What is student financial aid?

Student financial aid is money that is provided to help students and their families pay for college expenses. College can be expensive and many students and their families cannot afford to pay for tuition and fees, books and supplies, and the living expenses associated with attending college. Federal and state governments, colleges and universities and various organizations attempt to ensure that college is affordable for all students, by providing student financial aid to help meet the college costs for students who do not have sufficient resources. The federal government provides 75 percent of all financial aid awarded to students across the country. Nationally, states provide 6 percent of all aid, and institutions provide 19 percent. Of all federal financial aid, three quarters come in the form of student loans.