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The government uses grants and cooperative agreements as a means of assisting researchers in developing research for the public good, whereas it uses contracts as a means of procuring a service for the benefit of the government. Grants are much more flexible than contracts.
Grants are different from loans in that you don't have to pay them back. Grants are sometimes offered by the government to encourage people to go on certain courses, or to help people in deprived demographics. Many charities offer grants too.it is like a promortion from others. Grants are different from loans in that you don't have to pay them back.