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Financial aid offers · Comparing packages · Aid decisions
Aid offer letters are designed to make large numbers look attractive — but not all dollars in the package are equal. Grants are free money; loans are debt you repay with interest; work-study is a job you have to find. This guide shows you how to read any aid offer, compare packages honestly across schools, and when to appeal for more.
Critical distinction: "Total aid" includes loans. "Free money" is only grants and scholarships. These two numbers are not the same thing. The only number that reduces what you actually owe is grants + scholarships.
Types of aid — what each one means
Grants
Free moneyYou never repay grants. They come from the federal government (Pell Grant), your state (Arizona state grants), or the school (institutional grants). This is the only number that directly reduces what you owe.
Watch: Check whether grants are renewable — some institutional grants require a minimum GPA each year. Losing grant eligibility in year 2 is a major financial surprise.
Scholarships
Free moneyScholarships are free money — from the school (merit scholarships), external organizations, or state programs. Like grants, they reduce what you owe.
Watch: Institutional merit scholarships are often renewable but have GPA and credit hour requirements. External scholarships may have renewal conditions set by the donor organization.
Work-Study
You earn itWork-study is not money the school gives you — it's eligibility to work on campus or for approved employers and earn wages. The amount listed is the maximum you can earn, not a guaranteed deposit.
Watch: You must find a work-study job. The money is not automatic. Accepting work-study does not mean you'll receive that amount unless you actually work the hours.
Subsidized Loans
You repay thisThe government pays the interest while you're in school. You begin repaying after graduation. Subsidized loans are offered based on financial need.
Watch: These are still loans. Accepting them is optional — you can accept only what you need, or none at all.
Unsubsidized Loans
You repay thisInterest accrues from Day 1, even while you're in school. If you don't pay interest during school, it capitalizes (adds to your principal) when repayment begins.
Watch: Borrow as little as possible. The difference between what you need and what you're offered is not money you need to accept.
Parent PLUS Loans
Parent debtParent PLUS loans are in your parent's name — they repay them, not you (unless they explicitly agree to transfer the obligation). The interest rate is higher than undergraduate federal loans.
Watch: This is separate from your aid. Don't conflate PLUS loan amounts with your own financial aid package. Many letters include PLUS offers to make the "total aid" number look larger.
6 steps to compare aid packages across schools
Calculate real out-of-pocket cost for each school
Real out-of-pocket = Cost of Attendance (COA) minus grants and scholarships ONLY. Do not include loans in this calculation — loans reduce the bill but not the cost. The net price is what you'll actually spend (tuition + fees + room + board + books + personal expenses − grants − scholarships).
Compare across all your acceptances on the same basis
Build a spreadsheet: one column per school, one row for each component (grants, scholarships, work-study, sub loans, unsub loans, PLUS). Put the net price (after grants+scholarships only) at the bottom. Now you're comparing apples to apples.
Check grant and scholarship renewability at each school
Year 1 aid is not always Year 2 aid. At ASU, the New American University Scholarship requires a specific GPA to renew. At UA, the Wildcat Excellence Award has similar requirements. A school that offers $20K in year 1 but requires a 3.5 GPA you're not confident about maintaining is a risk.
Look at the loan amount, not just the grant amount
A package with $15K in grants and $12K in loans is worse than a package with $10K in grants and $5K in loans — even though the first has a higher headline aid number. Total loan offer across 4 years is the number that matters for your financial life after graduation.
Request your Expected Family Contribution (or SAI) and compare it to the gap each school leaves
Your SAI is the amount the government says your family can contribute. A school that meets 90% of demonstrated need with grants is a better deal than a school that meets 60% with a mix of grants and loans, even if the grants look similar.
Appeal if you have grounds
If your family circumstances changed after you filed FAFSA, if you have a competing offer from a comparable school, or if you received a new external scholarship, you have grounds to request a reconsideration. Most schools have a formal appeal process. Submit with documentation within 3–6 weeks of receiving the award.
5 financial aid comparison mistakes
Comparing total aid packages instead of net price
A $40K total aid package that includes $20K in loans is worse than a $30K package that is all grants. Always calculate grants+scholarships only and subtract from COA.
Accepting all loans offered
You can accept part of a loan offer or none. Borrow only what you genuinely need for the academic year, not the maximum offered.
Ignoring the work-study offer reality
Work-study is eligibility, not guaranteed money. If you don't find a job, you get nothing. Don't count it in your net cost calculation unless you have a specific job lined up.
Forgetting to check 4-year cost, not just year 1
Some schools offer strong year 1 aid that decreases in later years. Ask: "Is this aid renewable for all 4 years, and what are the conditions?" A school that's great in year 1 but worse in years 2–4 has a higher total cost than it appears.
Not comparing to in-state public university net price
For most Arizona families, the total cost of ASU, UA, or NAU after aid beats many private schools that appear to offer more money. Always include the in-state public option in your comparison.