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- The article discusses how high school seniors should approach financial aid award letters, emphasizing the importance of understanding the costs and exploring options. While relevant to individual financial planning, it has a slightly negative influence on the US market as increased student debt and tuition costs can constrain future consumer spending and investment.
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Upcoming financial aid changes may affect how college-bound high school students choose the institution they attend.
The average student applies to about seven colleges, according to data from the Common App, the main platform students use to apply to colleges online. While most college-bound students won't be accepted into all the colleges they apply to, many end up with at least a couple of options to choose from.
"I always tell families, 'Come up with a list of colleges, go through the process, see where you get in, see the funding, financial aid offers, and then make an informed decision,'" Akbar Rahal, the admissions director at Prep Expert, a college admissions consulting company. "One of my biggest pieces of advice is not to try to make those decisions prior to the application process."
The financial aid process can be confusing, and many families say college ends up being more expensive than they expected. However, starting the process now can help families understand how much college will cost and give them time to research other ways to afford tuition.
High school seniors applying for college will typically receive a financial aid award letter from the schools they were accepted into in the spring or summer before their academic year begins.
The award letter will typically include the institution's tuition and fees, as well as any scholarships or grants the school is offering. In addition, it will display the amount of federal grants or loans a student can receive if they filled out the Free Application for Federal Student Aid.
If a family believes there has been a mistake or if their financial circumstances have changed, they can request a reevaluation to receive more financial aid from the financial aid office.
Although "there's kind of this myth that you can just negotiate with anyone over [the financial aid], and it's not really that easy," Rahal said. "[Financial aid offices] have their formulas that they work off of. This is not a subjective process."
Once a student receives their final financial aid award letter, choosing a school comes down to their preferences and circumstances.
Some students may choose to stay in-state, while others may prefer to pay more to attend an out-of-state school if it better suits their educational goals. Some families may choose the school with the highest scholarship offers, while others feel that the institution with a higher price tag offers a bigger return on investment, Rahel said.
The "One Big, Beautiful Bill" has made several significant changes to student loans and repayment that will phase in first for the high school class of 2026.
Several changes are coming to the largest federal grant program, the Pell Grant, that may impact you. These changes include:
Many students can borrow federal unsubsidized loans, and those with financial needs can take out subsidized loans, which offer slightly better interest rate terms. These loans are not changing for undergraduate students.
However, some parents of incoming freshmen will have less bandwidth to help their child afford college. Parent PLUS loans, which are taken out in a parent's name but are used to pay for the student's education, will be restricted starting the 2026-27 academic year.
Previously, parents could borrow enough PLUS loans to cover any remaining education costs after a student's financial aid is maxed out. However, in the coming academic year, parents will have an annual limit of $20,000 and a total limit of $65,000 per child.
"Families and students definitely have to have more realistic expectations, because of the [loan limits changes] that are happening right now," said Jack Wang, a college financial aid advisor at Innovative Advisory Group.
"I anticipate a large amount of 'summer melt' this year," Wang said, referring to when a student accepts a college offer but doesn't enroll, due to financial or other personal circumstances.
Financial aid can be complicated, especially with the many changes on the horizon. Rahal suggests that families who are confused reach out to the financial aid offices at their prospective schools.
"I encourage people to just take their time, and when they see these financial aid letters, not to be shy about asking questions," Rahal said.
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