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Welcome to Knowledge for College brought to you by Chase, and thanks for joining us. This series of videos provides valuable information on the many important steps of going to college and financing an education.

Hi, I’m Chelsea Richardson. You’ve applied to college, been accepted and now you have an award letter from the school. Ken Butler will tell us what it means.

You waited weeks for a college acceptance letter and then you had to wait for your financial aid award letter. Now it’s finally arrived. But what does the award letter really mean? For many students, cost is one of the top factors when choosing a school. That’s why the financial aid award letter is so important. With these helpful tips, you can learn to understand the award letter and how to compare offers from different schools.

First, break down the award letter. If you’re comparing college offers, make a list for each school. Then, write down the total Cost of Attendance for each. This should include tuition, fees, living expenses, books, transportation, a computer and other education expenses. If it doesn’t, contact the school’s financial aid office to get an estimate.

Next, determine how you may be able to pay for school by taking a look at the award letter. Does the award letter include grants or scholarships? These are sources of financial aid that do not need to be repaid and can help reduce your cost of attendance. Does the award letter offer a work-study job? This can be an on-campus or off-campus job of about 15 hours a week. Your earnings can help you pay for school. Does the award letter include federal loans? These can be for both students and parents and do need to be repaid. Some schools may also offer low-interest school loans through their endowment programs.

Add the total amount of financial aid funds provided in each school’s award letter. Then subtract that total from the Cost of Attendance. The results may be similar for some schools. You’ll need to compare the aid amounts by looking at the types of aid. Consider what funds will need to be repaid, and what won’t.

The last item to consider in the award letter is the Expected Family Contribution. That’s the portion the school expects you and your family to contribute. It's determined by information you provided on the FAFSA, the Free Application for Federal Student Aid.

Now, subtract your Expected Family Contribution. Are all of your expenses met for each college or do you need additional money to cover the costs? If you need help meeting the Expected Family Contribution, or the remaining balance, there are ways to cover the expenses.

You may be able to save money by choosing a less expensive room and board option, commuting from home or buying used books instead of new. If you’re creative, you may be able to cut back on expenses—but, be realistic with your budget! Private student loans, which are credit-based, can also help when savings and other financial aid are not enough to cover the costs.

Finally, if you don’t understand a school’s award letter, or if the aid doesn't meet your needs, be sure to contact the school’s financial aid office. They want to help.

Knowledge for College is brought to you by Chase to help you better understand college financing. If you have any questions on your specific financial situation, consult your financial advisor or the financial aid office of your school.