Financial aid refers to a variety of funding options available to students to help offset the cost of higher education. This can include scholarships, grants, loans, and work-study programs. Financial aid is typically need-based, meaning it is awarded based on a student's financial situation and ability to pay for college. It is designed to make higher education more accessible to students from diverse backgrounds and ensure that financial constraints do not prevent individuals from pursuing their educational goals. Financial aid programs are administered by colleges and universities as well as government agencies at the federal, state, and local levels.