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

I'm starting to go through my financial aid options for college and often see grants and scholarships mentioned. They both seem to provide money to students, so I'm a bit confused about how they're different from each other. Is one better than the other, or do they typically cover different expenses?

Also, are there different requirements or application processes for grants compared to scholarships? Any clarity on this topic would be really helpful as I try to navigate this whole process.

It's great that you're being proactive in understanding your college financial aid options. Both grants and scholarships are monetary awards that you don't have to pay back, but there are differences in where they come from, why they're awarded, and how to get them.

A grant is a need-based form of financial aid, often provided by the federal or state government, but also sometimes by individual colleges. Your eligibility for a grant typically depends on your family's financial circumstances - lower income families generally qualify for more grant aid. Examples include the Federal Pell Grant and the Federal Supplemental Educational Opportunity Grant (FSEOG). For these, you'll need to complete the Free Application for Federal Student Aid (FAFSA) to qualify. Note, grants do not need to be repaid, as long as you meet the grant's requirements.

Scholarships, on the other hand, can be either need-based or merit-based, and they are offered by a wide array of entities including colleges, private organizations, and corporations. They may be awarded based on academic achievement, artistic or athletic talent, community service, intended major, and sometimes financial need. The application process often requires submitting academic transcripts, letters of recommendation, essays, and sometimes completing an interview. It's important to be aware that scholarships often have their own unique deadlines, separate from college application deadlines.

In terms of expenses, both grants and scholarships can generally be used for tuition, room and board, textbooks, and other educational supplies.

Neither form of aid is inherently better than the other; they're just two different means of helping students cover the costs of college. In fact, many students receive both grants and scholarships as part of their financial aid package. Applying early and often for scholarships can certainly help increase your total financial aid.