What's the difference between a scholarship and a grant?

As I start looking more into financial aid options, I'm getting a little confused between scholarships and grants. They both seem to help with paying for college, but are there specific differences in how they are awarded or repaid? Also, are there situations where I might qualify for one but not the other? Any advice from someone who's been through the process would be super helpful!

A great question. Think about scholarships and grants as types of financial aid that you don’t need to repay - they are essentially 'gift aid.' However, they differ in how they're often awarded.

First, scholarships are typically merit-based. They may be awarded based on academic achievement, athletic ability, or even participation in certain activities. This merit can be anything from maintaining a certain GPA, scoring high on standardized tests, having a special talent, or a proven track record of community service, to name a few examples. Scholarships are funded by various sources, such as universities, private organizations, or even individuals.

Grants, on the other hand, are usually need-based. They are designed to provide financial assistance to students whose family income or financial situation might prevent them from affording college. One common example of this is the Pell Grant, which is awarded by the federal government. The eligibility for these grants is typically determined using the information you provide on your Free Application for Federal Student Aid (FAFSA), so it's essential to fill out the FAFSA accurately and promptly.

That being said, it is entirely possible to qualify for scholarships and not grants or vice versa. For instance, a student from a family with a higher income may not qualify for need-based grants but could earn a scholarship based on academic or athletic achievements. Conversely, a student with financial need may be eligible for grants even if they don't meet the criteria for certain scholarships.