The school's total estimated cost for one year, including tuition, fees, housing, meals, books, and personal expenses. This is your starting number before any aid is applied — not necessarily what you will pay.

Free money awarded based on financial need, academic merit, or other criteria. You never have to pay grants or scholarships back. This is the most valuable type of aid in your package.

A federal program that gives you the opportunity to earn money through a part-time campus job. Unlike grants, work-study is not automatically applied to your bill — you receive a paycheck and decide how to use it.

Federal student loans where the government pays the interest while you are enrolled at least half-time. Repayment begins six months after you graduate or drop below half-time enrollment. These are the least costly type of loan.

Federal student loans where interest starts accumulating the moment you borrow — even while you are still in school. If you do not pay the interest while enrolled, it gets added to your principal balance, making your total debt grow faster.

Federal loans taken out in your parent's name, not yours. They carry higher interest rates than student loans and require a credit check. These are your parent's debt to repay — they are often listed in award letters to make the package look larger, but they are not aid to you.

The cost of attendance minus grants and scholarships only. This is the real amount your family is expected to cover each year — through savings, income, or loans. It is the most important number in your financial aid package.

Your total student loan debt at graduation divided by your expected first-year salary. A ratio of 1.0x or below is considered manageable. Above 1.5x means your loan payments will likely strain your budget significantly after graduation.

The percentage of students who complete their degree within four years. A low four-year graduation rate is a financial red flag — a fifth or sixth year adds tens of thousands of dollars to your total cost.

The official letter from a college listing the types and amounts of aid they are offering you for the upcoming year. Always read it carefully and separate free money from debt before comparing schools.

Money borrowed that must be repaid with interest. Student loans are a form of debt, not free aid. The total amount you borrow, plus interest that builds over time, determines how much you owe after graduation.

The total amount of money you owe. In the context of college, your student debt is the sum of all loans you have taken out across all years of school. It follows you after graduation and affects your financial options for years.

The annual income you earn from a job. When evaluating college costs, research the median starting salary for graduates in your specific field and at your specific school. This number tells you how quickly — or slowly — you will be able to repay your loans.