Financial Aid Offers

Once a student has been admitted to a college, the next question for both the student and parents is — “How are we going to pay for it?” That’s where the financial aid offer (sometimes called an award letter) comes into the college planning process.

What is a Financial Aid Offer?

Receiving a financial aid offer is an exciting milestone—it’s one of the final steps before choosing where to attend college. Financial aid offers help you understand what a college will cost after scholarships, grants, work-study, and student loans are considered.

Every college you are admitted to will provide its own financial aid offer, and the details can vary from school to school. Review an annotated sample financial aid offer to learn how to identify scholarships, grants, loans, and your estimated out-of-pocket costs.

View Sample Financial Aid Offer

REMEMBER: Don’t let the sticker price discourage you. Many students receive scholarships, grants, and financial aid that significantly reduce the cost of attending South Dakota’s public universities and technical colleges.

Five Steps to Evaluating Financial Aid Offers

Comparing financial aid offers can help you make a confident college decision. Follow the steps below to understand the true cost of attendance and determine which school offers the best overall value.

Click each tip to expand and learn more.

Before making a decision, gather all of your financial aid offers in one place. Comparing offers side-by-side can help you identify differences in scholarships, grants, loans, and total costs.

Helpful Tip: Use a comparison worksheet or tool, such as Mapping Your Future’s Scholarship Tracking Sheet, to organize and compare your offers. (Use the “Comparing Cost of Attendance” tab.)

Review each financial aid offer carefully to ensure the information is accurate. Verify items such as:

  • Dependency status (dependent or independent)
  • Intended major or academic program
  • Housing selection (on-campus, off-campus, or living at home)
  • Enrollment status (full-time or part-time)

Incorrect information can affect both your Cost of Attendance and the amount of financial aid you receive. Contact the Financial Aid Office if something doesn’t look right.

Financial aid offers typically include a Cost of Attendance (COA), which is an estimate of what it will cost to attend a college for one academic year.

The COA may include:

  • Tuition and fees
  • Housing and meals
  • Books and supplies
  • Transportation
  • Personal and miscellaneous expenses

Remember: The Cost of Attendance includes both direct costs paid to the college and indirect costs that you may pay out of pocket.

(Helpful Tip: A higher Cost of Attendance doesn’t necessarily mean you’ll pay more after financial aid is applied.)

Once you’ve identified the Cost of Attendance, subtract grants, scholarships, and other aid that does not need to be repaid.

Your remaining balance is your estimated out-of-pocket cost—the amount you’ll need to cover through savings, work-study earnings, payment plans, or student loans.

This is often the most important number to compare when evaluating multiple colleges.

Estimated Out-of-Pocket Cost = Cost of Attendance − Grants − Scholarships − Other Gift Aid

Not all financial aid is the same. Grants and scholarships generally do not need to be repaid, while loans do.

Before accepting aid, consider:

  • Which aid must be repaid
  • Any requirements associated with scholarships or grants
  • Your comfort level with borrowing
  • Your estimated monthly loan payments after graduation

You are not required to accept all of the aid offered to you. Choose the combination of aid that best fits your financial goals and circumstances.

Related Resources

FAFSA®
Cost of College
Paying for College Video Series
Financial Aid
Mapping Your Future

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