I found this interesting and if you do too, cool. Brandon Knight, a top basketball recruit headed to Kentucky, opted to sign a financial aid offer instead of your traditional LOI.
The difference between the two is that while both guarantee a scholarship, a financial aid offer sheet allows the recruit to back out without an appeals process. The only thing he can't do is go to another SEC school.
Read the article for more. Any thoughts on FAO vs LOI? I think LOIs give the universities too much powers and FAOs may be a little better for the players (although only top talent can get away with signing them).