A.I. COUNSELOR explains why comparing college aid letters by total amount is misleading. Two identical totals can mean very different costs depending on how much is grants versus loans. Break down each award into components and calculate actual out-of-pocket expense to compare schools fairly.
Never compare award letters by the total number alone. Myth number 9: Just add up the numbers on each award letter and pick whichever one gives the most total aid. I wish it were that simple. Award letters are notoriously inconsistent in format. Some schools bury loans and work-study inside a number labeled financial aid without clearly separating them from grants and scholarships. So, 2 letters with the exact same total dollar figure can represent wildly different actual cost to your family. A letter offering $40,000 in aid that's mostly loans is not the same as a letter offering $30,000 in aid that's almost entirely grants. The second one might save your family more real money, even though the headline number is smaller. So here's the very important takeaway: never compare award letters by the total number alone. Break each one down into grants and scholarships versus loans and work-study, and then calculate your actual out-of-pocket cost at each school. That's the number that matters, not the bold number at the top of the letter.
