Tuition vs. Cost of Attendance- Tuition is the basic money paid for your academics at a college. Don’t look at tuition alone with examining costs, though. Cost of attendance includes all the other expenses that come up: room and board, books, other school fees, etc. Cost of attendance is a much better measure of the real financial impact of attending a given school.
Scholarships– Scholarships are “free” money given to you that you have earned through merit or financial need. Often, you need to apply separately for scholarships. Every little bit adds up!
Grants– Grants are “free” money given to you by schools and the government. You don’t have to pay grants back. They are often awarded on the basis of financial need and tend to be pretty modest.
Loans– Loans are money you do have to pay back. The lower the interest rate, the better. Federal (government) loans are generally grouped into two categories: subsidized and unsubsidized. Subsidized loans are ones you don’t have to pay interest on until you leave school. Unsubsidized loans are ones that accrue interest while you are in school. If you have the choice of taking subsidized vs. unsubsidized loans, subsidized loans are better because they save you money on interest in the long run. Private loans are ones you would get from a bank or another lender. They almost always have higher interest rates than federal loans. Don’t borrow more money than you need, and try to prioritize paying off higher interest loans first.
Work-Study– These programs employ students on campus to help them pay down money they owe to the university. There are pros and cons to participating in a work-study arrangement, but much of that varies from school to school.
FAFSA (Free Application for Federal Student Aid)– This is a government application for loans and grants that all families are STRONGLY encouraged to fill out in fall of the senior year. Most universities require applicants to complete the FAFSA before they will be considered for scholarships or other aid. The FAFSA must be completed every year that you’re in college to maintain eligibility for federal loans and other aid.
EFC (Expected Family Contribution)– This is the amount of money the FAFSA says your family should be expected to be able to contribute for your college expenses. Loans, grants, and some scholarships are affected by your EFC. Generally, the lower your EFC, the more financial need you have exhibited.
CSS Profile– This is an additional financial aid application run by College Board (the people who bring us AP and SAT exams). Some universities require students to fill out the CSS profile in addition to the FAFSA in order to consider those students for additional aid. The CSS profile costs money per school ($25 for the first school and $16 for each additional school), but fee waivers are available for students who are eligible.