I know my campus is unique in this respect, but all the sororities at my school make handmade letters. They're cheap to make- all you really need is some fabric, contact paper (like Heat 'n Bond) and clothing to put your letters on. You iron the contact paper to your fabric, trace the letters on, cut them out and iron them to the shirt. People then either sew them or puffy paint around the edges. Sewing takes longer, but makes for a long-lasting set of letters (puffy paint tends to crack after a while and shouldn't be put in the dryer). The fun thing with making letters is that you don't have to stick with the usual letter stencil; you can try out different "fonts" and make some really unique and fun shirts. They're also cheap to make, so many of the sororities make matching letters for informal recruitment events, fundraisers, intramurals, and other events. During our initiation week, we make handmade shirts and bags for our littles.
Professional letters definitely have a nice neat look about them, but I've only got a few sets of professional letters and the handmade ones tend to mean more to me (with the possible exception of my pledge class letters). If you're careful about it, you can also machine-sew homemade letters to look professional (although it's fun to make unique letters!). I'll see if I can get a photo to put up for you.
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