I spend a lot of time writing about how to help students get into colleges, but it also makes sense to learn about how to pay for that college education.

Each year around this time I focus on financial aid issues because the FAFSA becomes available on Jan. 1. The FAFSA is the Free Application for Federal Student Aid. Everyone, repeat, everyone should complete this form. It’s simple and you don’t need to hire anyone to fill it out for you.

I suggest reviewing the following glossary of terms before you complete the FAFSA. Much of this is taken directly from "The Complete Idiot’s Guide to Financial Aid for College" (www.idiotsguides.com). Here are the A’s through E’s. F-Z will be in next week’s column.

Accrued interest: Interest on a loan that is not paid during the period of the loan but accumulates and is paid in installments at a later time.

Adjusted gross income (AGI): Taxable income after all allowable tax deductions are made.

Aid package/Award letter: A combination of financial aid (scholarships, grants, loans, and/or work-study) determined by the financial aid office of a college.

Alternative loan program (ALP): Loans used to supplement the funds students need to attend college.

Asset protection: A sum subtracted from a family’s total assets when determining the expected family contribution to college costs.

Base year: For need-analysis purposes, the base year is the calendar year preceding the award year. (Award year is July 1-June 30.)

Co-borrower: A person who signs a promissory note in addition to the borrower and is responsible for the obligation if the borrower does not pay.

College Aid Sources for Higher Education: A free financial aid service offered by Sallie Mae.

College Scholarship Service (CSS): An arm of the College Board and one of the agencies that processes financial aid information and applications.

Deferment of a loan: A period of postponement during which the repayment of loan principal is suspended because the borrower meets one or more deferment requirements.

Expected family contribution (EFC): The amount a family is expected to contribute to a student’s education based on family earning, net assets, savings, size of family and number of siblings in college.

Resources:

FAFSA – www.fafsa.ed .gov .

EFC calculator – www.finaid.org/calculators/ finaidestimate.phtml .

FAFSA forecaster – www.fafsa4caster.ed.gov. Filling this out allows you to begin exploring financial aid opportunities such as grants and scholarships before a student’s senior year in high school.

After completing these forms, you can transition to the FAFSA form, and it will automatically populate with your information.

Bierer is an independent college consultant in Charlotte. Send questions to: lee@collegeadmissionsstrategies.com                                 www.collegeadmissionsstrategies.com