Money Mechanics Blog

Have you recently been accepted to one or more colleges? Congratulations! One of the biggest things to consider when choosing a college is cost. With your acceptance letter, you should have received a letter about what financial aid you qualify for. Let’s break down what that letter might contain:

FAFSA

You’ve probably already filled this out. It stands for Free Application for Federal Student Aid, and is usually filled out in the fall for the next school year. You need to make sure to re-fill out the FAFSA every year for next year’s aid. FAFSA opens on October 1 each year.

Award Letter

Award letters come directly from the schools you’re applied to after you’ve filled out the FAFSA. This letter will outline all the financial support you’re eligible for through that particular school.

Cost of Attendance (COA)

The Cost of Attendance at each school will differ, because it’s the estimate of total costs of attending that institution for one year. Included is tuition, room and board, books and other required supplies, personal expenses and transportation.

Remember, though, that those costs are not necessarily what you will pay. Depending on what type of dorm you choose, what type of meal plan you choose, or if you choose to buy used books instead of new ones, the price will change.

Student Aid Index (SAI)

The Student Aid Index number is the amount your family is expected to pay for your education, based on various factors such as taxable/non-taxable income, net worth, savings, etc. as reported on your FAFSA. Your SAI is not necessarily the amount of money you will actually pay, but it determines how much need-based financial aid you’re eligible for.

Financial Aid

Your award letter should provide a list of the aid you qualify for at each school where you applied. You are responsible for letting the school know which parts of your financial aid package you want to accept. Our advice? Always accept scholarships and grants, because those are free money!

Wherever you choose to attend college, Allegius is here for you! Your Free Kasasa Cash Checking account will travel with you wherever you go, thanks to our nationwide shared branching and ATMs through the Co-Op and Alliance One networks.