Question

Which statement best explains federal grants that cover the costs of an education?

They require the use of savings.
They need to be repaid with interest.
They are based mostly on financial need.
They require borrowing money from a bank.

Answer 1

They are based mostly on financial need.

Federal grants (like Pell Grants) are awarded primarily on the basis of a student's financial need and generally do not have to be repaid.