35,000

That $35K is what you’re on the hook for this year.

Don’t Forget the Hidden Costs

Some schools list only direct costs (tuition, room, board) but skip extras like books, personal expenses, or travel. Make sure to factor in everything so there are no nasty surprises come fall.

Compare Apples to Apples

When looking at multiple aid letters, use the Net Price for each to compare them fairly. One college might look generous because they offered more loans, while another offered more scholarships. Big difference.

Know You Can Appeal

Did your financial situation change? Or did another college offer a better package? You can often appeal for more aid. Colleges don’t advertise this, but it’s worth a shot.

Final Thoughts:

Reading financial aid letters might not be fun, but it’s crucial. Understanding the real numbers can save your family from unexpected debt and help your student start their college journey on solid financial ground.

Got questions? Reach out—we love helping families make sense of the fine print. And remember: it’s not about finding the cheapest school, but the one that offers the best value.