After you are accepted for admission, each college listed on your FAFSA will send an electronic or paper letter describing the financial aid being offered, including state, federal and institutional aid.
Thoroughly compare all letters. Make sure you understand how much assistance is from grants or scholarships (which do not have to be repaid), from work-study (which you must earn), and from loans (which must be repaid). Also make sure you understand the total amount you or your family will be expected to pay.
Financial Aid Offer Comparison Worksheet
Terms will vary—some awards renew automatically from year to year, some renew under certain conditions (such as maintaining a required grade point average), and others are one-time awards.
Look for important dates and deadlines. All financial aid offers will have a deadline for you to accept or decline the offer. Also, the school might require additional or updated information (such as a high school transcript) before finalizing your financial aid offer.
Definitions
Cost of Attendance = price before financial aid
EFC = expected family contribution
grant or scholarship = free money that you will not have to repay
loan - money that you will repay with interest
work-study = money you earn from a job that is part of your financial aid package