Pay Careful Attention to Total Debt
Loans must be repaid. Heights University is offering 
Nejemiah $5,500 in loans for his freshman year.  
If he graduates college in four years and receives 
the same amount of loans each year, he will owe 
$22,000 when finished college. In addition, if his 
family takes out a loan to cover the difference  
between Nejemiah’s financial aid award and the  
cost of attending Heights University, they will owe  
an additional $9,200 in loans. Combined, that means  
that Nejemiah and his parents will owe $31,200 
when he graduates from college. They will be legally 
obligated to pay back that money, plus interest.
 HEIGHTS UNIVERSITY
March 18, 2027
Nejemiah Lewis
1234 Heights Avenue
Philadelphia, PA 19120
Dear Nejemiah,
Congratulations on your admission to Heights University!
Based on the information that you submitted in your FAFSA, you are eligible to receive the following financial aid for the 
2027–2028 school year. Changes in your enrollment, housing, residency, financial, or other information may result in adjustments  
to this offer. Please let us know as soon as possible about any changes in your status while at Heights University. Further,  
to maintain eligibility for the Dean’s Scholarship, you must earn a GPA of 3.2 or above each semester at Heights University.
In order to receive your aid payment, you must demonstrate satisfactory academic progress. If a Pennsylvania State Grant  
is listed below, it is only an estimate until PHEAA sends you an official award notice.
TYPE OF AID	
FALL 2027	
SPRING 2028
Dean’s Scholarship	
$ 5,200	
$ 5,200
Federal Pell Grant	
$ 3,000	
$ 3,000
Pennsylvania State Grant	
$ 1,800	
$ 1,800 
Pennsylvania Foundation Scholarship	
$ 1,900	
$ 1,900
State University Scholarship	
$ 1,200	
$ 1,200
Private Foundation ABC Scholarship	
$ 1,500	
$ 1,500
Private Foundation XYZ Scholarship	
$ 1,500	
$ 1,500
Federal Direct Subsidized Loan	
$ 1,750	
$ 1,750
Federal Direct Unsubsidized Loan	
$ 1,000	
$ 1,000
Federal Work-Study	
$ 1,000	
$ 1,000
Total	
$ 19,850	
$ 19,850
Total Aid for Academic Year 2027–2028 = $39,700
Sincerely,
Rida Ahmed
Director of Financial Aid
*This letter is fictional, designed to demonstrate the components of a financial aid package. Actual amounts will vary greatly.
Understand the Numbers
The total cost of attending Heights University is $42,000 for the 2027-2028 
academic year. The school is offering Nejemiah $39,700 in financial aid,  
including $5,500 in loans that must be repaid, and $2,000 in Work-Study  
that must be earned. Nejemiah and his family will need to contribute  
$2,300 toward his college education for the 2027-2028 academic year.  
If Nejemiah’s family does not have this money available, his parents can  
apply for a Federal Direct PLUS Loan or a private loan.
Paying for College
49

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