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.
Published January/February 2001.