Plain-English definitions for the terms you'll encounter on your financial journey.
Money kept in a liquid form to cover short-term obligations or unexpected financial needs.
A federal loan for undergraduate students with financial need where the government pays the interest while the student is in school.
A federal loan available to both undergraduate and graduate students regardless of financial need, where interest starts accruing as soon as the loan is issued.
A subsidy from the U.S. federal government for students with exceptional financial need to help pay for college. This type of aid generally does not have to be repaid, unlike a student loan.
A direct government subsidy awarded to undergraduate students who demonstrate exceptional financial need to help pay for post-secondary education. Unlike traditional student loans, these grants generally do not require repayment by the recipient.
A federal program that provides part-time jobs for undergraduate and graduate students with financial need to help pay for their education costs.
The difference between a student's total cost of attendance and their family's calculated ability to pay for school.
A distribution from a 401(k) or similar plan due to an immediate and heavy financial need, such as medical bills or preventing eviction.
An emergency distribution from a retirement plan allowed for an immediate and heavy financial need, such as medical bills or preventing eviction.
Financial aid awarded primarily on the basis of a student's talents, academic records, or extracurricular activities rather than financial need.
Financial aid awarded based on a student's achievements in academics, sports, or other talents rather than financial need.
A federal subsidy for students with exceptional financial need that generally does not have to be repaid to the government.
A federal student loan for which the government pays the interest while the borrower is in school at least half-time. These loans are based on financial need.
A federal student loan where the borrower is responsible for all interest that accrues from the time the loan is issued. These loans are not based on financial need.
A federal program that provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses.