What type of financial aid is usually offered due to financial need?

Grants are a type of financial aid that is typically awarded based on financial need. They are considered "gift aid," meaning that they do not have to be repaid, which significantly eases the financial burden for students who may struggle to afford their education. Grants can come from various sources, including the federal government, state governments, and educational institutions. The allocation of grants relies on demonstrating financial need typically assessed through information provided on forms like the FAFSA (Free Application for Federal Student Aid).

In contrast to grants, loans require repayment after a certain period, which introduces additional financial responsibility for the student. Scholarships, while they can also be need-based, are often awarded based on merit, such as academic performance or extracurricular achievements. Work-study programs allow students to work part-time jobs to help pay for their education, but they are not purely a form of grant-based aid either. Thus, grants are the most relevant option specifically associated with financial need.