10
QuizMultiple Choice

Planning and Paying for College — Quiz

Question 10 • Personal Finance

How are grants different from loans?

Answer
A
loans are free money
B
loans are tax-free
C
grants must be repaid
D
grants usually do not require repayment

Explanation

Grants are financial aid that usually does not have to be paid back. Loans are borrowed money and generally must be repaid, often with interest. So the correct choice is “grants usually do not require repayment.”

AI-written and checked against the verified answer.