DEFINITION of 'Award Letter'

Documentation sent from a college or university to the student that details for how much financial support the student is eligible. The award letter is sent following the student's submission of the Free Application for Federal Student Aid (FAFSA) and application to attend college or university.

BREAKING DOWN 'Award Letter'

Award letters help families budget and plan for college expenses. The award letter outlines the type and amount of all financial aid that is offered to the student, including grants (such as Pell Grants and Federal Supplemental Educational Opportunity Grants), loans (for instance, Stafford and Perkins Loans), scholarships and any work-study eligibility.


Unless otherwise specified, the award letter pertains only to the upcoming school year. Upon receipt of the award letter and deciding which school to attend, students must inform the selected school how much of the award (financial aid) will be accepted.

RELATED TERMS
  1. Expected Family Contribution - ...

    The amount of money that a student's family is expected to contribute ...
  2. Student Debt

    Money owed on a loan taken out to pay for educational expenses. ...
  3. Perkins Loan

    A loan program that provides low-interest student loans to undergraduate ...
  4. Student Visa

    A special endorsement that is added to a passport that governments ...
  5. Education Loan

    Money borrowed to finance education or school related expenses. ...
  6. Student Loan Interest Deduction

    Student Loan Interest Deduction is a tax deduction for interest ...
Related Articles
  1. Personal Finance

    A Beginner's Guide to Getting Student Loans

    Follow these 5 steps and you'll be well on your way to knowing which loans to go after – and which college really offers you the best deal.
  2. Personal Finance

    How to Game the CSS/Financial Aid PROFILE® Application

    It's more work than the FAFSA, but you need it to unlock private student aid from roughly 280 schools and scholarship programs.
  3. Financial Advisor

    Helping Clients Weigh College Financial Aid Offers

    Now's the time for reviewing financial aid offers, which can often be confusing. Here are a few tips to help clients make sense of them.
  4. Personal Finance

    A Quick Guide to How FAFSA Loans Work

    If you’re headed to college and want to know how to apply for financial aid, this is where you need to start.
  5. Personal Finance

    College Cost Reduction Act Helps Students Meet Payments

    This legislation can help families pay college costs and reduce student debt.
  6. Personal Finance

    5 College Scholarships You Could Qualify For

    Here are some scholarships that may be attainable for those of us who aren't star athletes or honors students.
  7. Personal Finance

    What I Learned During the College Selection Process

    Think about your child's future career path and the various ways to pay for college before deciding.
  8. Personal Finance

    Do You Want to Pay Less for a College Education?

    Planning ahead is key to having less student debt after college.
  9. Personal Finance

    The Best Colleges for Financial Aid: Public or Private?

    What are the best colleges for financial aid? Are the much cheaper state schools a better choice than their private-school counterparts? Not necessarily.
  10. Personal Finance

    How to Up Your Chances of Getting Student Aid

    Getting the best possible package for a college fund depends on minimizing assets and maximizing the energy you use to find possible funding sources.
RELATED FAQS
  1. What are the most common sources of funds given in a financial aid award letter?

    Read this article to learn about the four most common sources of funding given in a financial aid award letter sent to a ... Read Answer >>
  2. What factors do schools consider when awarding financial aid?

    Learn how schools award financial aid and student loans for you and your family. Colleges consider many variables, including ... Read Answer >>
  3. Who is eligible to take out federal student loans?

    Fill out the Free Application for Federal Student Aid every year to determine eligibility for federal aid, including student ... Read Answer >>
  4. Should I apply for student loans if I haven't finished applying for scholarships ...

    Apply to a variety of financial help sources by submitting a Free Application for Federal Student Aid form, which will be ... Read Answer >>
Trading Center