The cost of higher education is very high and many students face problems in paying their college fees. Education is an expensive affair and college education is becoming costlier day by day. Every student is not capable of bearing all the educational expenses and in this situation, they are looking for scholarships and grants. To help the students various organizations and institutions offer different scholarships and grants. The grants and scholarships are almost similar but also different due to their aims and objectives. So, to help you understand the difference between scholarships and grants we will discuss scholarships, grants, what is the difference between grants and scholarships, sources of grants and scholarships, how you can get grants and scholarships, and the reasons for the application.
What are Grants?
Grants are the funds distributed by one organization at a time and the best part is there is no specific category for grants. It helps students in getting grants with ease. Grants are distributed by government departments, foundations or trusts, and corporations to non-profit organizations (oftenly), colleges and universities, businesses, and individuals. Grants are mostly awarded based on the family situation.
What are Scholarships?
Scholarships are known as awards. These awards are in the form of money which means students get financial aid for paying their education expenses. Scholarships are distributed by colleges and universities, foundations, charitable trusts, etc to the students. Scholarships are offered in various criteria and types like merit-based, major-based, career-specific, need-based, etc. They are awarded based on GPA, ability, etc.
What is the difference between a Grant and a Scholarship?
There is no such difference between grants and scholarships as students treat them as synonyms but there are some important differences as well. Both are the type of gift aid that students don’t need to be repaid and earned. Sometimes, students take loans to complete their college education and these loan amounts need to be repaid but scholarships and grants are not like this. The differences between scholarships and grants are as follows.
- Grants are based on financial need and which is the difference between the expected family contribution and college cost of education. Scholarships are based on merits which means the average GPA, and other academic, artistic, and athletic awards.
- Grants are awarded by colleges, universities, and state and federal governments. Scholarships are awarded by the private providers. The list of providers includes professional organizations, foundations, unions, non-profit organizations, religious institutions, and employers.
- Grants are not given according to the types of categories while scholarships are given based on categories like need-based, major-based, and merit-based.
- Grants are received by colleges and universities then they give to eligible and deserving candidates. Scholarships are given directly to the students.
How are Grants and Scholarships different?
Grants and scholarships are different from each other only due to some points like sources, categories, eligibility, etc. Now, let’s understand the difference between grants and scholarships by knowing about the sources and ways of getting grants and scholarships.
Sources of Grants and Scholarships
The major sources of grants and scholarships from where they are funded are as follows.
- Colleges: Most of the time colleges themselves provide various grants and scholarships to deserving candidates. Colleges provide either merit-based or need-based grants and scholarships but sometimes they provide a combination of merit-based and need-based. The eligibility criteria and requirements list are quite hard and strictly followed by them which means students need to focus on their requirements in a good manner. Otherwise, they will not qualify for these scholarships and grants.
- Governments: State government and federal government also provide scholarships and grants for the welfare of students. The federal government provides need-based grants for the students and it is the largest source of financial aid. Pell Grant is an example of this need-based grant. The state government provides funds for the students who are attending college in their state.
- Private organizations: There are many private organizations available that provide grants and scholarships and these organizations are called outside scholarships. It includes companies, foundations, clubs sponsors, community centers, etc. Some major examples of private organizations which provide scholarships are family religious centers, labor unions, parents’ employers, and some organizations like Boy Scouts of America and 4-H.
How to get Grants and Scholarships?
The application process for grants and scholarships is different according to the organizations to which you are applying. The basic steps to get grants and scholarships are as follows.
- You have to fill out the application form at FAFSA to get federal financial aid. FAFSA is a Free Application for Federal Student Aid. A lot of colleges and universities use FAFSA for financial aid.
- You have to check the requirements of your college as well because some colleges require you to fill out the CSS profile and their own printed forms. For this, you have to contact your college financial aid office or admission department.
- You can also apply for outside scholarships and grants because sometimes students are unable to qualify for college scholarships. So, outside scholarships which are provided by private organizations are available for you. You can search online through Bold.org, the college board’s scholarship search, etc. For these, you have to fill out their application forms and must submit all the required documents on time.
What is the reason for applying for Grants and Scholarships?
The main reason for applying for financial aid is to reduce the burden of college expenses. With these grants and scholarships, they do not have to take loans and debts as loans may create a lot of burden on students because they need to be repaid. Unlike, scholarships and grants are gift aids that need not be repaid.
Conclusion
Grants and Scholarships are almost the same and students consider both words as synonyms but they are different from each other due to some reasons like sources, eligibility, the application process, etc. On the other hand, both are considered gift aid which does not need to be repaid. Scholarships are provided to the students who are academically qualified and grants are provided to the organization like non-profits and colleges. Colleges will get grants to improve their academic facilities and research programs. So, scholarships give direct benefit to the students while grants provide them a better environment and opportunities.