Weighing Your College Offers

Breaking down the language

There's no one-size-fits-all for these financial aid offers, so don't be surprised or worried by the layout, numbers, or terms used. Although different schools will use different terms, most financial aid offers include some or all of the following:

The one thing they'll have in common is that they may include any or all of the following:

• Grants: free money provided by colleges, state agencies, and the U.S. Department of Education
• Scholarships: student aid offered by different groups, organizations, and even individuals
• Loans: borrowed money that you'll need to repay with interest
• Work-study: an on-campus job that requires a certain number of hours each semester. (To be considered, you’ll have to choose work-study as an aid option when filing your FAFSA.)

You’re not alone if you find it hard to interpret your offer.  That’s where VSAC comes in. You can view or download our financial aid vocabulary (PDF) to become more confident when reading your offers. And if you still have questions, you can contact VSAC and we can go through the offer together. 

WHAT'S MERIT AID?

Merit aid is free money from a school. It isn't based on financial need. Instead, it is given to students who have academic, athletic, or artistic skills. It could also be given to students who meet certain traits that the school is looking for.

Understand the differences in your offers

It’s unlikely that you’ll receive two financial aid offers that are exactly alike. Two of the most common areas that create confusion: the differences in how schools describe their free aid and student loans. 

Vermont Grant

You might see this listed as the: 

• Vermont grant (because the money comes from the Vermont Legislature)
• VSAC grant (because VSAC administers the grant and students must apply for it through VSAC)
• Incentive grant (the name of the specific grant for full-time students)

These aren't 3 different grants; they're just 3 different ways that schools might refer to Vermont's state grant.

Federal Student Loans

You might also see different names for student (and parent) loans. Loan program names have changed many times over the years, and each school’s language for referencing federal loans is often inconsistent. Just know that:

• Student loans are currently called Federal Direct loans and may appear as DL Sub, DL unsub, Direct Loan – unsub, sub.
• Schools might list loans as Stafford loans.
• You might even see them listed as Ford loans.
• PLUS loans are federal loans typically taken out in the parent's name.

If you have any questions about the types of aid on your financial aid offer, call the school's financial aid office to get more clarity. If you’re still confused, contact VSAC so we can work together to answer any lingering questions.

Spot the differences

In the two examples here, the same state grant is listed with different names (Vermont grant and VSAC grant). The federal loans are also the same, even though the first offer calls them Direct loans and the second offer calls them Stafford loans.

Can you spot another difference in the way the 2 examples refer to the same federal grant?

Listen to VPR’s Navigating College Financial Aid Letters podcast featuring a review of 4 college acceptance offers 

Federal Direct Loan vs PLUS Loan

Federal Direct loans are offered by the U.S. Department of Education to eligible students and parents to help cover the cost of college or career training. These loans come with fixed interest rates and flexible repayment options. There are three main types of Federal Direct Loans: 

1. Direct Subsidized Loans: These loans are available to undergraduate students whose FAFSA application shows they require additional financial support. The U.S. government pays the interest on these loans while the student is in school at least half-time. They also cover the interest during the grace period after leaving school, and during deferment periods.

2. Direct Unsubsidized Loans: These loans are available to undergraduate and graduate students, regardless of their financial status. Unlike subsidized loans, the student is always responsible for paying the interest on unsubsidized loans.

For both loans, students are the sole borrower and responsible for repayment. For all loan offers, you aren’t required to borrow the full amount. We suggest families only borrow what they need.

3. Direct PLUS Loans: This is a loan for parents of students. The parent is the only borrower for PLUS loans and the loan cannot be transferred to the student.  

Like the Direct Unsubsidized Loans, interest will accrue interest once the money is sent to the school.  

Parents, it’s your choice whether or not to borrow some or all of the amount offered. Federal PLUS loans have flexible repayment options, such as deferment during periods of hardship. PLUS loans interest rates may also be higher than available alternatives, unlike federal Direct loans for students. 

Before borrowing the PLUS loan, pause and shop around for a loan with the best rate and other benefits for your situation. Compare VSAC’s latest loan rates compared to common competitors. 

Do you qualify for a PLUS loan?

If your student is offered a PLUS loan, you as the parent will need to submit a separate application in order to determine whether you're eligible. If, as a parent, you're denied a PLUS loan, your student may receive an additional amount of a federal Direct loans.

Once you’ve separated free aid from loans, it’s time to crunch the numbers and get the full picture of your financial aid offers, along with your potential costs. This will help you identify the school that gives you the best deal.

