Grants vs. Scholarships: What's the Difference?

I've been researching ways to fund my college education, and I keep encountering the terms 'grants' and 'scholarships'. I understand both are forms of financial aid, but can someone explain how they differ in terms of eligibility, application process, and what they actually cover? Are there any tips for maximizing the amount of aid I can receive from both sources? Trying to figure all this out while choosing the right college is a bit overwhelming!

Grants and scholarships are similar in that they are both forms of financial aid that you don't need to pay back, but there are a few key differences.

Grants are typically based on financial need and are often provided by government, either federal or state. The Federal Pell Grant is one of the most well-known. To apply for grants, you'll usually start by filling out the Free Application for Federal Student Aid (FAFSA) which uses information about your family's income and assets to determine your financial need.

Scholarships, on the other hand, are often merit-based, meaning they're awarded for achievements in areas like academics, athletics, or the arts. There are also scholarships based on other factors like your intended field of study, community service, and personal characteristics like being a first-generation student. Scholarships are offered by colleges themselves, and also by private organizations, businesses, and nonprofits. To apply for scholarships, you'll typically have to submit an application that may include things like an essay, letters of recommendation, and proof of eligibility (like a transcript for an academic scholarship).

Both grants and scholarships can be used to cover a variety of college expenses, including tuition, room and board, books, etc, depending on the specific grant or scholarship.

To maximize the amount of aid you receive, I'd recommend a multi-pronged approach. Start with the FAFSA to see what grants you're eligible for. Don't get discouraged if you don't qualify for a lot of federal aid, as there are other sources.

For scholarships, look for opportunities in all areas of your life. Your school, local businesses, and other community organizations are all potential sources. Online scholarship databases can be helpful too. College financial aid office websites often list scholarships you can apply for. Remember, even smaller scholarships add up.

The key is to start early and apply often. Scholarships and grants can be highly competitive, and you'll have better chances the more you apply for.