The Confusing Information Colleges Provide Students About Financial Aid

The cost of college is one of the main things students consider when deciding whether and where to enroll. So it makes sense that students, once admitted, would rely so much on the letters from colleges that tell them how much the institution can chip in. The problem is: Those letters, called financial-aid award letters, are often confusing and vary wildly from college to college.

A new report from from uAspire’s work with students. What they found was inconsistency. Several of the letters didn’t even use the word “loan” when referring to an unsubsidized loan, a type of loan that accrues interest while students are in school. Other letters did not include information about how much it actually costs to go to the institution, which is vital context for students trying to figure out, for instance, how far a Pell grant (a federal grant for low-income students) will go. And half of the letters did not explain what a student had to do to accept or decline the aid that was offered.