Just to further clarify, Most PhD students do not get paid with government-funded scholarships (only a select lucky few). Again the majority do not get paid via university-sponsored scholarships. MOST PhD students fund their study by working little hours as an assistant to a senior academic at the university and or medial jobs outside their field of study to support themselves. One must also remember the hours they do work is very little...as most of their time is taken-up by their PhD research. So yes, most do it for free (as they have no other choice) and don't get paid...It's not about the money, it's about bettering one's knowledge and skill set.
As for the second part, yes two degrees is generally required. One may obtain an undergraduate bachelor degree and if their GPA is high enough they may then proceed (apply) to study for theirs (Hon); which in this case an undergraduate bachelor degree with a high GPA is first required.
How do know I this... I am studying a PhD. Straight from the horse's mouth champ
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