Also known as private education loans, these loans help pay the balance owed to the college after the financial aid has been applied to the bill. Generally, the borrower of an alternative loan is the student and a co-signer is required.

This is the notification of the terms and requirements of the financial aid package offered by a college. The award is prepared and sent to the student by the college.

The Profile is a financial aid application required by some colleges in addition to the FAFSA.

The total cost of attending college for one year. It includes tuition, books, fees, room and board, transportation and out-of-pocket expenses. The COA will vary from college to college.

An unmarried student under the age of 24 who has no dependents, is not a Veteran of the U.S. Armed Forces or ward of the court.

This loan repayment and debt management counseling session is required by federal regulations and conducted by a college's financial aid office. The student must attend an entrance interview before he/she can receive the first disbursement of any federally guaranteed education loan.

The total amount a student and his or her family are expected to pay toward college costs from their income and assets.

Financial Need is calculated by subtracting a family's Expected Family Contribution (EFC) form the Cost of Attendance. Financial Need is used to determine the amount of financial aid a student may qualify to receive. Financial need will vary from college to college.

A formula established by Congress that evaluates the expected family contribution to determine eligibility for all types of financial aid.

A federal need-based grant.

A federally sponsored campus-based program that provides employment opportunities for students with financial need.

The total financial aid award offered to the student, which may include grants, scholarships, loans, and work-study.

A form distributed by the federal government for use by students applying for federal financial aid programs. May be mailed or filed electronically using FAFSA on the Web at www.fafsa.ed.gov.

Student financial aid, such as scholarships and grants that does not need to be repaid.

A financial award that does not need to be repaid.

A student who is married, over the age of 24, has dependents, is a Veteran of the U.S. Armed Forces or is a ward of the court.

A formula used to determine eligibility for institutional funds.

Money borrowed that must be repaid with interest.

The MPN is a legally binding agreement the borrower signs, in which the borrower promises to pay the loan with interest. Under a MPN, the borrower may receive loans for multiple periods of enrollment. If used as a multi-year note, most borrowers will sign the MPN once and the note then remains valid. May be used to obtain additional federally guaranteed loan funds.

Financial aid that is merit-based depends on your academic, artistic, athletic merit or some other criteria, and does not depend on the existence of financial need.

Financial aid that is need-based depends on your financial situation. Most government sources of financial aid are need-based.

A federal need-based grant.

The PIN is your electronic signature for the FAFSA. Anyone who must sign the FAFSA will need a PIN. Most families apply for two pins: one for the student and one for the parent. Each person needing a PIN must apply for one at www.pin.ed.gov.

There are two types of federal PLUS loans available to help finance a student's education: the Parent PLUS and the Grad PLUS. The borrower may request up to the full cost of the student's attendance, less the amount of any other financial aid received. PLUS loans require a credit check, so a good credit history is required.

A financial award that does not need to be repaid.

Student financial aid, such as loans and federal work-study jobs that require repayment or a student's being employed.

Federal loans that come in two forms: subsidized and unsubsidized. Subsidized loans are based on need; unsubsidized loans are not.

A report produced by the U.S. Department of Education and sent to students who have applied for federal student financial aid. The SAR summarizes the information provided on the FAFSA.

A loan for which the government pays the interest while the student is in school, during the six-month grace period and during any deferment periods. Subsidized loans are awarded based on financial need.

Alternative method of payment designed by colleges, banks, insurance companies and financial management organizations. Most offer either prepayment or installment options.

A loan for which the government does not pay the interest. The borrower is responsible for the interest on an unsubsidized loan from the date the loan is disbursed, even while the student is still in school. Students may avoid paying the interest while they are in school by capitalizing the interest, which increases the loan amount. Unsubsidized loans are not based on financial need.

This is a review process to determine the accuracy of the information on a student's FAFSA. If selected for verification, a student is required to submit documentation (such as federal tax returns and verification worksheets) to support the information provided on the FAFSA.

During the verification process, a student may need to complete this form and return it to the financial aid office for review.