The college financial aid office will develop a financial aid package for your child, taking into consideration all the financial options available at that particular school. The award letter will tell you the total amount of financial aid a school is offering. The aid list includes scholarships, grants, work-study, and loans. Every school has its own guidelines for putting together a package. Some will begin by awarding every student the maximum Stafford loan amount possible and then providing other aid. Other schools will award grant aid first, followed by work-study and educational loans.

Most financial aid administrators follow these basic steps in putting together a financial aid package:

• Determine the student's expenses or total cost of attending the school.

• Review the EFC (Expected Family Contribution) as determined by the federal government.

• Compare the total cost with the EFC to establish a student's need and eligibility for federal and state financial aid programs.

• Reevaluate the EFC to determine eligibility for institutional aid (every financial aid office has different rules and guidelines for this step; this will include need-based and merit-based aid).

• Put together a complete financial aid package to offer the student.