The next part of the financial aid process begins when the student receives financial aid award letters from their schools of interest. Award letters indicate how much funding and what types of aid a student is eligible to receive from each school.

An award letter is typically made up of the following sections:

Financial calculations: A summary of the cost of education for that school is calculated, including tuition and fees, books and supplies, living expenses, transportation and personal costs. The cost of education will be different for each school.

Expected Family Contribution (EFC): The EFC is the amount the federal government has determined that the student and/or their family can contribute toward the cost of education. This amount should be the same at each school.

Financial need: This figure reflects the cost of education minus the EFC. This figure reflects a student's eligibility for need-based financial assistance at each school. Financial need varies from school to school because the cost of education varies by school.

Financial awards: This section of the award letter will indicate the types of aid for which the student is eligible. This may include:

• Grants from the federal or state governments or the school
• Scholarships
• Eligibility for Federal Work-Study – money earned by working during the course of the year
• Federal or private student loans – borrowed money that must be repaid after leaving school

Understanding the Award Letter

Within two weeks of receiving an award letter, a student should inform the school whether they are accepting or declining the awards. Students don't need to accept everything offered, but if they decline anything, the school typically will not replace it with other types of aid. Occasionally, work-study and loans are negotiable, but grants and scholarships are not.

If a student or their parents' financial circumstances have changed since the completion of the FAFSA, it's very important to inform the financial aid department.

Items to Consider

• Are the grants and scholarships in the award letter renewable? What are their terms and conditions? If they are renewable, what is the renewal process? If not, what financing options can be substituted for them after the first year of college?
• If the college can not meet a student's total financial need, can this amount be earned or will the student require a loan?
• How much loan aid is offered? What are the terms and conditions? What is the interest rate? Are there any deferment, cancellation, or forgiveness policies?
• If work-study has been awarded, is this a realistic option?
Once a student has decided which school they will attend, the other schools to which they applied should be notified so that they can offer admission and financial aid to other eligible applicants

The PNC Education Loan Center offers a variety of loans that can be used to help finance the Expected Family Contribution. Send us an
e-mail or contact our customer service center to speak with an education loan specialist at 800-762-1001, Monday through Friday from 8am to 6pm Eastern time.