Scholarships vs. Grants: How Do They Differ

Scholarships and grants are both types of financial assistance given to help students tackle their college expenses. Neither form of financial aid requires repayment.

However, these two types of financial aid options often have different eligibility requirements. Below, we break down what high school and college students need to know about the differences between college scholarships and grants.

What Are Scholarships?

Scholarships are a type of financial aid that doesn't need to be repaid. They are given as a gift to help students pay for school.

Scholarships can be offered by a range of organizations, including the government, non-profit organizations, businesses, and even the college or university. The amount offered can vary wildly.

There's typically some sort of criteria for applying for a scholarship, as they are usually merit-based. Scholarships are often given for things like:

• academic achievement
• artistic talent
• athletics
• life experiences

There are also many scholarships awarded to students in specific demographics. For example, you can find scholarships for the following:

• single mothers
• children of immigrants
• adult students
• HBCU applicants
• children of veterans
• women in STEM

What Are Grants?

Grants are another type of financial aid that does not need to be repaid. Grant eligibility is typically need-based rather than merit-based.

Federal Pell Grants are one of the most common types of grants a student can receive. Pell Grants are offered by the federal government based on financial need. In fact, 34% of all students receive the Pell Grant.

Grants are often offered by the government or by colleges and universities, but can also be offered by private organizations. The amount offered usually varies based on financial need.

It should be noted that there are a handful of cases in which you may be obligated to repay a grant. These include:

• withdrawing from your program
• going from a full-time student to a part-time student
• receiving enough scholarships and grants from other sources that you reduced your need for federal aid

If you're concerned that you may be in a situation in which you must repay a grant, talk to your college advisor or your college's financial aid office.

What Are the Differences Between Scholarships and Grants?

Scholarships and grants are more alike than they are different. They're financial aid gifts, they can be offered by a number of sources, and be offered in various amounts.

The biggest difference between the two is why they're awarded. Grants, generally, are offered purely based on financial need, meaning your income must fall within a certain threshold.

Scholarships, meanwhile, can be offered based on financial need, but can also be offered for any number of other reasons. These include academic success, athletic or artistic talent, being part of a certain demographic, or even winning a contest.

Should I Pursue a Scholarship or Grant?

If you need funding for your higher education and want to avoid taking out student loans as much as possible, the best option is to apply for both scholarships and grants. There is no limit to how much financial aid you can apply for, and its free money.

You can't take on more in scholarships and grants than the cost of your tuition, but feel free to apply for whatever you think you may qualify for. The more scholarships and grants you earn, the less your student loans will be.

How Do I Find Scholarships and Grants?

To find scholarships and grants, the first thing you need to do is fill out your Free Application for Federal Student Aid (FAFSA). This application looks at your family income and financial situation to determine what financial aid you may qualify for.

By filling out your FAFSA, you'll automatically be considered for federal student aid, like the Pell Grant. However, this is often not enough to cover your total tuition cost, so you'll want to keep looking.

Check with your college or university to find out what types of institutional grants or scholarships are available. You can also use a scholarship search website like:

• Careeronestop.org
• Collegeboard.org
• Fastweb.com
• Scholarshipowl.com
• Scholarships.com

These websites typically allow you to filter through merit-based scholarships by things like your GPA and field of study to narrow down eligibility criteria. There are often a huge number of providers and grant and scholarship opportunities available.

The application process varies between scholarships and grants. You may be required to submit an essay, portfolio, or letters of recommendation depending on what type of scholarship or grant you're applying for.