Soon after college-bound seniors receive their acceptance letter(s), the colleges to which they've been accepted will send them their financial aid award letters. Typically, colleges subtract the Expected Family Contribution (EFC) listed on the Student Aid Report (SAR) from the total cost of attendance to determine the student's financial need.

Financial aid can range from grants and scholarships to work-study and student loans. The award letter notifies students of the total amount and type(s) of aid the school is offering. The following our some tips to help you and your student compare award letters.

Ratio of grants to loans - Packages with a higher proportion of grant aid than loan aid is more appealing.

Ratio of self-help to grants - Self-help includes the EFC, loans and work-study. This is money and a work-study commitment that students are expected to cover. Students and their families must determine whether they will be able to meet these obligations.

Loan terms - Before signing on the dotted line, students should compare the various loans that are available. Different loans have different interest rates, discounts and repayment criteria. Subsidized Stafford Loans with low interest rates and no repayment until after graduation are more attractive than private or unsubsidized loans. The Union Plus Education Loan Program provides low-cost federal loans and private loans with rate reductions for automatic and on-time payments as well as strike benefits.

Gapping - The financial aid award the college offered does not cover the student's entire financial need. Students and their families must decide if they're willing to take on the additional responsibility of filling this "gap."

Beyond the 1st Year - Students should find out if all of their financial awards are renewable beyond their first year at college. Many awards are renewable, but may have conditions attached to the renewal agreement.

Scholarships - At some colleges, private scholarships may directly reduce the amount of institutional aid the college offers. Other colleges allow scholarships to reduce the amount of loans a student may have to consider to fill in the "gap."

If you or your college-bound student have questions related to the aid package, contact the financial aid office at the colleges your student is most interested in attending. The financial aid office works with students and their families to help them finds the best ways to finance their college education.

For more tools on analyzing financial aid awards including an award analyzer, visit the Union Plus College Planning Center.