Which term describes money that does not need to be repaid?

• A. Financial Aid
• B. Loan
• C. Work Study
• D. Scholarship

Answer: (D)

The main idea here is distinguishing funds you don’t have to repay from those you do. A scholarship precisely fits money that doesn’t need to be repaid: it’s awarded to a student based on merit, need, or a specific program, and it reduces the cost of attendance without requiring repayment (as long as you meet any stated conditions, like maintaining a certain GPA).

Financial aid is a broad umbrella that includes scholarships but also loans, which must be repaid with interest. Work-study provides earnings from a campus job; while you don’t repay those wages, they come from work and aren’t the same as a non-repayable award. So the choice that best matches “money that does not need to be repaid” is the scholarship.