Grants and scholarships are both types of financial aid that do not need to be repaid, but they differ mainly in terms of eligibility and basis for awarding. Grants are typically need-based, meaning they are awarded based on the student's or family's financial situation. They are often provided by federal or state governments and schools. Qualifying for a grant usually requires demonstrating financial need, often through the FAFSA form. Grants may also have some ongoing eligibility requirements but do not depend on academic merit.
Scholarships, on the other hand, are usually merit-based. They are awarded based on achievements such as academic excellence, athletic ability, leadership, or other talents and qualities. Scholarships come from a wide range of sources including schools, private organizations, businesses, and nonprofits. They may require applications, essays, or interviews and sometimes maintaining a certain GPA to keep eligibility. Scholarships can also be awarded based on financial need but are generally broader in criteria compared to grants.
In summary, the main difference is:
- Grants: Need-based financial aid primarily from government sources.
- Scholarships: Merit-based financial aid from various sources based on achievements or traits.
Both are free money that helps pay for education without needing repayment.
