Interpreting Financial Aid Offers
Sample Award Packages
Let's look at some numbers. When the school provides the award letter, it usually contains your cost of attendance (COA), which is not your school bill, but is a cost estimate of what your tuition and fees, books and supplies, and related living expenses might be over the course of the academic year. The award letter typically identifies your expected family contribution (EFC) as well, which is the amount of your and your family's own funds that a federal formula determines you should be able to pay toward your educational expenses in the COA. The difference between the COA and EFC is your financial need, which may also be in your notice.
The award letter itemizes what financial aid types and amounts that are being offered to you. Knowing what those types of aid are is very important, especially when you are being offered student loans that must be repaid.
The following examples will give you an idea of what your financial aid award may offer for an ordinary nine-month academic year:
Example 1: Dependent Freshman Student with Very High Financial Need
| Cost of Attendance (COA) | $12,240 |
| Expected Family Contribution (EFC) | $0 |
| Financial Need | $12,240 |
| Federal Pell Grant | $4,310 |
| Federal Supplemental Educational Opportunity Grant | $1,000 |
| Utah Student Grant | $1,500 |
| Federal Work Study | $1,800 |
| Federal Perkins Loan | $3,000 |
| Recommended Subsidized Stafford Loan | $630 |
| Total Financial Aid Package | $12,240 |
Example 2: Independent Freshman Student with Moderate Financial Need
| Cost of Attendance (COA) | $12,240 |
| Expected Family Contribution (EFC) | $3,229 |
| Financial Need | $9,011 |
| Federal Pell Grant | $1,060 |
| Federal Supplemental Educational Opportunity Grant | $1,000 |
| Utah Student Grant | $1,500 |
| Federal Work Study | $1,800 |
| Recommended Subsidized Stafford Loan | $3,500 |
| Recommended Unsubsidized Stafford Loan* | $151 |
| Total Financial Aid Package | $9,011 |
*Student could also borrow for the EFC for a total of $4,000 (maximum for an independent freshman with a full subsidized Stafford Loan too)
Example 3: Independent Freshman Student with Low Financial Need
| Cost of Attendance (COA) | $12,240 |
| Expected Family Contribution (EFC) | $6,842 |
| Financial Need | $5,398 |
| Institutional Grant | $500 |
| Federal Work Study | $1,800 |
| Recommended Subsidized Stafford Loan | $3,098 |
| Total Financial Aid Package | $5,398 |
Example 4: Dependent Freshman Student with No Financial Need
| Cost of Attendance (COA) | $12,240 |
| Expected Family Contribution (EFC) | $14,556 |
| Financial Need | $0 |
| Scholarship | $1,500 |
| Possible PLUS Loan* | $10,740 |
| Total Financial Aid Package | $12,240 |
*Parent can still borrow an amount equal to the COA - financial aid awarded.
