What's the difference between scholarships and grants for college?

I'm trying to figure out how to pay for college, and I keep seeing the words 'scholarships' and 'grants' tossed around. They sound similar, but I'm assuming there's a difference. Can someone explain what sets them apart? Also, are there different criteria for receiving them, and are any of them harder to get?

Scholarships and grants are both types of financial aid that can help cover the cost of college. They are often referred to as 'free money' because they do not usually need to be paid back like student loans. However, there are some key distinctions between them.

Scholarships are typically awarded based on merit, meaning your academic achievements, athletic skill, artistic ability, or other talents. They might also be awarded based on other factors like your intended major or your background. For instance, some scholarships are designed for students from particular ethnic or racial groups, or for those who are first in their family to attend college. Scholarships can be offered by various sources, such as colleges, private organizations, and businesses.

Grants, on the other hand, are primarily need-based, meaning they are handed out according to your financial situation. The most well-known grant is the Federal Pell Grant, but states, colleges, and private organizations might also provide them. A grant's goal is to make college accessible for students who may not have the financial resources to attend otherwise.

The process of receiving these types of aid can differ too. Scholarships often involve an application process where you may need to write an essay or provide letters of recommendation. Grants might simply require you to fill out the Free Application for Federal Student Aid (FAFSA), though some may have additional application steps.

As for which one is harder to get, it can vary. Some scholarships are extremely competitive, with only a small number of recipients per year out of large application pool. On the other hand, if your financial need is high, you have a good chance of receiving need-based grants.

So, while scholarships and grants can both be great ways to finance your education, they cater to different needs and have different criteria. You should take advantage of both and apply for as many as you qualify for to maximize your financial aid.