The financial aid letter arrives full of unfamiliar terms and a bundled total that makes it hard to tell what's actually free money and what you'll eventually have to pay back. Reading it carefully, line by line, is worth the twenty minutes it takes.
Grants and scholarships: the part that's actually free
Grants and scholarships are gift aid — money awarded based on need or merit that you never repay. This is the number worth celebrating. Everything else in the letter, however generous it looks, falls into a different category and deserves a more skeptical read.
Work-study is a job, not a discount
Federal work-study is exactly what it sounds like: a part-time job, usually on campus, that you have to actually work in order to earn the money listed. It's not deposited automatically like a grant, and if you don't secure a position or don't work the hours, that portion of your aid package simply doesn't materialize.
"Read every aid letter like a contract, because parts of it are one."
Loans: the part you'll actually pay back
Federal subsidized loans don't accrue interest while you're in school; unsubsidized federal loans do. Private loans typically carry higher rates and fewer borrower protections than either. Borrow the minimum you actually need, and understand exactly which category each loan in your package falls into before you sign anything.
If any of this feels unclear, call the financial aid office and ask them to walk through the letter with you line by line. It's a normal request, and a five-minute call can save you from a costly misunderstanding a year from now.
