FAFSA stands for Free Application for Federal Student Aid. This form is used to determine the amount of money a family is expected to contribute to the price of attending a postsecondary institution. The results of the FAFSA are used in determining grant and loan amounts.
- Federal Student Loan – a loan funded by the federal government to help pay for your education. A federal student loan is borrowed money you must replay with interest.
- Grant – Financial aid, often based on financial need, that does NOT need to be repaid (unless, for example, you withdraw from school and owe a refund).