How to compare financial aid offers

It's important to remember that a bigger financial aid package doesn’t always mean a more affordable college. The key is to compare the same numbers in the same order so you can fully understand the details in your financial aid offer and what each school may actually cost your family.

Financial aid offers at a glance

How the FAFSA^® connects to your financial aid offer

After you submit the FAFSA^®, you’ll receive a FAFSA^® Submission Summary. This is not your financial aid offer, but it contains your estimated financial aid eligibility and includes your Student Aid Index (SAI). Your SAI is an eligibility index that schools use when determining federal student aid—it isn’t the amount of aid you’ll receive or what your family is expected to pay.

Each school uses your FAFSA^® information, along with its own aid programs and other eligibility criteria, to determine the aid it may offer you. Once your offers arrive, the next step is to understand how each type of aid works before comparing what each school may actually cost you.

Free money vs. earned money vs. borrowed money

Before you compare offers, separate the different types of aid. A large total-aid number can look impressive, but grants, scholarships, work-study, and student loans affect your college costs in different ways.

Grants and scholarships can make a meaningful difference in how much college costs. According to Sallie’s "How America Pays for College 2026," grants and scholarships covered 27% of college costs for families in the 2025–26 academic year.

How to compare financial aid offers

To compare financial aid offers, line up the same costs and types of aid for each school so you can see what each one may actually cost you. Start with total cost, subtract grants and scholarships, then look at work-study, the financial resources your family plans to use (such as current income and savings), and any remaining amount you may need to cover.

This comparison may help you come to a final college decision. Sallie’s "How America Pays for College 2026" found that 63% of families used cost to narrow their college choices after seeing financial aid offers. Overall, 79% eliminated at least one school based on cost at some point in the college decision process.

Here is a step-by-step guide to compare each offer in the same order:

1. Make sure you’re comparing the same period and costs

Start by making sure each offer covers the same academic period, then double-check you're comparing the same costs at each school, such as tuition and fees, housing, food, etc.

Some costs are billed directly by the college, while others are estimates for expenses such as books, supplies, and transportation. If one school includes an expense and another doesn’t, make sure to account for that expense in your comparison so you’re looking at the full estimated cost of each school.

2. Find each school’s cost of attendance

Cost of attendance is the school’s estimate of your total education-related costs for the academic year, which can include tuition and fees, housing, food, books, supplies, transportation, and other expenses.

If the cost of attendance isn’t clear in your offer, check the school’s website or contact its financial aid office before you compare.

3. Subtract grants and scholarships

Next, subtract grants and scholarships from the school’s cost of attendance. This gives you the school’s net price—a much more useful number for comparing colleges than the total aid package.

Cost of attendance − grants and scholarships = net price

Don’t subtract work-study or student loans when calculating net price; work-study is earned, and loans have to be repaid.

4. Look at work-study separately

If your offer includes work-study, remember that it represents money you may be able to earn through an eligible job. You generally won’t receive the full amount upfront, so don’t treat it like a grant that immediately reduces your bill.

5. Factor in the resources your family plans to use

Once you know each school’s net price, look at the non-borrowed resources your family plans to use, such as available savings or current income.

What remains is the amount you need a plan to cover. Keeping this number separate from the school’s net price makes it easier to see the difference between what the college costs and how your family plans to pay for it.

6. Compare potential borrowing, renewal requirements, and deadlines

If you still have a balance after scholarships, grants, other aid, and savings, a student loan can help cover remaining costs. Review the federal student loans and private student loans available to you, and compare interest rates, fees, repayment terms, and total cost before accepting any loan.

Whatever option you consider, the goal is to borrow smart and compare financing options rather than automatically borrowing the full amount you’re offered. Borrow only what you need and look for ways to keep your total loan costs down.

Finally, be sure to get any lingering questions surrounding your aid offer answered, including whether grants and scholarships are renewable, what requirements you need to meet to keep them, and when you need to accept or decline your aid.

How do I know which financial aid offer is best?

The offer with the biggest dollar amount isn’t necessarily the one that leaves you with the lowest college cost. Focus on net price first, then compare what you may still need to cover after taking into account the financial resources your family plans to use.

For each school, look at:

• Net price: What is left after grants and scholarships?
• Remaining amount to cover: What is left after non-borrowed resources your family plans to use, such as savings or gifts from relatives?
• Potential borrowing: How much might you need to borrow, and what would those loans cost over time?
• Renewability: Are grants and scholarships available for future years, and what requirements do you need to meet?
• Cost changes: Could housing, enrollment, program fees, or other expenses change in future years?

A college with a smaller total aid package can still be the lower-cost option if its overall cost is lower or it provides more grants and scholarships.

Do I have to accept all the financial aid I'm offered?

No, you don’t have to accept every type or amount of financial aid in your offer. Review each part separately and follow your school’s instructions for accepting, reducing, or declining aid.

Students can always decline a federal student loan or ask the school for a lower loan amount. Sallie’s "How America Pays for College 2026" found that 80% of families who received a financial aid offer said they accepted the entire award. Even so, your decision should be based on what you actually need and the terms of the aid you’re accepting.

If you’re unsure what a specific award means or how to respond, contact the school’s financial aid office before accepting it.

What should I do if my financial aid isn’t enough?

If your financial aid offer leaves you with more to cover than expected, review the numbers carefully and contact the school’s financial aid office with any questions or if your family’s financial situation has changed. In certain circumstances such as job loss, income reduction, or a change in marital status, the school can review your situation and determine whether your aid should be adjusted.

You should also keep looking for grants and scholarships, which provide "free money" for college since they don't have to be repaid. You can use Scholly^® Scholarships to find and apply to thousands of scholarship opportunities. For a quick place to start, Sallie’s $2,000 No Essay Scholarship^† takes two minutes or less to enter, while Scholly^® Easy Apply Scholarships^† can help you apply to multiple opportunities with one application.

After accounting for grants, scholarships, available savings, current income, and other non-borrowed resources, look at any remaining amount you need to cover. If borrowing is part of your plan, compare the federal and private student loan options available to you based on their terms and total cost.

Comparing graduate school financial aid offers

Graduate school financial aid offers can look a little different from undergraduate offers. They may include institutional scholarships or grants, fellowships, assistantships, federal student loans, and other financing.

Still, you can use the same basic comparison method: start with the program’s full cost, subtract scholarships, grants, fellowships, and other aid you don’t repay, then compare the amount you may still need to cover and your financing options.

One thing to note: Federal borrowing rules for graduate and professional students changed on July 1, 2026. New graduate and professional students are generally no longer eligible for Grad PLUS Loans, although a limited exception applies to certain continuing borrowers. Be sure to double-check current federal loan rules and your school’s offer before building your financing plan.