Difference between a grant and a scholarship?

I'm starting to look into financial aid for college and I've come across terms like 'grants' and 'scholarships' a lot. I know both can help pay for college, but I'm a bit confused about how they differ. Are there specific criteria that separate grants from scholarships? Do they come from the same sources, or do you apply for them in different ways? If someone could explain how grants and scholarships are different and maybe give examples, that would really help as I plan my applications.

Both grants and scholarships can indeed provide much-needed funds for college without requiring repayment, which is a common characteristic that sets them apart from loans. However, the key difference between them often lies in their basis for distribution.

Scholarships are typically merit-based, meaning they are awarded based on the student's accomplishments, achievements, or talents. Merit can be in various forms such as academic performance, athletic abilities, artistic talents, or involvement in extracurricular activities or community service. For instance, a student with a high GPA might be eligible for an academic scholarship, or a talented athlete could earn an athletic scholarship. Scholarships can come from various sources, including colleges and universities, private companies, community organizations, and national corporations or foundations.

On the other hand, grants are often need-based. They are usually awarded based on a student's financial situation. The most common type of grant is the federal Pell Grant, which is awarded to students with exceptional financial need. However, grants can also come from state governments, colleges, and private organizations. To be considered for most types of grants, students usually need to complete the Free Application for Federal Student Aid (FAFSA), which helps determine their eligibility for financial aid.

It's possible to receive both grants and scholarships, and many students pursue both types of financial aid to maximize their funding. Both types of aid can make a huge difference in making college more affordable. I encourage you to apply for both and explore as many opportunities as possible.