The term 'BASIS FOR FINANCIAL AID' can be broken down into two parts: the word 'NEED' (4 letters) and the phrase 'financial aid'. The word 'NEED' is used to describe a situation in which something is required or necessary. Financial aid is money given to individuals or organizations to help pay for educational expenses. Therefore, the term 'BASIS FOR FINANCIAL AID' can be interpreted as the NEED for financial assistance in order to cover educational costs.