Financial aid glossary, every term in plain English
The words colleges use around money are half the confusion. Here are the ones that matter, translated.
The forms
FAFSA. The Free Application for Federal Student Aid: the one government form that unlocks federal grants, work-study, loans, and most state and college aid. Free to file, every year of college.
FSA ID. The username and password you create at studentaid.gov to sign the FAFSA. It is not the FAFSA itself, it is the login for it. The student needs one and one parent needs their own, and each can take a few days to verify.
CSS Profile. A second, more detailed aid form that some private colleges require for their own institutional grants. It has a fee, but fee waivers are automatic for lower-income families.
The numbers
SAI (Student Aid Index). The number the FAFSA calculates from your family's finances. Colleges use it to decide need-based aid. It replaced the old "EFC," and it can even be negative.
COA (Cost of Attendance). A college's full yearly price: tuition, fees, housing, food, books, and travel. Aid is measured against this number, not tuition alone.
Net price. What your family actually pays: cost of attendance minus grants and scholarships. Two colleges with very different sticker prices can have similar net prices, so always compare net.
The money
Grant. Free money based on financial need (Pell, state grants, a college's own grants). Never repaid.
Scholarship. Free money based on merit, interests, background, or essays. Never repaid.
Pell Grant. The main federal grant, up to about $7,400 a year. No separate application; the FAFSA is the application.
Merit aid. Discounts a college gives for grades, scores, or talent regardless of financial need, often automatic with admission.
Work-study. A part-time campus job offered as part of an aid package. You earn it as wages; it is not a discount on the bill.
Subsidized loan. A federal student loan where the government pays the interest while you are in school. If you must borrow, this is the best kind.
Unsubsidized loan. A federal loan that grows interest from day one, even during school.
Put this to work, free
The guide turns all of this into your own plan: the grants and scholarships you qualify for, a FAFSA estimate, real college costs, and every deadline in one place. No account, and nothing you enter ever leaves your device.
Start a free planCommon questions
What is the difference between the FAFSA and the FSA ID?
The FAFSA is the aid application. The FSA ID is the username and password you create at studentaid.gov to sign it. The student and one parent each need their own FSA ID, and they can take a few days to verify, so make them early.
What is a good SAI?
There is no single 'good' number; the lower your Student Aid Index, the more need-based aid you may receive, and it can even be negative for lower-income families. Filing the FAFSA early matters more than optimizing the number.
Is net price or sticker price the number that matters?
Net price. It is the cost of attendance minus grants and scholarships, which is what your family actually pays before loans. Two colleges with very different sticker prices can have similar net prices, so always compare net.
Reviewed as of July 5, 2026. Federal and state aid rules change; this guide is re-verified on a schedule, but always confirm specifics at studentaid.gov and each college's aid office.