FAFSA glossary.

Your total income minus specific deductions, as reported on your federal tax return. The FAFSA uses your AGI (from 2 years prior) as a key input to calculate your Student Aid Index.

A document from a college detailing the financial aid they're offering you, including grants, scholarships, work-study, and loans. Compare award letters by focusing on net cost — total cost minus free money (grants/scholarships).

A federal loan that combines multiple federal student loans into a single loan with one monthly payment. This can simplify repayment but may increase total interest paid over time.

Anyone who needs to add information to your FAFSA, usually a parent, stepparent, or spouse. Married parents who filed taxes jointly count as one contributor. Each contributor needs their own StudentAid.gov account. Being a contributor doesn't mean you have to pay for college.

The total estimated cost of attending a school for one academic year, including tuition, fees, room and board, books, supplies, transportation, and personal expenses. Schools calculate this figure — it's not just tuition.

A determination by a school's financial aid office that allows a dependent student to be treated as independent due to unusual circumstances (like an abusive home situation). You can't declare yourself independent — only the school can grant this.

A student who is required to provide parent information on the FAFSA. Most undergraduate students under 24 who aren't married, don't have dependents, and aren't veterans are considered dependent — regardless of whether their parents claim them on taxes.

The system that sends your federal tax information from the IRS straight to your FAFSA. It replaced the old IRS Data Retrieval Tool. Everyone on the form must give consent, even non-filers. Without consent, you can't get federal student aid.

A federal student loan made directly by the U.S. Department of Education. Includes Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans (for parents), and Direct Consolidation Loans.

A federal loan for parents of dependent undergraduates (Parent PLUS) or for graduate and professional students (Grad PLUS). Requires a credit check. Since July 1, 2026, Grad PLUS is closed to new borrowers and Parent PLUS is capped at $20,000 a year and $65,000 total per student.

A federal loan for undergraduate students with financial need. The government pays the interest while you're in school at least half-time, during your grace period, and during deferment. This is the best type of federal loan.

A federal loan available to all students regardless of financial need. Interest accrues from the day the loan is disbursed — including while you're in school. Available to both undergraduate and graduate students.

The process of paying financial aid funds to your school (which applies them to your account) or directly to you. Aid is typically disbursed at the start of each semester or term.

The OLD term for the amount a family was expected to contribute toward college costs. Replaced by the Student Aid Index (SAI) starting with the 2024-25 FAFSA. You may still see this term on older resources.

Free Application for Federal Student Aid. The form you fill out to apply for federal grants, loans, and work-study. Many states and schools also use your FAFSA data to award their own aid. It's free to file — never pay anyone to complete it.

Federal legislation that overhauled the FAFSA starting with the 2024-25 form. Reduced the number of questions, changed the need analysis formula, introduced the SAI, and changed how 529 plans and other assets are treated.

The summary you get after your FAFSA is processed. It replaced the old Student Aid Report (SAR) and shows your Student Aid Index and whether you may qualify for a Pell Grant. Review it and fix any errors on StudentAid.gov.

A federal grant for undergraduates with financial need. It doesn't have to be repaid. The maximum is $7,395 for 2026–27; the 2027–28 maximum hasn't been set yet. You can't get Pell if your SAI is at least twice the maximum ($14,790 for 2026–27).

A unique 6-character code assigned to each college that participates in federal student aid programs. You need this code to add schools to your FAFSA. Look them up at studentaid.gov.

A federal program that provides part-time jobs to students with financial need, allowing them to earn money to help pay for school. Not all schools participate, and funding is limited.

The difference between a school's Cost of Attendance (COA) and your Student Aid Index (SAI). Financial Need = COA - SAI. This number determines how much need-based aid you can receive from that school.

Another name for your StudentAid.gov account username and password. You need it to fill out and sign the FAFSA. The student and each contributor need their own.

A period after you graduate, leave school, or drop below half-time enrollment before you must begin repaying your federal student loans. For most Direct Loans, the grace period is 6 months.

Financial aid that does not need to be repaid (free money). Grants are typically awarded based on financial need. Federal grants include Pell Grants, FSEOG, and TEACH Grants. States and schools also offer grants.

Federal loan repayment plans that base your monthly payment on your income and family size. Loans made on or after July 1, 2026 use a new income-based plan called the Repayment Assistance Plan. Older loans may have other options. Check StudentAid.gov for what applies to you.

A student who doesn't need to give parent information on the FAFSA. For 2027–28, you're independent if you were born before January 1, 2004, are married, are a graduate student, are a veteran or on active duty, have dependents, were an orphan, in foster care, or a ward of the court at any time since you turned 13, or meet a few other specific rules.

The processed version of your FAFSA data that gets sent to the colleges you listed. Schools use the ISIR to determine your financial aid package.

The actual cost you pay out-of-pocket after all grants and scholarships are subtracted from the Cost of Attendance. Net Price = COA - Grants - Scholarships. This is the number you should compare across schools.

The federal law signed July 4, 2025 (Public Law 119-21) that changed student aid starting July 1, 2026. It ended Grad PLUS for new borrowers, capped Parent PLUS and graduate loans, added new Pell Grant rules and Workforce Pell, and stopped counting small family businesses and farms as assets. The Education Department now calls it the Working Families Tax Cuts Act.

A federal loan parents of dependent undergraduates can take out to help pay for college. Requires a credit check. Since July 1, 2026, it's capped at $20,000 a year and $65,000 total per student, and it can't be more than the cost of attendance minus other aid.

The tax year the FAFSA uses, two years before the school year starts. For the 2027–28 FAFSA, that's 2025 tax information. It means your taxes are already filed when the FAFSA opens.

The authority of a school's financial aid administrator to adjust your FAFSA data or aid package based on special circumstances (job loss, medical expenses, etc.). You must contact the school directly and provide documentation.

Financial aid (free money) typically awarded based on merit, talent, or specific criteria rather than financial need alone. Scholarships come from schools, private organizations, employers, and community groups.

A number calculated from your FAFSA information that represents your family's financial strength. Replaced the EFC starting 2024-25. Can range from -1,500 to 999,999. Schools subtract your SAI from their COA to determine your financial need.

Refers to loans where the government pays the interest during certain periods (while in school, grace period, deferment). Only available to undergraduate students with demonstrated financial need. Better than unsubsidized loans.

The gap between your financial need and the total aid offered. If your COA is $30,000, your SAI is $5,000 (need = $25,000), and you're offered $20,000 in aid, your unmet need is $5,000.

When a school asks you to confirm information from your FAFSA with documents, like tax records or proof of identity. Being picked doesn't mean you did anything wrong. Respond quickly so your aid isn't delayed.

Pell Grants for short, approved job-training programs of 150 to 599 clock hours that last at least 8 weeks but less than 15. Available since July 1, 2026. Only approved programs qualify.