Esoteric jargon makes the financial aid process much more complicated than it needs to be, especially when those terms appear on every description, instruction, form, etc. Mark Kantrowitz of Edvisors offers up this 1-page glossary of financial aid terms, with a full list of over 750 terms here.
To use them, I have a few suggestions for families and for counselors who are less familiar with financial aid:
1. Learn the terms on the 1-page summary as if you need to explain to someone else what they mean (a reality for most counselors).
That level of understanding—to teach it well enough to pass that understanding on to someone else—is much deeper than the ability to recite a definition. When you really know the terms, you’ll find most parts of the process simpler and less intimidating.
One note on the definition—while grants and scholarships are different, they share one crucial trait: free money that does not need to be paid back. Grants and scholarships are always good news. They’re like discounts off the sticker price.
2. Bookmark the more complete list so you can reference it quickly and easily whenever you come across an unfamiliar term.