You might have been thinking that Scholarships are the same as Grants. But examining the two terms closely, you’ll discover that there is a clear difference. Both are a student(s) financial aid that helps to pay for the necessities associated with higher education such as tuition, room, board, and textbooks. Though people sometimes confuse the terms or use them interchangeably, each has their own eligibility requirements and guidelines which makes them differ. One clear similarity is that grants and scholarships don’t need to be repaid, unlike college loans.
Contents
What are the Scholarships?
A scholarship is an award of financial aid for a student to further his/her education. Scholarships are awarded based on various criteria, which usually reflect the values and purposes of the donor or founder of the award. Scholarship money is not required to be repaid.
Types of Scholarships
Below are the most common scholarships;
- Merit-based Scholarships.
- Need-based Scholarships.
- Student-specific Scholarships.
- Career-specific Scholarships.
- College-specific Scholarships.
- Brand Scholarships.
- Creative Contest Scholarships.
- Athletic Scholarships.
What are Grants?
Grants are non-repayable funds or products disbursed or given by one party (grantmakers), often a government department, corporation, foundation or trust, to a recipient, often (but not always) a nonprofit entity, educational institution, business or an individual. In order to receive a grant, some form of “Grant Writing” often referred to as either a proposal or an application is required. Most grants are made to fund a specific project and require some level of compliance and reporting. Grants tend to be need-based and are available to students based on criteria such as family income. Federal and state government are the primary sources of grants, The Pell Grant is a well-known federal grant program. State-funded grants ordinarily go to students pursuing an education in that state.
Difference Between Scholarships and Grants
Both scholarships and grants are forms of financial aid, which is money for college that does not need to be earned or repaid. Although people often use the terms scholarships and grants as synonyms or interchangeably, there are important differences;
- Grants, like the Federal Pell Grant, are usually awarded based on the student’s demonstrated financial need. Such need-based grants are usually awarded by the federal government, state governments, and colleges and universities.
- Scholarships are usually awarded based on merit, such as academic, athletic, need-based, creative contest, artistic talent etc. But the predominant selection criteria are merit-based. Private scholarships are usually awarded by private foundations, community foundations, philanthropists, unions, non-profit organizations, and for-profit corporations.
