For many families, making the final college decision comes down to the financial-aid package offered by the institution.

There is no uniform formula for aid packages; they differ in size and makeup.

WHAT YOU SHOULD LOOK FORAn award letter should include the following:• Total cost of attendance which includes tuition, room, board, student fees, books, living expenses, etc.• Your expected family contribution.• The amount of need the college is meeting.• Financial aid in the form of grants and scholarships; loans or work-study.• The process for accepting or declining the aid, and the deadline for accepting the offer.• An explanation of how and when the money will be disbursed, and the academic period it covers.

BEFORE YOU ACCEPT ANY OFFERMake sure you distinguish between aid that reduces your costs — such as scholarships, grants or awards — and self-help aid, such as loans or work-study.An award letter offering federally subsidized Stafford Loans is allowing you to defer payment — not avoid it altogether. While it may look like an award, in the end, the family is the one assuming the debt here, not the college or university.Compare the aid packages by making sure that the cost of attendance covers the same elements for each college. Figure out your net cost to attend each college by subtracting the gift and scholarship aid from the cost of attendance.Check the loan terms and conditions. You should know the interest rate, the length of the loan, whether this is a student loan or whether the parent is obligated if the student defaults. Also check the interest is subsidized or unsubsidized.Find out if the aid is renewable. Some colleges offer a bigger package the first year, and then reduce the offer of free money and replace it with loans in subsequent years.Understand the college's policy on outside scholarships. Many colleges actually "penalize" you for finding more money outside of their aid awards.Colleges require you to report other scholarships you've received and can reduce their gift awards.Read the fine print for any strings attached. Frequently there are requirements to maintain a certain grade-point average, take a specific number of course credits or participate in athletics or extracurricular activity.Nail down any stipulations before accepting the offer, rather than risk losing the aid and maybe needing to transfer.Be aware of how you will receive the financial assistance. Find out if the college deducts the aid award from your college bill.Lee Bierer is an independent college adviser based in Charlotte, N.C. For more information, visit www.collegeadmissionsstrategies.com.