Key takeaways:
- Most students receive their FAFSA results within three days on the FSA website.
- Your Student Aid Report will detail your Student Aid Index, estimated financial aid package, and more.
- Colleges use your FAFSA to determine financial aid packages, including grants, scholarships, and loans.
You must file the Free Application for Federal Student Aid (FAFSA) every year in order to qualify for federal financial aid. Once processed, you’ll receive the FAFSA Submission Summary. Most colleges also use the FAFSA to determine your financial aid package. Their offer and any federal aid you qualify for is detailed in a “Financial Aid Offer Letter” or an “Award Letter.”
However, between different acronyms, varying formats, and confusing terminology, it’s easy to get turned around. Here’s a rundown of everything you need to know about reading your FAFSA results and making the best decisions for your education and financial future.
How will you receive your FAFSA Results?
- You’ll Complete the FAFSA. Go to the Federal Student Aid (FSA) website. Log in with your FSA ID and submit the FAFSA online (1–3 days to process) or by mail (up to 10 days).
- After processing, log into your FSA account. Check your FAFSA Submission Summary and Student Aid Index (SAI). (SAI helps schools calculate your aid, but college offers are usually sent to students in March/April.)
- List Your Schools. You can include up to 20 colleges or universities on your FAFSA. Your FAFSA info is sent to these schools for aid calculations.
- Wait for Financial Aid Offers. If accepted, your college will send a formal financial aid offer — or award– letter. These will specify federal loans, grants, work-study, and school-based scholarships you’ve been awarded.
- Timing. Some offers arrive with or soon after your acceptance letter. Early Action/Early Decision applicants usually have to wait until spring for their award letters.
How to read your FAFSA results
After you submit your FAFSA, you’ll receive your FAFSA Submission Summary in just a few days. Here’s what it details:
Student Aid Index
The Student Aid Index (SAI) indicates how much financial support a student needs to afford college.
An SAI ranges from -1,500 to 999,999. The lower the SAI, the higher the financial need of the individual.
If you find an asterisk next to your SAI, it means you need to submit additional financial information for verification. This happens if there are mistakes in your submission, conflicting data or information, or data that isn’t “normal” for submissions.
Estimated federal student aid
The FAFSA Submission Summary details if you’re eligible for certain federal student aid programs and the maximum amount you could receive. For the upcoming academic year, you could qualify for:
- The Pell Grant. It doesn’t have to be repaid, and eligible students could receive up to $7,395.
- Federal Loans. Federal Direct Loans are limited to $5,500. Direct subsidized loans are available to undergraduate students with demonstrated financial need, while direct unsubsidized loans are offered to all undergraduates and graduates.
- Work Study. Work study helps students earn money while attending college, but eligibility depends on the school.
Keep in mind that the numbers listed on this document aren’t offers, but estimates. You won’t know your exact offers until you receive Financial Aid Offer Letters from your colleges.
Data Release Number (DRN)
The Data Release Number or DRN is a 4-digit number in the upper right hand corner of your summary. If you’re applying to additional schools beyond the 20 you listed on your FAFSA (you can add and remove schools at any time), you’ll need to send your DRN to these colleges so they have access to your results.
How to read your financial aid offer letter
A financial aid offer letter, or an award letter, explains the types and amounts of financial aid you’ll receive for that academic year if you attend that school, including federal grants, work-study eligibility, student loan options, and institutional grants and scholarships.
There’s no standard format for financial aid offer letters, which can make it confusing to compare the actual cost of attending a particular college. However, there are a few terms, phrases, and components that will pop up no matter the school, including these:
Cost of attendance (COA)
By law, all colleges are required to list an official cost of attendance (COA), which includes the expected costs for tuition, fees, room and board, books, supplies, and transportation. You’ll find this number in the financial award letter, but keep in mind that it’s an estimate. It’s not necessarily what you’ll pay, especially after you factor in grants and scholarships.
Financial need
Financial need is the difference between how much it costs to attend a school and your ability to pay the full cost. Every student will have a different financial need depending on a variety of factors. Your financial need is determined by your SAI.
Gift aid
Gift aid refers to grants, scholarships, and any other forms of financial aid that you don’t have to pay back. Your letter highlights any federal and institutional gift aid you qualify for and how much.
Some colleges send merit scholarship offers before their financial aid offer letters.
Work-study
Work-study allows students to earn money on campus or through a partner organization while attending school to help pay towards college expenses. Students must indicate their interest in the Federal Work-Study (FWS) program when completing their FAFSA for consideration.
However, program availability and job options can be limited depending on the school and FWS funding. If you’re offered work-study and would like to take advantage of the program, we recommend researching your options and applying to positions as soon as possible. Job openings can quickly fill up, especially if they have a higher pay rate.
Federal student loans
Your letter explains your federal student loan options, including Direct Subsidized Loans and Direct Unsubsidized Loans, interest rates, terms, and the maximum amount you qualify for. If you decide to take out loans, they’ll have to be paid back with interest. You can choose to decline the loans, take out the maximum amount, or accept only what you need to attend and decline the rest.
How to compare financial aid offer letters
In order to determine the best deal for college, you need to be able to compare your financial aid offer letters. However, when schools use different formats, it’s easy to get confused. We’ve made it easy to cut through the misleading terminology and complexity with our Financial Aid Offer Letter Comparison Tool. Simply upload your offer letters to see detailed information about financial aid options, expected debt after graduation, and more so you can make an informed decision about your college choices and finances.
