A Guide for International Student
Congratulations, you’ve been accepted to college! But before you pack your bags and move to the United States, make sure you fully understand your financial award letter. I’ve had so many students misunderstand their awards and think they were getting more free money than they actually were.
Although not on purpose, financial award letters can be confusing and sometimes misleading. Here is an easy way to understand your total cost, how much in scholarships you are receiving, options to appeal for more aid, and alternatives! Let’s get into it!
What is a Financial Award Letter?
A Financial Award Letter is a formal document explaining how much financial aid ( loans, scholarships, merit-based aid, work-study etc.) you will receive from the university. Because you can only commit to one university, you should compare all financial award letters (also called financial aid packages) and decide once all information has been received.
Essential Things to Note about Financial Award Letters:
There is No Standard Format
This means that letters will sometimes include different information, which can sometimes lead to misunderstandings about aid, scholarships, loans, debt, and the full cost versus the cost of tuition, etc.
Letters Arrive at Different Times
You will receive a financial award letter for every university that you apply to. Still, the financial award letters may not all arrive at the same time. Some universities will send the financial award letter with your letter of admission. In contrast, others send a financial award letter at a later time.
It would be so much easier if they came at the same time so you can compare them side by side, but just wait until they all arrive!
Only Good for One Year
Whatever aid you earn is only valid for the school year you applied to. For example, if you applied for the 2025 fall/2026 spring school year, your letter is only valid for that school year. You would need to reapply for the following year and every year after that. While some scholarships are valid for multiple years, it’s good to double-check and know if you will receive the aid for one year or multiple years.
All Forms are Considered
All financial aid forms that you were required to complete by the university (CSS Profile, ISAFA, etc.) are all processed and considered when your financial award package/letter is compiled.
Financial Award Letter Common Terms
If you are interested in other college/ university terms, check out this guide.
Cost of Attendance or Full/Total Cost of Attendance (COA)
This is the cost, in US Dollars, that includes everything (both direct and indirect cost) for tuition, housing, meal plan, books,
transportation, and any other fees for a specific academic year.
Direct Cost
Fees paid directly to the university and may include tuition, housing, and on-campus meal plans.
Example:
Cost of Tuition – Direct Cost
Cost of midnight Boba with friends – Indirect Cost
Indirect Cost
Fees that are not paid directly to the university and may include meals eaten off campus, books, and flights from your hometown to school.
Expected Family Contribution (EFC)
The estimated amount that you and your family can afford to pay for your education. This figure is recalculated annually based on your family’s income, assets, household size, and number of family members attending or expected to attend university per academic year.
Loans
Money that must be paid back after a specific term. Loans may be granted directly from the university or a private funder such as a bank.
Scholarships, Merit Aid, and Grants
funding that you have earned and does not have to be paid back. Scholarships and grants can be awarded per term (semester/quarter), per year, or for multiple years. There may be eligibility requirements for multiple-year awards, such as maintaining a certain grade point average.
Work Study/ Offered Work
Money that you can earn for working at the school. You are not guaranteed a job or specific hours, but you will be given priority when student workers are hired. If you accept this type of aid but then you don’t actually get a job on campus, you must still pay the amount that you would have been earned.
International students are often surprised that they are allowed to work. If you have an F-1 Student Visa, you are actually allowed to work up to 20 hours a week and up to 40 hours during your breaks!
Example of Financial Award Letter
What Does it Mean?
- Award is for a specific school year. Ask if the cost of attendance is expected to increase and by how much. Will your university scholarships/funding be reduced after your first year? Most will stay about the same, but ask!
- Indirect costs will not be paid to the school, but you should still budget for it.
- These scholarships are awarded by the university, but you may apply for more scholarships from other organizations
- Direct Cost $76,704 – University Grant $15,500 – Student Athlete Grant $1,500 = $59,704
$59,704 will be paid directly to the school
$59,704
-$ 3,500 University Loan – must be repaid 6 months after graduation
-$ 1,000 Campus Job – must work at school to earn this amount
$55,204 Amount that must be paid directly to the school
- University Loan – Interest is not incurred while you are attending school but will start 6 months after graduation or if you withdrawal from school. The school will also give you information on terms and conditions – such as interest rates – so there will be no surprises!
- Campus Job – jobs vary by the needs of each school. Jobs can include working at the admissions office, being a tour guide for prospective students, tutoring, etc.
Example of a Multi-Year Scholarship (also called renewable scholarship)
Dear Student,
I am pleased to inform you that you have received the American University Scholarship valued at $14,500 based on your academic performance. This annual award is split between the fall and spring semesters and is renewable for a total of four years or eight semesters based on meeting renewal criteria. You must remain self – or family-funded in order to qualify for this award. Should you become government-sponsored, your scholarship will be canceled. Your award cannot be added as proof of funding for 1-20 purposes. You must meet the student visa requirements.
