What characteristic distinguishes a grant from a loan in AER assistance?

A grant is characterized by the fact that it does not require repayment, which is the fundamental distinction that sets it apart from a loan. In the context of AER (Assistance for Educational Resources) assistance, grants are typically provided to support specific projects or needs without the expectation that the recipient will pay the money back. This makes grants particularly valuable for individuals or organizations that may not have the financial capacity to repay funds.

In contrast, loans are financial instruments that borrowers must repay within a specified timeframe, often with interest. This requirement for repayment is a key aspect of loans and influences how recipients plan their finances and manage the funds received.

Grants commonly serve purposes such as fostering education, research, or community development, allowing recipients to focus on their endeavors without the pressure of financial return. The understanding that grants are non-repayable encourages powerfully impactful initiatives, as beneficiaries can fully utilize the resources for their intended purposes.