Answer Explanation

[PASSAGE] "Grants are typically ‘need-based,’ meaning they are given to students who show financial need... Scholarships, on the other hand, are ‘merit-based.’ This means they are awarded for something you’ve achieved..." The professor explains that grants are based on a student's financial need, while scholarships are awarded for achievements or merit. [WHY CORRECT] Option 2 is correct because the professor directly states, "Grants are typically ‘need-based’... Scholarships, on the other hand, are ‘merit-based.’" This explicitly defines the key difference as being between need and merit. [TRAPS] Option 1 (Grants are for science majors, while scholarships are for arts majors) is wrong because the professor does not mention specific academic fields for either. Option 3 (Grants do not need to be repaid, but scholarships do) is wrong because the professor groups both grants and scholarships under "gift aid," which "is money you don't have to pay back." [TIP] For detail questions, listen carefully for explicit comparisons, definitions, or contrasting words (e.g., "however," "on the other hand," "unlike") which often introduce key distinguishing characteristics.

Why the Other Options Are Incorrect

• Option A (“Grants are for science majors, while scholarships are for arts majors.”) confuses two separate points from the text.
• Option C (“Grants do not need to be repaid, but scholarships do.”) swaps the cause and effect described in the passage.
• Option D (“Grants are more valuable than scholarships.”) attaches the right fact to the wrong subject.

Key Language in Context

Pay attention to the precise wording used to discuss Financial Aid. In TOEFL detail questions, transitions and qualifiers carry the meaning that separates the correct answer from close distractors.

Skill Takeaway

Scan for the keyword from the question, then read one sentence around it carefully.