What type of financial aid does not need to be repaid?

The correct choice is a grant, as this type of financial aid is typically awarded to students based on financial need or academic merit and does not require repayment. Grants are designed to help cover the costs of education such as tuition, fees, and sometimes living expenses. This distinguishes them from loans, which must be repaid with interest, and credit, which refers to borrowing or the ability to borrow money, requiring repayment as well. Additionally, a mortgage is a specific type of loan used to purchase real estate and also requires repayment over time. Therefore, grants serve as a valuable resource for students seeking financial assistance without the burden of future repayment.