EverFi Financial Literacy for High School Practice Test 2026 - Free Financial Literacy Practice Questions and Study Guide

The term that refers to a scholarship awarded based on financial need is "Need-based Scholarship." This type of scholarship is specifically designed to assist students who demonstrate a significant financial requirement to support their education. Unlike merit-based scholarships, which are awarded based on academic achievement or other talents, need-based scholarships take into account the financial circumstances of the student and their family. This helps make higher education more accessible for students who may not be able to afford it otherwise.

In the context of financial assistance, need-based scholarships are essential as they aim to alleviate the financial burden and allow students from various backgrounds to pursue their academic goals without the stress of financial limitations.