FAFSA (Free Application for Federal Student Aid): The form to apply for financial aid from the U.S federal government, including both federal loans and grants. All colleges require this form.

Stafford Loan: Loans that are subsidized by the federal government, which means that you don’t have to begin paying the back until six months after you graduate from college.

Pell Grant: A need-based grant given by the federal government. You don’t have to pay this back.

Institutional grant: A need-based grant given by the college you attend.

Merit scholarship: A scholarship most often given by the college you attend, which is awarded based on academic or other qualifications, not on financial need.

Work-study: A program subsidized by the federal government in which the government helps a college pay you to work on campus.

Financial aid package: The combination of grants, loans, and work-study that a college offers you to help pay for college costs.

Family contribution: The amount of money you and your family can contribute to paying for your education, determined by analysis of the FAFSA, Profile, and/or an institutional financial aid form.

Demonstrated need: The difference between the cost of attending a college (tuition and room and board) and the family contribution. A college that says it meets “full need” is referring to demonstrated need.

Written by Jennifer Gross.