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How to decipher your college aid after you’ve been accepted

FILE - In this March 14, 2019, file photo, people walk on the Stanford University campus in Santa Clara, Calif. Financial aid award letters are known to be tricky to understand due to jargon and a lack of clarity about how much you have to pay out of pocket. If you can’t interpret your financial aid award, you won’t be able to compare letters from different schools. (AP Photo/Ben Margot, File)
FILE - In this March 14, 2019, file photo, people walk on the Stanford University campus in Santa Clara, Calif. Financial aid award letters are known to be tricky to understand due to jargon and a lack of clarity about how much you have to pay out of pocket. If you can’t interpret your financial aid award, you won’t be able to compare letters from different schools. (AP Photo/Ben Margot, File) FILE - In this March 14, 2019, file photo, people walk on the Stanford University campus in Santa Clara, Calif. Financial aid award letters are known to be tricky to understand due to jargon and a lack of clarity about how much you have to pay out of pocket. If you can’t interpret your financial aid award, you won’t be able to compare letters from different schools. (AP Photo/Ben Margot, File)

By Associated Press 4 min read

With college acceptances in hand, now comes the hard part: understanding your financial aid offers.

These letters are notorious for being laden with jargon that differs from offer to offer, making comparison difficult. But you can learn how to interpret award letters to understand the costs and choose an affordable option.

WHAT TO EXPECT FROM AID OFFERS

Financial aid offers should include all of the federal, state and school aid you can access. That could mean free aid, such as grants, scholarships and work-study opportunities, that doesn’t need to be repaid, and unsubsidized and subsidized federal loans, which do. If these aid types are grouped together without explanation, they can be hard to distinguish.

Your offer also might include a parent PLUS loan as part of the award, but avoid using it if possible. These loans have higher interest rates than loans made directly to students. And unlike typical student loans, only parents can take them on, and they require credit history to qualify.