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Getting a higher education degree is expensive. According to the , the average cost of attending college in the U.S. is $38,270 per student, per year, including books, supplies and living expenses. Prices are increasing too — the average cost of college has more than doubled in the last 25 years, with a compound annual growth rate (CAGR) of 4.11%.

Steep costs mean that many students have to rely on financial aid of some kind to pay for school. In fact, more than use some kind of aid. Even with help, though, some schools may feel out of reach for lower-income applicants.

Understanding Your Financial Aid Offer

Financial aid comes in many different forms, including loans, scholarships, grants, and work-study programs. Before you consider asking for a change to your financial aid package, it is important that you understand the offer you have received.

First, determine if your aid is in the form of a loan, grant, or scholarship, so you understand your responsibilities for repayment. Student loans, for instance, must be paid back with interest, while grants do not have to be repaid.

Next, evaluate whether your financial aid is needs- or merit-based. Needs-based scholarships and loans are designed to help students without the financial means to pay for tuition afford a higher education, while merit-based aid is awarded based on academic achievement. You can negotiate either type of aid, but the strategy for doing so will be different.

Can You Negotiate Your Financial Aid Package?

With such high tuition costs, paying for college has been difficult for many students for a long time. Students are absolutely allowed to appeal their financial aid packages and negotiate better terms if they can demonstrate need. Oftentimes, students can provide evidence of a change in financial situation since the application for aid was first submitted. Additionally, merit-based scholarships and aid can be negotiated if you have significantly improved your grades or received a more competitive offer from another school. 

The good news is that financial aid calculations are being improved for the upcoming school year as well. During the COVID-19 pandemic, increased financial need motivated the federal government to address their aid packages and make them more accessible for many students. 

In December of 2020, Congress enacted the designed to make federal aid more accessible and simplify the process of filling out the Free Application for Federal Student Aid — the key form used to determine financial aid packages. The overhaul of processes used to award aid under the FAFSA Simplification Act go into effect for the 2024-2025 school year. Changes include replacing the Expected Family Contribution (EFC) with the Student Aid Index (SAI), which uses a new formula to calculate aid eligibility and explain access. 

Misconceptions About Financial Aid

It is a common misconception that financial aid is a one-time offer with no room for negotiation. This is not the case, and many students do appeal their financial aid decisions to access better packages. 

In addition, you do not have to worry about your admissions decision being tied to your financial aid negotiations. Determining your financial aid package is a conversation between the student and financial aid office after an acceptance has been issued, and asking for more support will not affect your admission. 

Steps For Negotiating Your Financial Aid

If you need to negotiate your financial aid package, follow these steps: 

• Assess your financial situation.

The first step in negotiating financial aid is figuring out how much you can afford. Take a look at your FAFSA and ensure there are no mistakes. Because the form is filled out with tax information from two years prior, compare the data with your current financial situation to ensure it is still accurate. If you have experienced a recent financial hardship that is not documented — like job loss or health care expenses — you’ll need to be able to demonstrate that difficulty to the financial aid office. 

• Gather supporting documentation.

If you determine you have additional financial hardship, make sure you gather documentation demonstrating this. That might include more recent tax returns, unemployment paperwork, bills, or bank statements. For merit-based negotiations, updated test scores, or transcripts can show improvements. 

• Compare offers from multiple schools.

In some cases, you may be able to use the financial aid offer from another school as leverage for a better package. Compare the offers you have received from multiple schools, but make sure they are comparable. For instance, the tuition at a private institution may be much higher than public, so aid packages could be different to accommodate this. An offer from a similar school is a better negotiation tool.

• Craft an appeal letter.

With all your documentation in hand, write a detailed letter appealing your financial aid offer and requesting further aid. Explain any changes in your financial situation and why they impact your ability to pay tuition and reference better offers from other schools. Keep the letter to one or two pages, with copies of any relevant documentation attached.

• Contact the school’s financial aid office.

Reach out to the school and find out where you need to send your financial aid appeal letter and how to begin the process of a re-assessment of your financial aid package.

• Follow up.

It may take some time for the financial aid office to evaluate your appeal and get back to you with a decision. Don’t be afraid to follow up and ensure the office has all the documentation required to process your application.

• Wait to submit your deposit.

Your financial aid package will likely play a big role in deciding which college you actually want to attend. For most schools, you don’t have to submit your deposit to secure your spot until May 1, so wait to pay your deposit until you have a full picture of your final aid offer.

Is It Worth It to Negotiate Your Financial Aid Package?

It can definitely be worth it to negotiate your financial aid package. Successful negotiations can reduce your reliance on loans and minimize long-term debt — up to thousands of dollars, making college accessible to those experiencing financial hardship. Remember that negotiating your financial aid does not impact your admission, so there’s no downside to advocating for yourself.. Approach the financial aid office politely but confidently, and be specific about the additional support you need. Even if your request is denied in the worst case scenario, you’ll better understand your financial options and how to plan for your education.

Financial Aid Resources

If you are still struggling to figure out how to fund your education, there are great resources available. Educate yourself with information from these sources, and don’t be afraid to ask for help.

Other Options for Funding Your Education

In some cases, your financial aid package may not be enough to cover your college expenses. Don’t fret — there are plenty of options for accessing money to pay for college. You could consider a private student loan or look into options for Parent PLUS loans. Additionally, you may be able to find an employer that will help supplement the cost of your education, if you meet certain requirements. 

Just be careful when taking out additional loans to pay for school, as some come with high interest rates that make repayment difficult. Be sure to compare rates, only take out the money you need and consider how you will make payments when the time comes.