FEBRUARY 2026

Tuesday Tips



Financial Aid Offers Are Here – Now What?!

Understand the Different Types of Aid

Financial aid offers often include a mix of three types of aid: gift aid, federal student loans, and work-study.

• Gift Aid: This is the best type of aid as it doesn’t need to be repaid - aka “free money.” Examples include need- and merit-based scholarships, grants, and waivers. 
• Federal Student Loans: These are loans that must be repaid with interest when you leave school.
• Work-Study: Unlike gift aid and loans, work-study is aid that is not applied to your bill, but instead represents money you’ll earn by working a part-time job. You’ll receive your earnings in a paycheck, which you can use for items like laundry, gas, and other school expenses.

Net Cost: The Real Bottom Line

When reviewing your financial aid offers, net cost is what you are looking for and will give you an estimate of what each school will cost you. Here’s the breakdown:

Net Cost =

The school’s direct or billable costs (tuition, fees, housing, and food) - any gift aid you receive.

What is left is an estimate of the amount you’ll pay for one year of school.



FAME’s Comparing Costs and Financial Aid Offers Worksheet is a great resource to help you quickly and easily determine the net cost for each school you’re considering.

Keep in mind, there will be additional expenses not billed by the school like books, supplies, travel, and miscellaneous expenses. Schools typically provide an estimate of these indirect expenses, but they may be higher or lower depending on your circumstances. LEARN MORE

Know the Terms of your Aid

Just like any agreement, it’s essential to “read the fine print” so you know what to expect. Details such as your level of enrollment (full-time vs part-time) or housing situation (on-campus, off-campus, or living at home) can affect the types and amounts of aid you’ll receive. It's important to carefully review your financial aid offer, and if anything in your offer doesn’t match your situation, reach out to the financial aid office for clarification. Additionally, a few types of aid, like merit scholarships, may be renewable, but only if you meet certain criteria, like maintaining a certain GPA or continuing to be enrolled full-time. Understanding these conditions now can help you avoid surprises later. 

Keep Hunting for That Free $$$

For many students there is still a funding gap even after financial aid is applied. This can be stressful, but here’s the good news: now is a great time to start or continue your scholarship search. There are still plenty of “outside” scholarships (awards offered by organizations outside of the colleges you’re considering) accepting applications for the upcoming academic year. You have now until your fall bill is due to apply for as many scholarships as you can. This truly is a you-get-what-you-put-in situation where spending just an hour or two a week can make a real difference.

FAME offers helpful tools to support your search, including resources on FAME’s scholarship search webpage. LEARN MORE

And remember, scholarship hunting isn’t a one-time thing! Apply for scholarships every year to help keep costs down and get the bill paid.

Use the Piecemeal Approach to Tackle That Remaining Balance

Breaking your remaining balance into smaller pieces can help make paying the bill more manageable. Here are some examples:

• Even if you already have some savings, use the time before school begins to save more and chip away at that balance. Are you working a summer job? Set a goal to save a percentage of your earnings (maybe 25-50%) to put towards your bill or other school expenses, like books.
• Most schools offer payment plans that allow you to pay part or all of the remaining balance over a period of months. Unlike loans, payment plans are interest-free (though there may be a small enrollment fee).
• For some families, private loans may be part of the solution. Unlike the federal subsidized and/or unsubsidized student loans typically included as part of your financial aid offer, private loans are credit-based and typically require a creditworthy co-borrower. If you’re considering borrowing, think about the return on investment and what level of debt will be reasonable to repay after school. Use FAME’s Student Loan/Salary Calculator to get a sense of how much borrowing will be manageable based on potential earnings. LEARN MORE

We’re Here to Help!

If you would like one of FAME’s experts to help you review your financial aid offers, sign up for an Education Affordability Coaching session at FAMEmaine.com/contact. Or reach out through another channel!

• Call us at 1-800-228-3734 (8 AM to 4:30 PM)
• Email us at Education@FAMEmaine.com
• Visit our website at FAMEmaine.com

We're Here to Help!

FAME's Education Affordability & Financial Wellness Team

Connect with Us!

The Finance Authority of Maine (FAME) does not discriminate in the administration of any of its programs or in its employment practices on the basis of race, color, national origin, age, gender, religion, physical or mental disability, political affiliation, marital status, or sexual orientation. FAME is an equal opportunity employer, provider, and lender.

FAME provides links to other websites as a convenience and does not endorse or guarantee the content, accuracy, or usability of such sites.