You must file the Free Application for Federal Student Aid (FAFSA) every year in order to qualify for any type of federal or institutional financial aid for college. This information is passed onto colleges you listed on the application. If you’re accepted to the school, they’ll send what’s called a “Financial Aid Offer Letter.” However, these letters can be confusing – they’re often in different formats and may use terminology you’re not familiar with. 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?
Students and their parents have to complete the FAFSA on the Federal Student Aid (FSA) website using their FSA IDs. Online forms process in one to three days, while paper forms can take up to 10 days.
Once the FAFSA is processed, students can log into their FSA account and check their FAFSA Submission Summary, including their Student Aid Index (SAI). This number is used by the government and schools to determine financial aid offers, including Pell Grants, need-based scholarships, and more. However, you won’t know about specific financial aid offers for a few weeks at least.
When you submit the application, the federal government asks for a list of schools you’re applying to. You can list up to 20 colleges or universities at a time. The government will pass on your FAFSA results to your chosen schools, who then decide if you qualify for any institutional grant aid.
If accepted to your college, the college sends you a Financial Aid Offer Letter, which details how much financial aid you qualify for, including federal grants and loans as well as any institutional aid.
In most cases, you’ll receive your offer with the acceptance letter. However, if you applied to a school through Early Action or Early Decision, you’ll likely have to wait until spring to hear back about financial aid.
How To Read Your FAFSA Results
After you submit your FAFSA, you’ll receive your FAFSA Submission Summary in just a few days. Previously known as a Student Aid Report (SAR), it details your:
Student Aid Index
The Student Aid Index (SAI) replaced the Expected Family Contribution (EFC). Previously, the EFC was based on what the government believed your family could contribute to your education costs. Today, the government and colleges use the SAI, which indicates how much financial support a student needs to afford college.
An SAI ranges from -1500 to 999999. 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 2025-2026 academic year, you might qualify for:
- The Pell Grant doesn’t have to be repaid, and eligible students could receive up to $7,395.
- 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 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 gift aid you qualify for, including how much. This can include federal grants, such as the Pell Grant, and institutional aid, including need-based scholarships.
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.
| Lender | Rates (APR) | Eligibility | |
|---|---|---|---|
 |
5.19% - 15.81%* Variable
3.99%-15.61%* Fixed |
Undergraduate and Graduate |
VISIT CITIZENS |
 |
4.79% - 14.96% Variable
3.49% - 15.49% Fixed |
Undergraduate and Graduate |
VISIT SALLIE MAE |
 |
4.38% - 17.99% Variable
3.39% - 17.99% Fixed |
Undergraduate and Graduate |
VISIT CREDIBLE |
 |
5.34% - 13.19% Variable
3.48% - 12.61% Fixed |
Undergraduate and Graduate |
VISIT LENDKEY |
 |
5.25% - 14.26% Variable
3.39% - 14.16% Fixed |
Undergraduate and Graduate |
VISIT ASCENT |
 |
3.70% - 8.75% Fixed |
Undergraduate and Graduate |
VISIT ISL |
 |
4.99% - 16.85% Variable
3.47% - 16.49% Fixed |
Undergraduate and Graduate |
VISIT EARNEST |
 |
5.00% - 13.97% Variable
3.69% - 14.22% Fixed |
Undergraduate and Graduate |
VISIT ELFI |
