5 tips on reading your Student Aid Report

It happens every year. Thousands of students fill out the Free Application for Federal Student Aid, or FAFSA, expecting free cash. Then they wince when they receive their Student Aid Report in return.

The reports state whether students are eligible for federal Pell grants. They can make or break a family's plan for paying for college. If your report isn't exactly what you'd hoped for, don't worry. This primer should help you understand these reports and their impact.
It's only part of your aid package
"The Student Aid Report only tells you whether you're eligible for federal need-based grants," says Katy Maloney, interim director of financial aid at the University of California, Davis. "If you're not qualified, there are still other grants and loans."

Maloney says that the Student Aid Report provides students with two crucial pieces of information -- their federal Pell grant eligibility and their family's expected contribution. The majority of students won't qualify for a Pell grant, but they will still be eligible for federal and private loans, grants and scholarships from their college and community organizations as well as federal work-study positions.

Students will receive a letter from their school outlining their financial aid package in late-March to mid-April. Maloney says that students can get an estimate of their school's aid offer by looking at the expected family contribution.

"If (students) see an expected family contribution that exceeds the cost of their university, that means they won't be eligible for any need-based aid," says Maloney. "They could qualify for loans or merit-based scholarships."