Glossary of Terms

Cost of Attendance (COA): The total estimated amount it will cost to attend a college for one academic year. This amount includes:

• Tuition: the amount it costs to enroll at a college and take classes.
• Room and Board (also sometimes shown as Housing and Food): the amount it costs to live at the college in their residence halls or other housing. This cost can also sometimes include meal plans for campus dining.
• Estimated living expenses: extra costs for things like food, utilities, rent (if living off- campus) or just other general everyday expenses.
• Estimated transportation costs: extra costs for things like gas (if driving to/from home), airfare (if flying to/from home), or sometimes public transportation like buses and trains.
• Estimated books and supplies: extra costs for things like textbooks, notebooks, tech and other materials you might need for your classes.
• Miscellaneous costs: extra costs or fees for things like college services, events, programs, weekend activities etc.

Direct Costs: Expenses that are paid to the college, such as tuition or housing.

Entrance Counseling: A short information session (20-30 minutes long) that explains your rights and responsibilities as a loan borrower, and must be completed by the student before loans are disbursed to pay for school.

Free Application for Federal Student Aid (FAFSA): The official form that students use to apply for financial assistance to help pay for college. The FAFSA asks a series of questions about income, assets and other factors, which is then shared with the colleges you’re applying to. This information helps determine your eligibility for loans, grants, work-study programs, state-based financial aid, school-based financial aid, scholarships and other aid.

Gift Aid: A type of financial aid that typically doesn’t need to be paid back. Gift aid comes with titles such as grants, scholarships, remissions, waivers or other awards. These can be based on many factors, including (but not limited to) financial need, academic excellence, athletics, musical talents and many other things. The only time gift aid might need to be repaid is if there are terms specified as a condition of the gift that have not been met (e.g. maintaining a certain GPA).

Grant: A form of financial aid that does not need to be repaid, also known as gift aid. Grants are typically based on financial need. (Please refer to “gift aid” to learn more!)

Indirect Costs: Expenses that are paid to someone else other than the college, such as rent to a landlord if you’re living off-campus.

Loan Promissory Note: A document you sign that says you promise to pay back any of the loans you take out to pay for college, and it must be completed before loans are disbursed.

Merit Aid: Financial aid given to students based on their personal achievements. Most scholarships are considered merit aid, as they are generally awarded for success in school, the arts, athletics or another area. (Please refer to “gift aid” to learn more!)

Net Cost/Out-of-pocket Cost: This is the amount of direct and indirect costs leftover after all gift aid (scholarships and grants) have been subtracted. This cost can be covered through a variety of sources including savings, income and loans.

Net Price Calculator: An online tool where you can enter information about yourself and it will give you a personalized estimate of what it might cost to attend a specific college.

Outside Scholarship: An online tool where you can enter information about yourself and it will give you a personalized estimate of what it might cost to attend a specific college.

Pell Grant: A grant provided by the federal government to qualified students who demonstrate above-average financial need. In order to qualify, your Student Aid Index (SAI – see below!) must be below a certain level set by the U.S. Department of Education. This type of financial aid typically doesn’t need to be repaid, and the college would automatically apply this to your aid package.

Student Aid Index (SAI): A measure of your family’s financial strength, calculated according to federal guidelines. The SAI is used to determine eligibility for need-based aid.

Student Loan: A form of financial aid that must be repaid with interest. Educational loans have varying interest rates and repayment terms.

• Federal Direct Student Loan: A type of loan provided by the U.S. Department of Education through the FAFSA application. You would be responsible for making payments starting six months after you are no longer taking classes full-time (for example: six months after you graduate).
• Subsidized Loans: A type of loan where the government pays the interest on the loan while the student remains enrolled in college at least half-time. Students must meet a certain level of financial need in order to qualify for this type of loan.
• Unsubsidized Loans: A type of loan where interest starts to accrue while the student is in school, and the student is responsible to pay the interest back on top of the loan amount.

Verification: The process of confirming that the information provided on your FAFSA is accurate. You might be asked to submit additional forms, identification or other documents.

Work-Study/Student Employment: Programs that provide part-time employment to college students who need the earnings to help meet their cost of attendance.