FAFSA Jeopardy: What Are the Terms Students and Parents Should Know?

Filling out the FAFSA can feel a little like stepping onto the set of Jeopardy! You’re presented with unfamiliar clues about financial aid, tax information, and your family’s finances... and expected to provide the right response.

The good news? You don't need to be a financial expert or FAFSA trivia champion to complete the form. Learning the answers to some of the most common FAFSA questions can make the process much less intimidating and help your family feel more confident when it’s time to submit the form.

Welcome to FAFSA Jeopardy, where every term is phrased as a question and the answers can help you navigate the financial aid process.

FAFSA Basics

What is the FAFSA?
The Free Application for Federal Student Aid is the form students complete to apply for federal financial aid for college. Many states, colleges, and universities also use FAFSA information when determining eligibility for their own financial aid.

What is Federal Student Aid (FSA)?
Financial assistance provided by the U.S. Department of Education to help students pay for education. This can include grants, work-study, and federal student loans.

What is an FSA ID?
The username and password used to access certain Federal Student Aid systems. Students and required contributors each need their own FSA ID and should never share it with someone else.

What is a contributor?
A person whose information is required on a student's FAFSA. Depending on the student's circumstances, this may include a parent or spouse. Being a contributor does not mean the person is automatically responsible for paying for the student's college education.

What is the Student Aid Index (SAI)?
The SAI is a number calculated from information provided on the FAFSA. Colleges use it as one factor when determining a student's eligibility for federal student aid. Despite its name, the SAI is not a dollar amount and is not the amount your family is expected to pay for college.

What is the Cost of Attendance (COA)?
An estimate of the total cost of attending a particular school for a specific period. It can include tuition and fees, housing and food, books and supplies, transportation and other education-related expenses.

What is financial need?
A student's financial need is generally determined by comparing the school's cost of attendance with the student's SAI and other factors used in the federal aid calculation.

Financial Terms You May See on the FAFSA

What are assets?
Assets are things a person or family owns that may have financial value. Depending on the FAFSA question, this can include money in cash, savings and checking accounts, investments, and certain other assets.

What are cash, savings, and checking accounts?
The money currently held in these accounts. FAFSA questions may ask for the current value or balance rather than an annual total.

What are investments?
Certain financial assets, such as stocks, bonds, mutual funds, and other investments. The FAFSA has specific rules about which investments should be reported.

What is net worth?
The value of an asset after subtracting applicable debts or liabilities. FAFSA questions about certain investments or businesses may ask for their net worth.

What is business or farm net worth?
The value of a business or farm after subtracting its associated debts. FAFSA instructions determine what should and shouldn't be included.

What is child support received?
Child support payments received on behalf of a child may need to be reported in certain circumstances. This is separate from income earned through employment.

What are pension or retirement accounts?
Retirement accounts, such as 401(k)s and traditional IRAs, generally receive different treatment from regular investments when completing the FAFSA. Don't automatically assume that every account you own belongs in the FAFSA's asset section.

Types of Financial Aid

Once you understand the FAFSA terminology, it also helps to know what the FAFSA can potentially help you access.

What is a grant?
Financial aid that generally does not need to be repaid, provided the student meets the applicable requirements.

What is a scholarship?
Financial assistance that generally does not need to be repaid and may be awarded based on academic achievement, financial need, talents, interests, background, or other criteria.

What is Federal Work-Study?
A federal program that provides eligible students with opportunities to earn money through part-time employment. Work-study funds aren't simply deposited into a student's account like a grant; students generally earn the money through their work.

What is a federal student loan?
Money borrowed through the federal student loan program that must generally be repaid with interest.

What is a Direct Subsidized Loan?
A federal student loan available to eligible undergraduate students with demonstrated financial need. The federal government pays the interest during certain qualifying periods.

What is a Direct Unsubsidized Loan?
A federal student loan available to eligible undergraduate and graduate students. Unlike subsidized loans, the borrower is responsible for the interest that accrues.

What is a Parent PLUS Loan?
A federal loan available to eligible parents of dependent undergraduate students to help pay for education expenses. Unlike grants or scholarships, it must be repaid with interest.

PRO TIP: Want to learn more about financial aid beyond the FAFSA? You should read our Financial Aid 101 E-Guide to get up-to-date knowledge about paying for your college journey!

A Few Terms Students Should Know Beyond the FAFSA

The FAFSA is just one part of the financial aid process. Once you submit it, you'll encounter additional terminology from colleges and financial aid offices.

What is a financial aid offer?
A college's written offer explaining the types and amounts of financial aid a student may be eligible to receive at that school. Offers can include grants, scholarships, work-study and loans.

What is net price?
The estimated cost of attending a college after subtracting grants and scholarships from the published cost of attendance. This can be a more useful number for families to consider than tuition alone.

What is a net price calculator?
An online tool that provides an estimate of what a student may pay to attend a particular college after accounting for potential financial aid.

What is Satisfactory Academic Progress (SAP)?
The academic requirements students generally need to meet to remain eligible for federal financial aid. Each school establishes its own SAP policy within federal requirements.

What is disbursement?
The process by which financial aid funds are applied to a student's account or otherwise provided to the student, typically after the student meets applicable requirements.

What is an award year?
The period for which financial aid is awarded. FAFSA applications correspond to specific award years, so make sure you're completing the FAFSA for the correct year.

Don't Know a FAFSA Term? Don't Guess.

The FAFSA may look overwhelming at first, but you don't have to memorize every financial aid term before getting started.

If you're unsure about a question, read the instructions carefully and use the help resources provided within the FAFSA. Avoid guessing or entering information simply because a term sounds familiar. Tax documents and financial records can also help you find the information you need.

Most importantly, remember that completing the FAFSA is not a test and you don't need to get every answer right on the first try. With the right information, you can turn FAFSA confusion into financial aid confidence.

Need help with the FAFSA or have questions about paying for college? The RISLA College Planning Center offers free college planning and financial aid assistance for Rhode Island families.