Understanding Financial Aid Offers: How to Compare and Maximize Need-Based and Merit Aid
Receiving financial aid offers from colleges can be both exciting and overwhelming. Colleges present aid differently, so it's essential to compare packages carefully and understand what can be negotiated. Whether you’re considering need-based aid adjustments through a professional judgment review or leveraging multiple merit-based aid offers, strategic steps can help you maximize financial support.
Comparing Financial Aid Offers
Financial aid letters vary in format and terminology. To make a fair comparison, break down each offer into key components:
Grants and Scholarships – This is free money that does not need to be repaid. Pay close attention to whether awards are renewable for all four years.
Work-Study – A federal program that allows students to work part-time jobs to earn money for college. This is not guaranteed income, so it should not be treated as a direct discount on tuition.
Loans – Federal and private loans may be included in your package. Consider interest rates, repayment terms, and the amount you’ll owe after graduation.
Total Cost of Attendance (COA) – Some schools list only tuition and fees, while others include estimates for room, board, books, travel, and personal expenses. Ensure you’re comparing total costs accurately.
Net Price – Net Price is calculated by subtracting grants and scholarships from the total COA and represents the actual cost your family must cover through savings, income, loans, or work-study.
You can evaluate offers using a no-cost tool such as College Essay Guy’s Award Letter Analyzer Spreadsheet or Scholarships360’s Financial Aid Award Letter Comparison Tool.
Appealing for Additional Need-Based Financial Aid
Colleges calculate need-based aid using the Free Application for Federal Student Aid (FAFSA) and sometimes the CSS Profile. However, if your financial circumstances have changed significantly, you can appeal for a reassessment. This process, often called a professional judgment review, allows colleges to make adjustments based on updated financial information. Some common reasons for appealing include the death of a parent, job loss or reduced income, parental divorce or separation, loss of other income sources, medical expenses, change in child support or social security benefits, and expenses from a natural disaster. You can also appeal if other colleges calculate your need-based aid significantly more favorably.
Steps to Request a Review:
Check the college’s website to determine its appeal process; if you need clarification, contact the financial aid office.
Unless an online form or another process is required, the student (or a parent if presenting sensitive information) should email financial aid with details and dates; SwiftStudent, an open-access resource, has some great forms. Attach supporting documentation (e.g., death certificate, layoff notice, medical bills, divorce decree). Schools will not adjust aid without clear evidence of financial changes.
Follow up if you don’t receive a response within 7–10 days.
Requesting Additional Merit Aid
Merit scholarships are awarded based on academic, athletic, artistic, or leadership achievements. If you receive merit aid from multiple colleges, you may be able to obtain a higher award from your top-choice school. Below are two common justifications for seeking a higher award:
Your Academic Profile Has Improved – Higher test scores, GPA, or recent awards may justify a merit aid increase.
Competing Offers from Peer Colleges – If one or more peer colleges—that is, similar in applicant pools, perceived quality, selectivity, and institution type/size—offer a larger merit award, you can request a reconsideration from your top-choice school.
Steps to Request Additional Merit Aid:
Have the Student Lead the Process – Students should lead the process, as colleges will appreciate the initiative. Parents or college counselors can review draft communications before the student sends them.
Email Admissions – Since the admissions office makes merit aid decisions, direct your request there—not to the financial aid office. It’s usually best to email your regional admissions officer and copy the general admissions email; if you do not hear back within a week, you can contact a higher-level admissions officer or director.
Explain Any Improvements – Highlight any increases in test scores, GPA, or recent awards that strengthen your academic profile.
Compare Offers from Peer Institutions – If a peer (or higher) school has made a more generous offer, provide a copy of that award letter. However, ensure that you’re comparing the net price rather than just the scholarship amount, as colleges have varying full sticker prices.
Frame the Request Professionally – Instead of asking outright for College X to match College Y’s offer, a good approach is often to note that College Y has made its overall cost more manageable for your family, but you would strongly prefer to attend College X if it can bridge the gap.
Be Patient and Follow Up – Give the school 7-10 days to respond before following up; see also the comment below on deadlines.
Other Considerations
Be Realistic – While some colleges have flexibility, expect any merit aid increases to be $2,000-$5,000 per year rather than drastic changes.
Understand Market Dynamics – Compared to less selective colleges, highly selective institutions are less likely to increase merit aid, and some do not give any merit aid.
Maintain a Respectful Tone – Colleges are more likely to respond positively to well-crafted, professional requests that demonstrate genuine interest and gratitude.
Deadlines Matter – Watch enrollment deadlines; most colleges require a decision by May 1. Don't wait until the last minute to finalize your financial aid strategy.
Do you have questions about financial aid?
By strategically comparing need-based and merit aid offers and approaching the process professionally, families can improve their financial aid packages and make college more affordable. Feel free to contact me with any questions about financial aid or any other part of the college planning process.