Compare your options

Start by comparing each school’s total cost of attendance (Line 33 in our college comparison tool). If you’ve filled out the entire sheet, row 64 should display the estimated amount your family is expected to pay for each school. Now that you have the numbers, ask yourself these questions:

• Is there a school that offers the best price?
• Does the cost and what that school offers match up to your wish list?
• How much is the difference between your favorite school and the school that offers the best price?
• How long is each financial aid offer valid? One semester or one year?

Two other important questions to consider are which schools are offering you student loans as part of the package, and how much are the loans going to cost you? Since student loans need to be repaid, preparing for those upcoming monthly payments should be on your mind.

Loans should always be the last option to cover your education costs. And if paying out of pocket is your last option for covering those final costs, you're probably going to need a student loan. VSAC’s free My Education Loans guide offers education to students and families so they know their responsibilities when taking out a loan.

Some things to consider when choosing a college

Keep in mind that financial aid packages will probably change yearly. Sometimes that’s a good thing, especially if you’re getting good grades and creating new opportunities to receive additional scholarships and grants. Other times, even with good grades and new connections, you may still need a loan. Part of the education experience is opening new doors, so that as you invest more time into college and career training, you’ll need to borrow less down the road.

If you’re ever uncertain about the length of your student aid offers or want to know the requirements for eligibility once you're enrolled, call the financial aid office for more details.

Additional Considerations:

• Most financial aid is for only 1 year, so filing your FAFSA yearly is necessary and important. Since federal aid changes yearly, filing a FAFSA yearly can open more opportunities for free aid that reduces your overall cost of education.
• If you’re offered a scholarship, find out if it’s only for 1 year or if it automatically renews each year you’re enrolled.
• Changes in your family’s financial situation can also affect your cost of attendance. If your family income is reduced the next school year or you fall under new financial hardships or obligations, you can appeal your financial aid and possibly receive more aid. Likewise, if your family income increases, you may see a decrease in the amount you receive in grants.
• Build in a 3% tuition hike each year you plan to attend. 

Also remember it’s never too late to open a VT529 college savings plan to decrease the amount of money you’ll need to borrow from a student loan.

Still can't decide? Talk to people you trust

Although choosing the best school is your decision to make, you don’t have to decide which college is right for you on your own.

• Discuss your options with people you trust: Talk about your choices with your support team (parents, teachers, family, school counselor) to see if they have any advice.
• Talk to those who’ve gone before you: Contact the colleges’ admissions offices and ask if there are alumni in your area who can meet or talk with you over the phone to answer any questions. You can also join the school’s social media page or visit a college review website like Niche to find out what students have to say about each school.
• Take a campus tour: Planning a trip to visit and get a feel for a school’s energy and the campus environment can also make you more confident in your choice.
• Listen to your instincts: There may not be a perfect school fit, but a good fit and the right choice will look different for you compared to friends. After you’ve compared the numbers, made the right phone calls, and spoken to friends and family, listen to your gut.
• Remember: You can always transfer to another school if you no longer feel like your school is a good fit. 

Making your college decision official

Once you’ve made your decision, you’ll need to:

1. Send your commitment to your college of choice. Be sure to send the following by the school’s deadline (around May 1 for most colleges):
   • Your acceptance of their offer
   • The required deposit
   • A separate acceptance letter for financial aid (if required)
   • Any additional forms or required items (be sure to fill out requested paperwork completely)
2. Notify the colleges you won’t be attending. It isn't required, but it will allow the school to offer your spot to another student who may be on the waiting list.
3. Begin researching loan options. Tuition bills are typically available in July. Your school will handle the financial aid they're offering and will provide instructions for borrowing federal Direct loans. 

If you need additional funding after accepting the maximum amount in federal student loans, then it may be time to consider private loans. But don't make loan decisions until you learn about education loan basics.

What's left?

Congratulations! In the past year, you've navigated your way through a very difficult process, and you're now looking forward to a new adventure. There are just a few things to remember on the home stretch:

• Keep up your grades. Your college will see your final high school transcripts, so it’s important to keep doing well through graduation. This is especially important if you have been granted a scholarship with specific grade requirements.
• You’ve got mail. Due to federal privacy rules, college info will come to you, not to your parents. Sign in to your college e-mail account and get in the habit of reading all e-mails.
• Attend orientation. Most colleges offer day- or even week-long programs. Sign up early to get the date or program you want.
• Sign up for work–study if it was included in your financial aid offer (the best jobs go first).