As those college acceptance letters hit mailboxes, families are receiving financial aid offers, too, and those can be tremendously confusing. While navigating these offers and advocating for further assistance can feel daunting, experts say it can go a long way in lowering the cost of college.

The majority of colleges will issue acceptances and financial aid award letters in March. Rick Castellano, a spokesperson for Sallie Mae, puts the focus on maximizing gift aid. Scholarships, fellowships, and grants are the best bet since they do not require repayment. He recommends reducing loans that build up interest.

The goal is to maximize gift aid — money that doesn't need to be paid back, such as scholarships, fellowships and grants — and minimize loans that will need to be repaid with interest. - Castellano

Castellano stresses that families need to pay close attention to the terms of gift aid, including renewal requirements and GPA thresholds. Not meeting these terms may result in the repayment of the grant or scholarship.

But even with gift aid, it's important to read the fine print, such as whether a grant is renewable for all four years or whether a minimum grade point average must be maintained. - Castellano

It's worth noting that if a student fails to meet the terms, such as a GPA requirement, they may have to repay some or all of a grant or scholarship. - Castellano

It’s one of the reasons that the average undergraduate loan balance is still about $30,000, according to College Board. Castellano urges families to not hesitate to call the college’s financial aid office. They’re able to ask for more help, even after filling out the Free Application for Federal Student Aid (FAFSA).

According to Sallie Mae, 3 out of 4 families that appeal end up with more aid.

In fact, 71% of families who appealed their financial aid offers in the 2023-24 academic year received additional funding. - Sallie Mae

James Lewis, co-founder of the National Society of High School Scholars, points out the lack of standardization in financial aid offers, which can make comparison difficult.

There isn't a standard format and it can be difficult to determine what is grant and scholarship aid versus what needs to be paid back, making it tough for families to compare and fully understand what's being offered. - James Lewis

Lewis also recommends searching out other types of merit-based aid from employers, nonprofits and community organizations.

Financial aid offers are a good example. - James Lewis

In total there are over 1.7 million private scholarships and fellowships. Together, they provide more than $7.4 billion in funding, almost exclusively fronted through foundations, corporations and other independent organizations. Students should be able to ask their high school counselors, or look on sites such as Scholarships.com or the College Board’s Big Future, for these opportunities.

Castellano recommends using Google to research financial aid options.

Google is the best friend for families. - Rick Castellano

Mark Kantrowitz, a higher education expert, warns that staffing cuts at the Education Department could affect the support available to college financial aid offices. Though the Education Department administers the FAFSA and regulates colleges. Not only do they audit and perform program reviews, but they provide technical assistance to the financial aid offices of our colleges.

There might be delays in responses to student and borrower inquiries, and the accuracy of the responses may be affected. - Mark Kantrowitz