Understanding financial aid can feel overwhelming, and that's normal. When it comes to figuring out your college costs, it is important to consider:

  • Your estimated bill to the university
  • Grants and scholarships that you do not repay
  • How much optional borrowing you want to take on

This information is all part of your Penn State Financial Aid Offer, which can be accessed through LionPATH. 

Our step-by-step guide below can walk you through understanding your Financial Aid Offer. Still need some assistance? We're happy to go over with you one-on-one—just reach out to our team.

Step-by-step guide to your offer letter

Your financial aid offer may look complicated at first, but if you consider each box separately, it’s actually telling a clear story. The easiest way to read it is to focus on the first three boxes, starting at the top.
 

Chart from Financial Aid Offer letter showing Estimated Billing Expenses, including amounts for Tuition, Fees, Food, and Housing totaled by semester and by full year.

Estimated Billable Expenses

This box shows the costs that will appear on your Penn State bill. You'll see: 

  • Tuition and fees
  • Housing and food (if you plan to live on campus)

These amounts are shown by semester and as a total for the year.

Note that the expenses are just estimates. Your final charges will depend on your enrollment and housing choices and other factors.

Chart from Financial Aid Offer letter showing Estimated Financial Aid, including amounts for Estimated Grants and Scholarships and Estimated Loans, totaled by semester and by full year.

Estimated Financial Aid

Think of this as the money to help cover the charges listed in Estimated Billable Expenses (Box 1).

This box shows the financial aid you’ve been offered from federal, state, and Penn State sources. It is split into two important parts:

Estimated Grants and Scholarships

This is money that does not need to be repaid. It includes:

  • Federal Pell Grants
  • PA State Grants
  • Penn State grants and scholarships

Estimated Loans

This is money that does need to be paid. It includes:

  • Federal Direct Subsidized Loans
  • Federal Direct Unsubsidized Loans

Loans are optional. If you choose to borrow, repayment typically begins after you leave school.

Chart from Financial Aid Offer letter showing Estimated Payment to University, including amounts for Estimated Billable Expenses, Grants and Scholarships, and Loans, totaled by semester and by full year.

Estimated Payment to University

This is your estimated Penn State bill—the most important number for many families. 

It shows your Estimated Billable Expenses (from Box 1) minus your Estimated Financial Aid (from Box 2) to arrive at the amount that you would owe Penn State, with amounts shown by semester and in total for the year.

Chart from Financial Aid Offer letter showing Estimated Non-Billing Expenses, Books, Course Materials, Equipment and Supplies; Transportation; Sub/Unsub Loan Fees; and Miscellaneous; as well as Net Price amounts, all totaled by semester and by full year.

Estimated Non-Billable Expenses

These are real costs to consider when budgeting for college, but they are not costs that are billed by Penn State. These are things like:

  • Books and course materials
  • Transportation (gas, parking, and costs to travel home for breaks)
  • Personal and miscellaneous expenses (laundry, personal care, meals out)

Net Price

Think of this box as a planning tool—not a bill. 

This box adds up your Estimated Billable Expenses (Box 1) and your Estimated Non-Billable Expenses (see above) to arrive at a Total Cost of Attendance. It then subtracts Grants and Scholarships to arrive at a Net Price.

Remember that this is not the amount that you will pay Penn State. It is just meant to be a budgeting and comparison tool to help you understand the overall cost of attendance.