What is a financial award that does not require repayment called?

A financial award that does not require repayment is known as a grant. Grants are typically provided by government entities, educational institutions, or organizations to help individuals cover costs associated with education or specific projects, without the obligation to repay the funds. This feature makes grants particularly valuable for students or individuals in need of financial assistance.

Scholarships, while also a form of aid that does not require repayment, are often based on academic merit or other specific criteria. While scholarships are similar to grants in that they do not need to be repaid, the distinction usually lies in their purpose and eligibility requirements.

Loans, on the other hand, are borrowed funds that must be repaid with interest over time, making them distinctly different from grants. Endowments refer to funds that are invested to generate income for a specific purpose, often in support of educational institutions or non-profits, but they are not directly monetary awards given to individuals without repayment requirements.

Therefore, the definition and structure of grants set them apart as the correct answer to identifying a financial award that does not require repayment.