Financial aid is complex, but June is decision time. You've received your award letter; now you need to accept or decline aid, sign loan documents, and set up payment. This is typically a parent/guardian task, but students should understand the process. Failure to complete financial aid paperwork = no aid disbursement, and you can't enroll. Handle this seriously and on time.
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Review Your Award Letter
- Find "Financial Aid Award Letter" in college portal
- Understand breakdown: grants (free money), scholarships (free money), work-study (job on campus), loans (borrow)
- Compare: How much aid? What's the net cost (cost of attendance minus aid)?
- Question: Is this affordable for your family? If not, contact financial aid office about options
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Accept/Decline Aid Components
- Most colleges require you to accept or decline each aid component separately
- Log into student portal
- Go to "Financial Aid" → "Accept Award"
- Grants/Scholarships: Accept (free money, no downside)
- Work-Study: Accept if you want on-campus job (optional, can decline or accept)
- Loans: Carefully consider before accepting (you'll repay this)
- Confirm your selections and save screenshot
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Sign Master Promissory Note (MPN) for Loans
- If accepting federal loans, you must sign an MPN (Master Promissory Note)
- Go to studentaid.gov → "Manage Your Loans and Aid" → "Sign an MPN"
- MPN is a legal contract agreeing to repay loans with interest
- Understand terms: Interest rates, grace period (6 months after graduation before payments start), repayment options
- Parent/PLUS loans: Parent signs separate PLUS MPN at studentaid.gov
- Keep copy of signed MPN
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Understand Loan Types & Terms
- Subsidized loans: Government pays interest while you're in school; you repay after graduation
- Unsubsidized loans: Interest accrues while in school; you repay principal + accrued interest
- Parent PLUS loans: Parent borrows in their name; larger amounts available; higher interest rates
- Interest rates: Fixed, typically 5-8% (check current rates at studentaid.gov)
- Grace period: 6 months after graduation before first payment due
- Repayment term: Typically 10 years (various plans available)
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Complete Loan Entrance Counseling
- Required if taking federal loans
- Takes ~30 minutes at studentaid.gov
- Covers: Loan terms, repayment options, financial literacy, default risks
- Complete this BEFORE accepting loans
- Receive certificate of completion; submit to college
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Set Up Loan Disbursement
- Add bank account to college portal for electronic disbursement
- Loans are disbursed directly to college first (tuition, fees paid automatically)
- Remaining balance (if any) is refunded to your bank account
- Add account early to ensure smooth disbursement
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Parent Financial Contributions
- Does your family contribute cash toward tuition/fees?
- Set up payment plan (below task) or pay upfront
- Confirm with parents how much they're contributing