What is the difference between a grant and a loan?

In terms of financial aid, a grant and a loan have significant differences. A grant is a form of financial aid that is typically awarded based on financial need or academic merit, and unlike a loan, it does not need to be repaid. Grants are essentially free money provided by the government, institutions, or private organizations to help students cover educational expenses. On the other hand, a loan is a borrowed amount that must be repaid with interest. Loans are offered by financial institutions or the government and need to be paid back over a specified period. Loans can provide students with much-needed funds to cover tuition, books, and living expenses, but they come with the responsibility of repayment. Understanding these distinctions is crucial when considering financial aid options to pursue higher education.