This week, all the major news outlets are reporting on a complaint filed in federal district court in Illinois against 16 elite universities. The complaint accuses these universities of a price fixing cartel designed to reduce the amount of financial aid provided to admitted students.
This is making headlines as the elite universities named in the complaint tout themselves as need-blind institutions. As I scoured each article trying to put the pieces together, I was reminded of how confusing financial aid and the terminology can be for families. While it takes an antitrust expert to understand the legal argument against the defendants, the financial aid terminology being thrown around should be clear.
Here are the terms every family should know:
RELATED READING: 3 Financial Aid Questions Parents Need to Ask