Financial aid can feel like its own language. This guide explains the terms you are most likely to see while applying for aid, reviewing your offer, paying your bill, and receiving a refund.

 

Start Here: Know the Difference

• Grant
• Scholarship
• Loan
• Work-Study

 

Three Things Students Often Mix Up

 

A-Z Financial Aid Glossary

Program rules and eligibility requirements can vary.

 

Academic Year / Aid Year — The period of time used to award financial aid. Most WKU students receive an annual aid offer that covers Fall and Spring, with separate rules for other terms.

Aid Offer / Financial Aid Offer — The list of financial aid you are eligible to receive. It may include grants, scholarships, loans, and work-study. An offer does not mean the money has already been accepted or paid to your account.

Balance — The amount you still owe on your WKU student account after charges, payments, and any financial aid that has disbursed are considered.

Big Red Backpack Program — Big Red Backpack is an opt-out course materials delivery program that lowers the cost of course materials and ensures students have their required course materials on the first day of class. For the 2026-2027 academic year, the cost is $26 per credit hour each semester.

CAP Grant — A need-based grant for eligible Kentucky undergraduate students. Because it is a grant, it generally does not have to be repaid.

Contributor — A person whose information is required on a FAFSA, such as a student, spouse, or parent. A contributor provides their own information and signs using their own StudentAid.gov account.

Cost of Attendance (COA) — An estimate of the total cost of attending college for an academic year. It can include tuition, fees, housing, food, books, transportation, and personal expenses. COA is used to determine aid eligibility; it is not necessarily the amount WKU will bill you.

Direct Costs — Expenses that may be billed directly by WKU, such as tuition and fees and, when applicable, university housing and meal plans.

Disbursement — When financial aid funds are released and applied to your student account. Aid must meet all requirements before it can disburse.

Enrollment Status — How many credit hours you are taking, such as full-time, three-quarter-time, half-time, or less than half-time. Enrollment can affect the amount and types of aid you are eligible to receive.

Entrance Counseling — A federal requirement for many first-time federal student loan borrowers. It explains how loans work, repayment responsibilities, and your rights as a borrower.

FAFSA — The Free Application for Federal Student Aid. WKU uses FAFSA information to determine eligibility for federal aid and some state or other aid. A new FAFSA is required for each academic year you want financial aid.

FAFSA Submission Summary — The document available after your FAFSA is processed. It summarizes FAFSA information, shows your Student Aid Index (SAI), and identifies possible next steps. It is not your WKU financial aid offer.

Financial Aid — Money or resources that can help you pay for college. Financial aid may include grants, scholarships, loans, and work-study.

Financial Need — A calculation used to determine eligibility for certain types of financial aid. It is based on factors that include your Cost of Attendance and Student Aid Index.

FSA ID / StudentAid.gov Account — Your personal StudentAid.gov login used to complete and sign federal student aid documents. Do not share your login information with anyone.

Grant — Money that generally does not have to be repaid. Grants are commonly based on financial need. Examples include the Federal Pell Grant and Kentucky College Access Program (CAP) Grant.

Indirect Costs — Estimated college-related expenses that may not appear on your WKU bill, such as books (if not using the Big Red Backpack Program), supplies, transportation, and some personal expenses.

Interest — The cost of borrowing money. Interest can increase the total amount you repay on a loan.

KEES — The Kentucky Educational Excellence Scholarship, a state scholarship program for eligible Kentucky students. Eligibility and continued award amounts depend on state requirements.

KHEAA — The Kentucky Higher Education Assistance Authority. KHEAA administers state student aid such as the Kentucky Educational Excellence Scholarship (KEES) program, the College Access Program (CAP) Grant, and other scholarship and grant programs.

Loan — Money you borrow to help pay for college. Loans must be repaid, usually with interest. A loan can appear on a financial aid offer, but it is not free money.

Master Promissory Note (MPN) — A legal agreement you sign when borrowing a federal student loan. By signing it, you promise to repay the loan and agree to the loan terms.

Need-Based Aid — Financial aid awarded based partly on financial need. Grants, work-study, and subsidized loans are common examples of aid that may be need-based.

Net Price — Your estimated Cost of Attendance minus grants and scholarships. It can help you compare what college may cost after gift aid.

Parent PLUS Loan — A federal loan that an eligible parent may borrow to help pay educational expenses for a dependent undergraduate student. The parent borrower is responsible for repayment.

Pell Grant — A federal need-based grant for eligible undergraduate students. Pell Grant funds generally do not have to be repaid.

Private Loan — A non-federal education loan offered by a bank, credit union, or other lender. Terms, interest rates, and credit requirements vary by lender.

Refund / Residual — Money remaining after a student’s WKU bill has been completely paid. Residuals are disbursed to students through BankMobile Disbursements.

Satisfactory Academic Progress (SAP) — Academic standards you must meet to remain eligible for many types of financial aid. WKU reviews both your grades and your progress toward completing your degree.

Scholarship — Money awarded to help pay educational expenses that generally does not have to be repaid. Scholarships may come from WKU, the College Heights Foundation, the state, private organizations, or other sources. Scholarships are usually based upon academic performance or other non-need-based qualifications.

Student Aid Index (SAI) — A number calculated from FAFSA information that schools use when determining financial aid eligibility. Your SAI is not your bill, the amount of aid you will receive, or the amount your family is required to pay.

Student Bill — The actual charges posted to your WKU student account. Your bill and your Cost of Attendance are not the same thing.

Subsidized Loan — A federal student loan for eligible undergraduate students with financial need. The federal government pays the interest during certain qualifying periods.

Third-Party Scholarship — A scholarship provided by an organization outside WKU, such as a business, church, foundation, civic group, or community organization.

TopDollar — WKU’s scholarship application portal for many scholarship opportunities offered through the university, the College Heights Foundation, academic departments, and other sources.

Unmet Need — The portion of your calculated financial need that is not covered by the financial aid you receive.

Unsubsidized Loan — A federal student loan that is not based on financial need. Interest begins accruing after the loan is disbursed, including while you are enrolled.

Verification — A review process used to confirm information reported on the FAFSA. If selected, you must provide requested information before federal aid can be finalized and disbursed.

Waiver / Tuition Waiver — A benefit that reduces or removes certain tuition or fee charges for eligible students. A waiver is different from cash paid directly to a student.

Work-Study — A student employment program that allows eligible students to earn money through a job. Students must obtain a position and are paid for hours worked; work-study funds are not automatically credited toward the WKU bill.