FAFSA & FINANCIAL AID BASICS
Words You Need to Know!
Cost of Attendance: The total cost of attending college. This will include direct costs paid to the college (like tuition and fees) and often indirect costs (like books and transportation).
Expected Family Contribution: The amount you and your family are expected to contribute toward college each year, based on your FAFSA form.
Scholarships or Grants: Free money for college awarded by the government, colleges or private organizations. One example is the federal Pell Grant for students with financial need.
Work-Study: Federal money you can earn by taking a part-time job on campus.
Federal Direct Government Loans: These loans come in two forms: subsidized and unsubsidized. The subsidized loans are for students in need and have easier repayment terms.
Parent PLUS Loans: These are federal loans that parents can use to cover education expenses. Interest rates vary.
Private Loans: These are offered by private lenders such as banks. They often charge higher fees and interest rates than federal student loans, and repayment terms may not be as flexible.