Which type of aid is usually not required to be repaid?

Study for the NASFAA Student Eligibility Test. Use flashcards and multiple choice questions, with explanations and tips for better understanding. Prepare effectively for your exam!

Grants are a type of financial aid that typically does not require repayment. These funds are awarded based on financial need, merit, or other criteria set by the granting agency and are intended to support a student's education, covering expenses such as tuition, fees, and books. Once a grant is received and used for its intended purpose, the student is not obligated to pay it back, making it a valuable resource for students seeking financial assistance.

In contrast, federal loans and private loans are borrowed funds that must be repaid, often with interest, over a specific time frame. Work-study programs provide students with part-time employment to help pay for their educational expenses, but they also earn their wages through work, which is different from receiving funds that don't require repayment. Thus, grants stand out as a form of aid that students can use without the burden of future repayment.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy