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. Free Application For Federal Student ...

    The form that must be completed in order to qualify for any type ...
  2. Federal Supplemental Educational ...

    A program that provides funds for undergraduate students who ...
  3. Expected Family Contribution - ...

    The amount of money that a student's family is expected to contribute ...
  4. CSS/Financial Aid PROFILE®

    Besides the FAFSA, you may need this online form to apply for ...
  5. Student Debt

    Money owed on a loan taken out to pay for educational expenses. ...
  6. Pell Grant

    A program that awards money to eligible undergraduate and, in ...
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. 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.
  4. Personal Finance

    What That Financial Aid Offer Letter Really Says (And How to Get More)

    Yes, you got a college financial-aid offer, but how good is it really? How to understand the fine print.
  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

    6 Sources Of Student Money You May Have Missed

    This checklist will help you get all the money for school you can.
  7. 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.
  8. Personal Finance

    A College Financial Plan for the Student and Parent

    It’s crucial for parents and students to explore all funding options when planning for college.
  9. Personal Finance

    4 Ways to Get a Degree Without Taking on Debt

    Although taking out student loans has become the norm in recent times, it is possible to get a degree without the burden of debt.
  10. Personal Finance

    Do You Want to Pay Less for a College Education?

    Planning ahead is key to having less student debt after college.
RELATED FAQS
  1. 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 >>
  2. Can student loans be used to pay rent?

    In most cases, loans can be used for housing costs, but students should still plan to have some cash on hand. Read Answer >>
Trading Center