Question

James receives a grant for college and decides to take out a loan for the balance of his total cost. Which situation applies to James? Select the best answer from the choices provided.
a. James will not have to pay the grants back.
b. James will have to pay the grants back.
c. James will not have to pay the loans back if he lives on campus.
d. James will have to pay the loans back if he goes to a private college.

Answer 1

A grant is vaguely similar to a gift- it's a donation given with a specific purpose, for example a waver of study fees. So generally, people don't need to pay their grants back - the correct answer is a.

However, he will have to pay back the full amount of the loan.