Guide to comparing college financial aid packages

Navigating college financial aid requires distinguishing between gift aid and self-help aid. Gift aid, which includes scholarships and grants, does not require repayment and directly reduces the total cost. In contrast, self-help aid consists of student loans and work-study programs, which must be repaid or earned through employment.

Because universities use non-standardized formats for award letters, families should focus on the net price rather than the total award amount or the sticker price. The net price is calculated by subtracting total gift aid from the total cost of attendance, which includes tuition, fees, housing, food, and estimated indirect costs like books and transportation.

When comparing offers, it is essential to verify if scholarships are front-loaded or if they renew for the entire duration of the degree. Additionally, families can explore specific opportunities through Historically Black Colleges and Universities (HBCUs) and the UNCF, or consider filing financial aid appeals if the initial package does not meet their needs.