Web Definition: Student Aid
In the United States, financial aid refers to funding intended to help students pay tuition or other costs, such as room & board, for education at a college, university, or private school. General governmental funding for public education is not called financial aid, which refers to awards to specific individual students. A scholarship is sometimes used as a synonym for a financial aid award. merit-based or need-based. Merit-based financial aid includes both academic & athletic scholarships. Need-based financial aid is awarded on the basis of the financial need of the student. To receive federal need-based financial aid, the student must file a FAFSA application. The FAFSA uses a calculation taking into account income & assets to determine a students Expected Family Contribution. Colleges use the EFC to decide what types of financial aid a student is eligible to receive. Students must complete the FAFSA each year in order to be considered for financial aid.
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