What type of financial reward is based on student merit?

The type of financial reward based on student merit is scholarships. Scholarships are typically awarded to students who demonstrate exceptional academic performance, talent in a specific area, or achievement in extracurricular activities. Unlike other forms of financial aid, scholarships do not require repayment, making them an attractive option for students seeking to fund their education. They can come from various sources, including schools, private organizations, and government agencies, and are often competitive, requiring students to meet certain criteria to qualify.

In contrast, grants are usually based on financial need rather than merit, and loans require repayment regardless of the student's financial situation or academic standing. Work-study funds are awarded based on financial need and entail work commitments, rather than purely merit-based achievements.