Financial Aid Law and Legal Definition

Financial aid is a term that includes all types of financial assistance, loans, and work-study related programs offered to the students to help them in paying fees, and living expenses. A financial aid package includes a combination of loans, grants, scholarships and work-study. The U.S. government provides student loans that are to be paid back with interest after graduation. Scholarships and grants awarded to eligible students need not be paid back. Scholarships and grants are allotted on merit basis or need basis. Financial aids can come from the federal or state government, a high school, college or university, a business, an individual, or even a nonprofit organization. Grants, loans, assistantships, scholarships, fellowships, tuition waivers, tuition discounts, veteran's benefits, employer aid, and tuition reimbursement provided to students to meet expenses comes under financial aid.