Yes, you can negotiate your financial aid
A guide to getting a better deal from your college
Spring has sprung and that means colleges have started sending financial aid award letters. This letter tells you what grants and scholarships you will get next year and how much you’ll have left to pay.
Little known fact: you can negotiate your financial aid much like a salary or car. Students who do it successfully save $1,000s a year, but most still don’t know they can negotiate or don’t know how. I made this guide to help.
Why would my college negotiate with me?
Colleges compete for students. One way your second choice college can become your first is by offering you more grants and scholarships. These grants and scholarships often come out of the college’s own pocket and pay its own fees, so it’s more like a discount than a gift. If you ask for a bigger discount, a college may agree just because they want you to go there.
How good are my chances?
Incoming students with high financial need who are negotiating with a private college have the best chance of winning. Let’s break that down:
Current students can still negotiate, but the college has less incentive to give money because they expect you to continue attending either way.
Colleges give more money to students with higher financial need. You can calculate your need by subtracting your expected family contribution (EFC) from the college’s cost of attendance.
Admissions and financial aid offices at private colleges usually have more discretion with how they spend. I’ve helped students win negotiations with public colleges, just not as often.
How does negotiating work?
Negotiating your financial aid just means asking your college for more money. I like to negotiate in writing. It allows me to make a strong and clear case, and skip the wait times and difficult conversations that sometimes happen on the phone.
If you go with a written negotiation, you can send an email to your college’s financial aid office or the admissions office. If you decide to call or go in person to negotiate, make sure to have talking points ready.
You can base your argument for more money on your financial situation, academic performance, a better offer from another college, or all three. You can ask for a specific amount of money or just more. If you ask for a specific amount, explain why.
How do I write my negotiation letter?
The most important things to include in your negotiation letter are how much grant, scholarship, and work-study money you were offered, how much you appreciate it, and why you need or think you should get more.
I wrote an example negotiation letter for an imaginary student named Jordan to show you what one could look like. I use financial need, a competitive offer, and academics in my argument to show you all the possibilities. You don’t need to have all three in order to negotiate.
My letter explains why it doesn’t make sense for Jordan to go to College X given the current financial aid award and a better award from College Y. Then, I remind College X why they accepted Jordan. I don’t ask for a specific amount but I imply they should get closer to what College Y offered.
Dear Admissions Officer,
My name is Jordan Fairly, and I’m a prospective student at College X. First off, I want to thank you for accepting me and for the financial aid you gave me so far. It really means a lot.
College X is at the top of my list, but unfortunately, cost will be a big factor in my decision. I’m writing you today to see if College X can increase my grant and scholarship award to make it possible for me to enroll at College X.
My financial aid award includes $23,000 in grants, scholarships, and work-study, which I really appreciate. However, I would still have to pay $27,000 a year. Even if I took out $9,500 in federal loans, it still leaves $17,500. This is much higher than my EFC of $2,000.
While College X is at the top of my list, College Y has offered me more financial aid, and I have to make a decision that makes sense personally and financially. If I attend College Y, I would only have $5,000 to pay after taking out my federal loans (letter attached).
With my 3.9 unweighted GPA and experience serving as my high school’s president, I think I could be a great contributor to College X’s Chemistry Department and the campus community. If there’s anything you can do to make College X more affordable to me, it would mean so much.
Thank you for your time and attention.
Best,
Jordan
When should I start negotiating?
You’ll need your financial aid award letter first. Colleges will email it to you or post it to an online portal if you have access to one. If you can’t find it, email the college’s financial aid office.
Ideally, wait until you receive financial aid awards from all of the colleges you were accepted into. Sharing a better financial aid offer will make your negotiation much stronger! If don’t have a better one, you can go on TuitionFit to see if any similar students got more money from the same college and use that instead.
What else should I know?
Avoid saying the word “negotiate” to your college. Asking for more grants and scholarships is common practice, but administrators usually call it an “appeal” even though appealing is a different process.
Some grants and scholarships, such as Pell Grant, cannot be increased by the college through negotiation. If you don’t know the difference, no problem! Just ask for more grants and scholarship money—not specific programs.
If you use your EFC in your negotiation letter, your college may reply and say they don’t meet full financial need. That’s fine. You still say you can’t pay what they asked you to pay and ask for more help.
Try to remain respectful when negotiating, even if you get frustrated. The person you negotiate with is likely not the person who makes the rules about what the college will or won’t do for you.
Stay tuned for more guides on financial aid! If you have a question that I didn’t cover here, please leave a comment.