Need-based financial aid is like a financial superhero swooping in to save the day for students who might not have the means to pay for college on their own. It's based on a student's Expected Family Contribution (EFC), which is calculated by the FAFSA. This calculation takes into account factors like income, savings, and the number of dependents in the household. Essentially, it's designed to help those who demonstrate financial need by providing them with grants, scholarships, or work-study opportunities that don't need to be paid back. It's a great way to make higher education more accessible to everyone, regardless of their financial background.