Is Your Financial Aid Missing? Why Your Tuition Bill Is Higher Than You Expected

For families across the country, this is a moment of high anxiety. College tuition bills are arriving, and as you try to set up payment plans, you might be staring at a balance that is thousands of dollars higher than you anticipated. Your first thought might be a mistake in the award letter, but the culprit is often something else: your awarded financial aid has not actually been applied. 

While a new federal verification rule is causing delays for some, it is not the only reason your funds might be in limbo. Even if you were not selected for verification, your aid could still be missing due to simple, but critical, steps that have been overlooked in the process.

Unpacking the Reasons for Your Missing Aid 

Before you panic, let's walk through the most common roadblocks that prevent awarded aid from paying down your tuition bill. 

Roadblock 1: The New Verification Hold 

To combat fraud, the U.S. Department of Education now requires some first-time FAFSA applicants to verify their identity with a government-issued photo ID. This can be done in person, via a live video call, or through a secure service, depending on what your college supports. If your student was selected for this, their federal grants and loans are on hold until it is complete. Check the student’s college portal for any "To-Do List" items related to this immediately or reach out to financial aid.  

Roadblock 2: Failure to "Accept" the Award 

This is one of the most common and easily fixable issues. Many colleges require students to manually log into their student portal and formally "Accept" each part of their financial aid award, from grants to loans. Simply receiving the award letter is not enough. If your student hasn't clicked "Accept" on the portal, the school assumes they don't want the aid, and it will not be applied to the bill. 

Roadblock 3: Incomplete Federal Loan Requirements 

If you are accepting federal student loans, there is a separate, mandatory process that happens outside of the college portal. The student (not the parent) must log into the official federal website, StudentAid.gov, using their own FSA ID to complete two critical items: 

• The Master Promissory Note (MPN): This is the legally binding agreement to repay the loan. 

• Entrance Counseling: This is a required online tutorial that ensures the student understands their rights and responsibilities as a borrower. 

Even if you "accepted" the loan on the college portal, the federal government will not release the funds to the school until the MPN and Entrance Counseling are complete. 

Your Action Plan: A 3-Step Check to Secure Your Funds 

With payment deadlines looming, you cannot afford to wait. Take control of the situation by running through this checklist now: 

1. Investigate the Portal: Have your student log into their college portal. Look for a financial aid "To-Do List" or "Requirements" section. Do they need to submit verification documents? More importantly, is there an option to "Accept/Decline Awards"? Make sure every grant or loan you want has been officially "Accepted." 

2. Finalize Federal Loans on StudentAid.gov: Do not just assume this is done. Have your student log into StudentAid.gov and confirm that both their Master Promissory Note (MPN) and Entrance Counseling are listed as "Completed." 

3. Contact the Financial Aid Office: If you have done all of the above and your aid is still not reflected on the bill, it is time to call the financial aid office. Ask them directly: "I have accepted my awards and completed the MPN and Entrance Counseling. Can you tell me what is holding up the disbursement of my aid?" 

Navigating tuition payments is stressful enough. By proactively checking for these common roadblocks, you can solve most issues and ensure your financial aid arrives on time, giving you a clear picture of what you truly owe.