Learning to Speak Financial Aid: A National Knowledge Survey Exploring Financial Aid Jargon

• In Event: The Complexities of Paying for College

Abstract

Although extant research has demonstrated the Free Application for Federal Student Aid (FAFSA) and financial aid award letters are difficult for prospective students to understand, no research has examined specific financial aid jargon and whether prospective students recognize and understand this jargon. This study surveyed 1,200 prospective postsecondary students in the U.S. to learn whether they understood financial aid jargon terms at three different institutions of higher education: public, nonprofit private, and for-profit private four-year institutions. Results suggest the most common financial aid jargon terms prospective students do not understand are FAFSA, master promissory note (MPN), counseling, merit-based, and holistic. Implications for research and future survey development are addressed.

Authors

• Zach Taylor, University of Southern Mississippi

• Ibrahim Bicak, University of Chicago

• Jessica J Fry, The University of Texas at Austin