The world’s #1 Guide to Scholarships and Financial Aid

2.2. What is Financial Aid?

Financial aid is a broader term that encompasses any funding provided to help students cover educational expenses. This includes tuition, fees, room and board, books, and sometimes even living costs. While scholarships are a type of financial aid, the term also covers grants, loans, and work-study programs. Financial aid can come from federal or state governments, educational institutions, or private lenders. The goal of financial aid is to ensure that cost doesn’t prevent capable students from pursuing education. For many, it’s a lifeline that makes college possible. However, not all financial aid is “free”—some forms, like loans, come with repayment obligations, while others, like grants and scholarships, do not.