Which of the following is an example of financial aid that does not need to be repaid and is usually based on demonstrated need?

Grants are a form of financial aid awarded to students based on demonstrated financial need, and they do not need to be repaid. This characteristic makes them particularly appealing for students seeking assistance in managing the costs associated with higher education. Grants are often funded by federal or state governments, as well as by colleges and private organizations, and can help cover tuition, fees, and other educational expenses.

In contrast, loans, while they may be based on financial need, must be repaid with interest over time, making them a financial obligation for the borrower. Work-study programs allow students to earn money through part-time jobs, but those earnings must be actively generated by working, which differs from receiving a grant. Credit typically refers to borrowing money or a limit extended to consumers, which again implies repayment obligations. Therefore, the nature of grants as non-repayable aid makes them a vital resource for students requiring financial assistance.