What is a type of financial aid where money is loaned for the purpose of paying for a student's education and must be repaid?

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Multiple Choice

What is a type of financial aid where money is loaned for the purpose of paying for a student's education and must be repaid?

Explanation:
Understanding how different forms of financial aid work helps you plan for college costs. A loan is money borrowed specifically to cover education expenses, and it must be repaid later, usually with interest. This is what sets it apart from a scholarship, which is money given that doesn’t have to be paid back, and from work-study, which is earned income from a part‑time job rather than borrowed funds. Financial aid is the broad category that includes loans, scholarships, and work-study, but the option that requires repayment is the loan.

Understanding how different forms of financial aid work helps you plan for college costs. A loan is money borrowed specifically to cover education expenses, and it must be repaid later, usually with interest. This is what sets it apart from a scholarship, which is money given that doesn’t have to be paid back, and from work-study, which is earned income from a part‑time job rather than borrowed funds. Financial aid is the broad category that includes loans, scholarships, and work-study, but the option that requires repayment is the loan.

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