The start of a new year means the start of financial aid award letters arriving in your mailbox. And now, the real work begins — determining which college is the best financial fit for your student,
Keep in mind, your initial financial aid award letter isn’t a final bill — it’s an opening offer from the school, and for many “middle-tier” private colleges, there is room to move the needle by making special circumstance or competitive appeals, if you know how to frame the conversation. In today’s post, we’re going to focus on the most common type of appeal — the competitive appeal.
Know How to Decode Award Letters
Financial aid award letters can be very misleading by making the financial burden on your family seem smaller than it is. These letters are sometimes worded to include loans in the funding amounts to lower the bottom-line number. Loans should be included in the net costs and not slipped in by colleges as if they are on par with grants and scholarships. So first and foremost, when your family receives the financial aid award letter, the key is to know how to decode it. To be an expert decoder, you need to be aware of a few things:
- Look out for “front-loaded” financial aid award letters.
- Are scholarships renewable? If so, is it for 4 or 5 years?
- Determine what is self-help vs. gift aid, which is to say, what is money that you either have to work for or pay back later and what money is truly gift aid that you don’t have to pay back?
- What is the net price of each school that your family is expected to pay out of pocket?
- What is the total loan amount, and what will be the loan payment?
- How will you strategically fund all 4 years of college down to the penny? (Don’t forget to factor in tuition increases.)
What is a “Competitive Appeal”?
A competitive appeal is a request for a college to reconsider its merit-based aid or “discount” because a peer institution has offered your student a better deal.
Unlike a “Special Circumstances” appeal (which deals with job loss, divorce, or medical bills), a competitive appeal is about market value. If School A and School B are similar in ranking and region, but School A is $5,000 cheaper, School B may match that price to win a “best-fit” student.
When making a competitive appeal, keep in mind that public schools have less money to play with, so their hands are pretty much tied. — (You can still ask, though! — and highly selective private schools have no reason to give you more money. They have a large applicant pool who would gladly pay the full sticker price. In addition, many of them do not have merit scholarships and only award aid based on need.
However, middle-tier private colleges are trying to win the best students they can, and about two-thirds of them will try to work with you if you plead your case in a well-worded and compelling appeal letter.
How to Write a High-Impact Appeal Letter
1. The Opening: Gratitude & Commitment
Start by thanking the admissions and financial aid teams for the acceptance and the initial award. State clearly that the college is the student’s #1 choice and they are eager to enroll.
2. The Bridge: The Financial Gap
Be transparent. Explain that while the student is “all in,” the current financial gap makes it difficult to choose the school without taking on excessive student loans.
3. The Leverage: The Comparison
Mention the specific offer from the peer institution.
- Example: “While [University Name] is my top choice, I have received a merit award of $20,000 from [Peer School Name], which makes their net cost significantly more manageable for my family.”
4. The Ask: Reconsideration
Request a “re-evaluation” or “professional judgment” of the merit award. Use soft language—avoid “negotiate” or “bargain.”
The “Do’s and Don’ts” for Moving the Needle
✅ The Do’s
- Do Target the Right Schools: Focus on middle-tier private colleges. Public schools usually have fixed budgets, and “Ivy Plus” schools rarely offer merit aid at all.
- Do Talk to Admissions: Often, an admissions counselor will “go to bat” for a student they want to recruit, whereas the Financial Aid office may only handle need-based data.
- Do Compare “Apples to Apples”: Only use offers from schools that are similar in prestige or location. A scholarship from a local community college won’t move the needle at a top-tier private university.
- Do Act Early: With FAFSA timelines shifting, funds are limited. Submit your appeal as soon as you have all your award letters in hand.
❌ The Don’ts
- Don’t Pay the Deposit First: Once the school has your money, they have no incentive to “win” you over. Wait until the final cost is agreed upon.
- Don’t Treat it Like Car Shopping: This isn’t a “haggle.” It’s an appeal for the school to invest in a student they’ve already deemed a great fit.
- Don’t Forget the “Fine Print”: Be wary of “front-loaded” offers that only apply to freshman year. Ensure any new money is renewable for all four years.
- Don’t Focus on “Need” if it’s a Merit Appeal: If you are asking for more merit money, focus on the student’s achievements and the competing offers, not your household expenses.
Pro Tip: Always calculate the “Net Price” (Total Cost minus Gift Aid) before reaching out. Knowing exactly where the gap lies allows you to make a precise and professional request.
What Do You Have to Lose?
Nothing. A college will not rescind an offer letter simply because you asked for more money. Getting additional dollars due to an appeal is not a sure thing. It depends on the school and their applicants that year.
However, don’t treat the appeals process like used car shopping. Admissions counselors and financial aid administrators have a process they follow. Your discussion needs to be centered on your desire to attend their school and your concern about excessive student loans. Instead of “negotiating,” think of it as asking them to “reconsider.” You are appealing for additional aid and seeking “professional judgment” to consider you for additional dollars. Be sure to be thankful for what they’ve already offered.
And my final tip…
Don’t pay the deposit until the final cost has been agreed to. Colleges aren’t motivated to work with you if they already have your money.
