Financial aide refers to funding intended to help students pay tuition or other costs, such as room and board, for education at a college, university, or private school. General governmental funding for public education is not called financial aide, which refers to awards to specific individual students. .

Financial aide may be classified into two types based on the criteria through which the financial aide is awarded: merit-based or need-based. Merit-based financial aid includes both academic and athletic scholar ship programs. Need-based financial aide is awarded on the basis of the financial need of the student.

In the United States, to receive federal need-based financial aide, the student must file a FAFSA application. The FAFSA uses a calculation taking into account income and assets to determine a student's Expected Family Contribution (EFC). Colleges use the EFC to decide what types of financial aide a student is eligible to receive. Students must complete the FAFSA each year in order to be considered for financial aide.

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