Home › Student Life & Schooling › College Admissions & Applications › Financial Aid

Financial Aid

fy-NAN-shul AYD /faɪˈnænʃəl eɪd/

noun phraseB2

formalacademic

Money provided to students to help them pay for college or career school. It can come from federal, state, school, or private sources and includes grants, scholarships, loans, and work-study.

A broad term encompassing various forms of financial assistance, both repayable (loans) and non-repayable (grants, scholarships). Often need-based.

The story behind the word. 'Financial' comes from the Old French finance, meaning 'payment, settlement of a debt,' which ultimately relates to Latin finis ('end, limit'), as in 'finishing' a debt. 'Aid' comes from Old French aider, meaning 'to help.' So, 'financial aid' literally means 'help with money,' specifically structured to assist students in completing their education by settling costs.

Word relationships

Student funding: a more general term for money provided to students
Tuition assistance: specifically for tuition costs

Self-funding: paying for education entirely with one's own money
Debt: money owed

Commonly confused with

Loan: 'Financial aid' is the umbrella term; a 'loan' is a specific type of financial aid that must be repaid.

Word family

Finance (noun/verb): the management of large amounts of money/to provide funding
Financial (adjective): relating to money or finance

Collocations

federal financial aid
state financial aid
financial aid package
apply for financial aid
financial aid office
need-based financial aid

Example sentences

"Many students rely on financial aid to cover the rising costs of tuition and living expenses." General reliance on aid.
"To qualify for federal financial aid, students must complete the FAFSA form annually." Requirement for federal aid.
"The university offers a generous financial aid package, making it accessible to a wider range of students." Institutional offering.

Memory hook

FINANCIAL AID helps you FINISH your education without FAILING due to costs. Finish with aid.

When not to use

Don't use 'financial aid' to refer to general financial assistance outside of an educational context (e.g., 'financial aid for a business' would be 'funding' or 'investment').

Fun facts

The Higher Education Act of 1965 established many of the federal financial aid programs still in use today in the US.
The Free Application for Federal Student Aid (FAFSA) is the primary form for determining eligibility for most federal and state financial aid.

Related words

Scholarship, Acceptance, Prospective

Explore more words

scholarship, bursary, tuition, assistance, Grant, repay