Financial aid is money given or lent to help pay for something important. When a student receives a grant or loan to help pay for their college education, that's financial aid.
In the U.S., student financial aid often comes from colleges and universities, as well as from state and federal governments. Students from low- and middle-income families often receive financial aid to help pay for tuition and other expenses. Some financial aid is in the form of grants or scholarships — money that doesn't have to be repaid — and some is in the form of loans, which will eventually need to be paid back with interest. The term financial aid is also used for any money given to help a person or a cause.