Financial aid is generally available to US citizens and permanent residents directly from colleges, often on a need-blind, need-based basis, which means (i) that an application is considered without regard to the financial requirements of the applicant and (ii) that, if the student is accepted, the college will provide the financial aid package (tuition grants, loans, etc.) required to permit the student to attend. Many college sites, such as Princeton's, have interactive financial aid simulation forms that let you input your family's financial data and give you an estimate of what your financial aid package would be.

For students of other nationalities, however, and with the notable exceptions of Harvard, MIT, Princeton, Yale, Williams, Dartmouth and Amherst, which are need-blind and need-based regardless of nationality, colleges are rarely generous with financial aid.

In the land of financial aid, knowing the native dialect is half the battle. Before you can learn how to get help funding your education, you first need to understand all those strange terms and acronyms. Here is a glimpse at the language you can expect to encounter when applying for financial aid.

Award Letter: An official document issued by a financial aid office listing all financial aid (scholarships, grants, loans and/or work study) awarded to the student. The award letter will include information about the cost of attendance and terms and conditions for financial assistance.

Campus-Based Aid: Financial aid programs administered by the university. The federal government provides the university with a fixed annual allocation, which is awarded by the financial aid administer to deserving students. The Perkins Loan Program, Supplemental Education Opportunity Grant (SEOG) and Federal Work-Study are examples of campus-based aid.

EFC (Expected Family Contribution): Amount a family is expected to contribute to a student's education, based on family earnings, net assets, savings, size of the family, and number of students in college. This amount will appear on the Student Aid Report (SAR) that the student receives from the federal government.

FAA (Financial Aid Administrator): A college or university employee who is involved in the administration of financial aid. Also known as the financial aid advisors, officers, or counselors. Students with specific questions about the financial aid available at individual colleges should contact the FAAs at those schools.

FAFSA (Free Application For Federal Student Aid): The form that must be completed by students and parents applying for federal student aid. The form is generally available at the start of the new year and students are advised to submit it as soon as possible after January 1 of the year that they are applying to college.

FWS (Federal Work Study Program): This federal program provides part-time jobs for undergraduate and graduate students with financial need, allowing them to earn money to help pay education expenses.

Financial Aid Package: The total amount of financial aid (federal and nonfederal) such as scholarships, grants, loans, and/or work-study for which a student is eligible. The package is disclosed in the award letter sent to the students from the school where they are admitted.

Financial Need: The difference between the cost of attendance at a college and the Expected Family Contribution (EFC). Also known as financial aid eligibility.

Gift Aid: Financial aid, such as grants and scholarships, which does not need to be repaid.

Grants: Financial aid awards that do not have to be repaid. Grants are available through the federal government, state agencies, and colleges.

Lender: A bank, credit union or other financial institution that provides funds to students or parents for an education loan. Loan: A type of financial aid that is available to students and to their parents. Student loan programs have varying interest rates and repayment provisions. An education loan must be repaid.

PLUS (Parent Loans for Undergraduate Students): Federally insured loans that allow parents of dependent students to borrow up to the full cost of the student's education minus the financial aid received. Credit-worthy parents are eligible to borrow a PLUS loan regardless of family income.

Pell Grant Program: The largest federal grant program. Students who meet federal criteria for financial need automatically receive this grant, which does not require repayment. Once a student accepts this offer, the grant is automatically credited to his college account.

Perkins Loan Program: Federally insured loans funded by the federal government that are awarded by the school to students based on great financial need. The loans feature a low interest rate and are repayable over an extended period.

Prepaid Tuition Plan: A college savings plan that is guaranteed to rise in value at the same rate as college tuition. For example, if a family purchases shares that are worth half a year's tuition at a state college, they will always be worth half a year's tuition, even 10 years later when tuition rates will have doubled.

SAR (Student Aid Report): A report summarizing financial and other information reported on the FAFSA, sent to a student by the federal government. The student's financial aid need or eligibility is indicated by the Expected Family Contribution (EFC), which is printed on the document.

SEOG (Supplemental Education Opportunity Grant): This federal grant is awarded to low-income students based on availability of funds at the college, and does not require repayment. Once accepted, the grant is credited directly to a student's college account.

Stafford Loans: Federally insured, low-interest rate student loans for which borrowing limits vary depending on a student's year in college. There are two types of Stafford Loans:

• Subsidized Stafford Loans: Loans awarded to students who demonstrate financial need (i.e., need-based loans). The federal government pays the interest on these loans while students are in school and during a grace and deferment period.
• Unsubsidized Stafford Loans: Loans available to students regardless of financial need (i.e., non-need-based loans). Borrowers pay interest on these loans while in school, or may defer payment and allow interest to accrue.