Key Terms for Understanding Education Costs
Our glossary explains important terms related to paying for college, trade school, and other education expenses in clear, simple language so you can make informed decisions with confidence.
College Planning Costs
| Term | Definition |
| Activity Fee | A fee that helps pay for student events, clubs, recreation, and campus programming. |
| Award Letter | A document from a college that explains the financial aid offered to a student. |
| Books and Supplies | The estimated cost of textbooks, course materials, software, and school supplies needed for classes. |
| Budget | A plan for how to spend and save money. |
| Cost of Attendance | The total estimated cost of going to college for one year, including tuition, fees, housing, food, books, and other expenses. |
| Course Materials | Items required for a class, such as textbooks, online access codes, art supplies, calculators, or uniforms. |
| Credit Score | A three-digit number, typically between 300 and 850, that represents a person's creditworthiness based on their credit report. Lenders use this score to assess the risk of lending money and to determine eligibility for loans, credit cards, and better interest rates. |
| Course Credit | A standard unit measuring academic work, representing successful completion of a course and its contribution toward graduation |
| Direct Costs | Expenses paid directly to the college, such as tuition, fees, and on-campus housing. |
| Enrollment Deposit | A payment students make to hold their place at a college after deciding to attend. |
| FAFSA | The Free Application for Federal Student Aid, which students complete to apply for federal financial aid. |
| Financial Aid | Money that helps students pay for college, including grants, scholarships, work-study, and loans. |
| Grant | Money for college that usually does not have to be paid back. |
| Health Insurance Fee | A charge some colleges add if students are required to have health insurance through the school unless they qualify for a waiver. |
| Housing Costs | The amount a student may pay to live on campus in a residence hall or off campus in an apartment or house. |
| Indirect Costs | College-related expenses that may not be paid directly to the school, such as transportation, personal items, and some books or supplies. |
| Lab Fees | Additional costs for classes that use labs, special equipment, or supplies, such as science, health, art, or technology courses. |
| Meal Plan | A prepaid campus dining plan that gives students access to meals during the school year. |
| Net Cost | The amount a student may need to pay after grants and scholarships are subtracted from the total cost of attendance. |
| Orientation Fee | A charge that may cover new student orientation programs, materials, or activities before classes begin. |
| Personal Expenses | Estimated costs for everyday needs such as clothing, toiletries, laundry, and other miscellaneous items. |
| Room and Board | The cost of housing and meals while attending college. “Room” means where you live, and “board” means your meal plan or food costs. |
| Savings | Money set aside for future expenses, such as education. |
| Scholarship | Money awarded to help pay for college that does not need to be repaid. |
| Student Fees | Extra charges added to tuition that help cover services, activities, technology, campus facilities, or other student resources. |
| Student Loan | A loan used to pay for college costs. |
| Technology Fee | A fee that helps support campus technology, internet access, computer labs, or online learning systems. |
| Transportation Costs | Estimated expenses for getting to and from campus, including gas, parking, public transit, or trips home. |
| Tuition | The cost of taking classes at a college or university. |
| Tuition and Fees | The combined cost of taking classes plus required school charges. This amount does not always include housing, meals, books, or personal expenses. |