When is an ‘award’ really a loan?

by Grace

Sometimes the language in a college financial aid award letter can be confusing.  One of the things that comes up often is the topic of this CollegeConfidential discussion.

Why are financial aid packages that are nothing but the opportunity to borrow money called “awards”?

Yes, in the weird world of college financial aid, the chance to borrow money is considered an “award” to a student.  To be fair, most of these loans are subsidized and sometimes interest charges are waived while the student is still in school.  Still, it doesn’t seem right, especially when the college can claim to meet your full financial need mostly by loans.

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