Financial Aid Terms Explained
Cut Through the Jargon and Understand Your College Costs
📌 Why Understanding Terms Matters
Financial aid can make or break your college decision.
If you don’t understand the language in your award letters, you could end up overpaying—or missing out on free money.
✅ Common Financial Aid Terms
FAFSA — Free Application for Federal Student Aid, the form used to apply for federal and state aid.
EFC (Expected Family Contribution) — An estimate of how much your family is expected to contribute toward college costs.
COA (Cost of Attendance) — The total estimated cost for one year of college, including tuition, housing, meals, books, and fees.
Grant — Free money for college that doesn’t need to be repaid. Often based on financial need.
Scholarship — Merit- or need-based award that doesn’t have to be repaid.
Work-Study — A program that provides part-time jobs for students with financial need.
Subsidized Loan — Federal student loan where the government pays the interest while you’re in school.
Unsubsidized Loan — Federal student loan where interest accrues from the time it’s disbursed.
Private Loan — Loan from a bank or lender, often with higher interest rates than federal loans.
✅ How to Use This Knowledge
Compare financial aid offers accurately
Identify free money versus debt
Avoid surprises in your college bills
🗣 Student Story
“I had no idea what half the words on my financial aid letter meant. College Refocus broke it down and helped me make the best financial decision.”
— Anderson SC
🎯 How College Refocus Helps
Explain award letters in plain language
Compare aid packages from multiple schools
Help you maximize grants and scholarships
Build a funding plan for all four years
📅 Get Clarity Before You Commit
We’ll help you understand every dollar in your award package.
👉 Schedule Your Free Financial Aid Review »