Your award will automatically be applied to your student account, and you can view it on your student portal.
All merit scholars whose first term of enrollment begins in a spring semester must successfully complete 15-semester credits by the end of this term and achieve a minimum 3.00 cumulative GPA. During subsequent academic years, a minimum of 30 semester credits must be completed each academic year with a 3.00 GPA, and recipients must be continuously enrolled at the university to renew the scholarship. In the event that you become qualified for a larger university scholarship, you will be awarded the higher dollar value scholarship.
What Does it Mean?
- $14,500 based on your academic performance means this was awarded to you based on your grades/scores and not your financial need. This is called merit aid and can be awarded even if you and your family are able to fully pay for your entire education.
- This school runs on the semester calendar vs. the quarter calendar. $7,250 will be applied towards fall and $7,250 towards spring. If the school were on a quarter system, $4,833.33 would be applied each term.
- Renewable for four years – You have already earned $58,00 ($14,500 X 4 years).
You just need to take the 30 units every semester and earn at least a 3.0 GPA.
- Continuous enrollment – You can take a summer break and all the other breaks, and it will still be continuous enrollment. But you cannot take a semester off and then try to return to school. If you have an emergency that may keep you from being continuously enrolled, you need to contact them to explain the situation before you take a break. Sometimes, they will make exceptions.
Decision Making
After reviewing all of your financial award letters you are ready to make a decision on where you will be going for college! How exciting! You will need the I-20 form from the university you choose to start completing the DS 160 Form to get your student visa.
Appealing a Financial Award Letter
When the Office of Financial Aid reviews your application, they look at income, financial need, scholarships that you qualify for, etc. But sometimes, your financial situation changes from when you initially apply to when you receive your financial award letter. If you are in this situation, you can apply for reconsideration.
Maybe one of your parents lost their a job, or perhaps inflation in your country has doubled overnight or your family has had major medical or other unexpected emergency bills. Whatever your situation, you can write a letter to explain your situation and see if you qualify for more funding.
Talking about money is hard! But asking for money is even harder! But remember, the worst that can happen is that they say no. But the best that can happen is they say Yes!! Use these tips to make asking easier.
Tone and Authenticity
Your tone and authenticity are the key to a good letter of appeal. If you sound like you are complaining, entitled or ungrateful for the aid you have received, it will probably not work out for you. This is not a negotiation!
- If you have been working with an admissions officer, tell them what is going on so they can help advocate for you. Also ask them about the appeals process and who the letter should be sent to. Information can also be found on the school’s website.
- Address the letter to a specific person if their information is available
- Thank them for the aid that has already been received
- Be honest about your situation and include documentation if available
- Ask if they are willing to work with you vs. demanding a second review
- If another school has already offered more aid, politely ask if they can offer the same aid or even more aid
Sample Financial Aid Letter of Appeal
Dear Mrs. Jenkins,
My name is Jim Belflower and I am a recently admitted international student. It has always been my dream to attend USA University and I couldn’t be happier about being admitting. However, my family’s financial situation has recently changed and I would like to appeal my financial award package.
After being accepted, my father was unexpectedly hospitalized. He is doing better and slowly recovering. But without his income, our family has face some financial difficulties. Family members have assisted us but I know we will be unable to cover the cost of school.
My family’s income has changed from $xxx,xxx to $xx,xxx and is expected to stay at that level for at least the rest of the year. Although I am grateful for the $xx,xxx in funding I have been awarded I will need an additional $xx,xxx to attend USA university.
I am in the top 1% of my graduating class and know I will continue to work just as hard in college. I am also willing to work on campus to earn more money.
Attached you will find a copy of the medical bills, and change in income.
I appreciate your time and eagerly wait to hear back from you.
Respectfully,
Jim Belflower
Student ID (xxxxx)
Remember that the financial aid office will be extremely busy working on ther Student’s financial award letters, appeals etc. You need to send them the appeal asap so you can receive your new revised financial award letter in time to compare it with your other offers.
What if after you review all of your financial award letters you realize you cannot afford any of the universities?
It’s not too late to consider community colleges! I live in California so I may be biased when I say that I love California Community College.
Benefits of a California Community College
Cost
Tuition is about $8,000 compared to $49,000 at the University of California
Open Admission
As long as you can get a student visa, you can attend!
Transfer Agreements
After you complete about 120 units (2 years), you can transfer an earn a degree from any university in the United States. But as an added benefit, California Community Colleges have agreements with UC campuses, Cal States, and many privates that guarantee your admission if requirements are met!
Location
California has some of the best universities, best entertainment, strong economy, great weather, beaches, mountains, deserts! What else can I saw?!
Conclusion
It’s important to understand all your aid before committing to a university. Appeal for more aid if your circumstances have changed or you didn’t receive any scholarship funding. And if all else fails, consider an affordable community college!
