What type of financial aid does not require repayment?

A grant is a type of financial aid that does not require repayment, making it a valuable resource for students and individuals seeking financial assistance for education or other purposes. Grants are typically awarded based on specific criteria, which may include financial need, academic performance, or particular demographics such as being part of a minority group or pursuing a career in a certain field.

Unlike loans, which must be repaid with interest over time, grants provide funding that the recipient does not need to pay back, thus easing the financial burden. Scholarships also fall into a similar category in that they provide funds that do not require repayment; however, they are generally awarded based on merit, such as academic achievements or talents. Both grants and scholarships are critical for making education more accessible, particularly for students from low-income backgrounds.

The other financial aid options, such as loans and mortgages, require repayment and often come with interested costs, which differentiates them significantly from grants and scholarships. Loans are borrowed amounts that must be returned, typically over a fixed period with additional interest; mortgages are specific types of loans for purchasing property. Therefore, while grants and scholarships are forms of financial support that do not need to be repaid, the critical aspect of grants is their focus on supporting individuals with financial