How to compare financial aid awards

Comparing financial aid awards from colleges isn't as easy as asking, "Who's giving us the most money?"

We've met more than one family who admitted to being swept up by the total figure in the financial aid award letter they received along with an offer of admission from a college.  When a college says that you've been awarded, "$16,000 in financial aid a year for four years:" that doesn't necessarily mean that you're getting a $16,000 discount off the college's sticker price. 

Financial aid awards can be a combination of free money (scholarships), loans, and work study.  To figure out who's giving you the best offer, you need to consider the total cost of attendance for the college, the amount of free money, loans and their accompanying interest rates, etc. 

For senior parents, the award comparison tool available from Finaid.org is wonderful.  You plug in the numbers; they'll tell you who's giving you the best offer. 

Just remember that the "cost of attendance" (COA) is not just the tuition–it's tuition, room and board, personal expenses, etc.  Most schools list their estimated COA on the financial aid section of their websites.