Understanding the Key Differences Between Educational Grants and Scholarships

Understanding Grants and Scholarships for Education

Both grants and scholarships are forms of financial aid that do not require repayment. Unlike loans or jobs, gift aid is awarded based on either financial need or merit, making higher education more accessible. Although often used interchangeably, grants and scholarships serve different purposes. Grants primarily assist students with financial hardship, while scholarships reward academic achievement or special talents. Recognizing these distinctions can help students choose the most suitable financial support options for their educational journey.

What is a Grant?

A grant is financial assistance provided by entities such as governments, foundations, or organizations, typically disbursed to individuals, colleges, or nonprofits to support specific projects or needs.

What is a Scholarship?

A scholarship is a sum of money awarded to students based on academic performance, talent, or financial need to help fund their higher education.

These aid types are awarded under various criteria reflecting the intentions of the donor or organization.

Recipients

What Grants Cover

Funding for colleges and universities to support research and academic programs

Training for veterans to transition into new roles

Support for nonprofits in areas like community development, arts, youth services, healthcare, and housing

Scholarship Types

Scholarships are often categorized based on merit, need, or specific fields. While grants are generally not classified, scholarships can be academic, financial, or targeted toward certain careers.

How to Secure Grants and Scholarships?

To apply, students should complete financial aid forms like the FAFSA or CSS Profile. External scholarships may require separate applications.

Complete the FAFSA to qualify for federal aid, which also benefits many colleges and states.

Check your college’s financial aid requirements, often involving forms like the CSS Profile or institution-specific applications. Contact the financial aid office for deadlines and procedures.

Search for external scholarships through resources like College Board’s Scholarship Search or guidance counselors. Submit application forms with your financial aid papers.

Eligibility Criteria for Grants and Scholarships

FAFSA eligibility generally determines grant qualification, mainly for undergraduates and some graduate students in specific programs. Financial need and GPA requirements often apply. Scholarships usually recognize merit, requiring high academic performance, special talents, or specific criteria, with some assessing financial need.

Common scholarship eligibility aspects include:

No-Requirement Scholarships— Simple application forms without additional criteria, open to many applicants.

Academic-Based Scholarships— Require strong grades or test scores.

Financial Need Scholarships— Target students from economically weaker backgrounds, requiring income proof.

Extracurricular Scholarships— Awarded for participation in specific activities or organizations, often needing recommendation letters.

Other Requirements— May include essays, interviews, or unique criteria such as occupation or citizenship status.

Advantages and Uses of Grants and Scholarships

Reduce financial barriers to education

Offer mentorship and network opportunities

Eliminate the need to work part-time for financial support

Enhance your resume and chances for competitive scholarships

Allow access to prestigious, often expensive colleges

Understanding the differences between grants and scholarships and their application processes helps students choose suitable financial aid options, making higher education more attainable.