Which type of financial aid does not need to be repaid after college?

Grants are a form of financial aid that does not require repayment after college, which distinguishes them from loans and credit cards that involve borrowing money with the expectation that it will be repaid, often with interest. Grants are typically awarded based on financial need, academic merit, or specific criteria set by the granting institution or government agency, which is why they do not create a debt burden for the student upon graduation.

Scholarships are also a type of financial aid that does not require repayment, but in this case, the correct answer focuses specifically on grants. Both grants and scholarships may come from a variety of sources, including the government, colleges, or private organizations, but grants are often associated with need-based aid programs. Therefore, while scholarships could also be considered correct in a broader context, the reference to grants highlights a specific category of financial aid that consistently does not need to be repaid.