Difference Between Grants and Scholarships Explained

I'm a little confused about the terms 'grant' and 'scholarship' and was hoping someone could clarify the difference between them. I know both can help pay for college, but are they awarded differently or have different eligibility requirements? As I start searching for financial aid options, I want to make sure I understand what I'm applying for. Any explanations or examples would be appreciated!

In general, both grants and scholarships are forms of financial aid that you do not have to pay back, unlike student loans. There are, however, some differences between the two, particularly when it comes to how they're awarded and what they're based on.

A scholarship is typically awarded based on some type of achievement. This could be academic merit, athletic ability, community service, or interests. For instance, you might win a scholarship based on your high school GPA or your performance in a science competition.

On the other hand, a grant is often based on financial need rather than merit. The most common grant is the Federal Pell Grant, which you might qualify for if your family's income is below a certain threshold. To determine your eligibility for grants, you'll usually need to complete a Free Application for Federal Student Aid (FAFSA), which assesses your family's financial situation.

There can be a bit of a gray area with some scholarships, as some "need-based scholarships" take into account financial need in addition to some type of merit or achievement. Similarly, some grants might have eligibility requirements beyond financial need. However, the above definitions generally hold for the majority of scholarships and grants.

To find scholarships, you can search various online databases, and some high schools also have resources to help students find scholarships. To apply for grants, you'll generally need to start by filling out the FAFSA.

In summary, both grants and scholarships can significantly help to offset college costs, but they are awarded based on different criteria. When searching for financial aid, it's a good idea to explore both options. Good luck!