What type of loans may have their repayment waived under certain conditions?

Forgivable loans are a specific type of financial assistance where the lender agrees to waive the repayment of the loan under certain conditions or agreements. This means that if the borrower meets specified criteria, such as maintaining employment in a particular field, or achieving certain performance metrics, they may not need to repay the borrowed funds. This type of loan is often associated with incentives for education, public service, or development projects aimed at helping individuals or groups improve their situations without the burden of debt.

In contrast, firm commitments refer to agreements to lend money where repayment is typically expected, and financial liabilities represent obligations to repay borrowed amounts without any forgiveness attached. Forecast transactions involve anticipated future events and are not directly related to loans or their repayment conditions. Thus, forgivable loans stand out as the correct answer due to their unique feature of potential debt forgiveness based on the borrower's actions or achievements.