Financial aid paperwork is full of terms that sound similar but mean very different things for your wallet. Here's a plain-language breakdown of the ones that matter most.
Grants vs. Loans
Grants don't need to be repaid — think of them as free money based on need or merit. Loans do need to be repaid, usually with interest, so they should be your last option, not your first.
Subsidized vs. Unsubsidized Loans
With subsidized loans, the government covers interest while you're enrolled at least half-time. With unsubsidized loans, interest starts accruing immediately — even before you graduate.
Work-Study
This is a part-time job, usually on campus, funded partly by financial aid — money you earn, not money you owe.
Before accepting any aid package, read exactly what type of aid is what — it's the difference between money you keep and money you'll be paying back for years.
