Scholarship vs Grant: What's the Difference for College Funding?

I'm diving into financial aid options for college and I keep hearing about scholarships and grants. They seem pretty similar on the surface, but I'm wondering, what's the actual difference between a scholarship and a grant? Are there different qualifications for each, and should I be applying for both to maximize my chances of getting financial aid?

That's a great question! Scholarships and grants are indeed similar in that they are both forms of "gift aid," meaning money that you don't have to pay back, unlike loans. However, they have fundamental differences too.

Key Differences:

1. Source of money: Grants are often need-based aid awarded by federal and state governments, although some institutions and private organizations also offer grants. Scholarships, on the other hand, are usually furnished by schools, private organizations, and philanthropists.

2. Basis of awarding: Grants are mostly need-based, meaning they are awarded based on your family's financial situation. The Pell Grant is an example of a popular federal grant based on need. Scholarships, however, can either be merit-based (awarded due to academic, athletic, or artistic achievements) or need-based, or a combination of both.

3. Application process: For federal and state grants, you generally only need to complete the Free Application for Federal Student Aid (FAFSA). Scholarships, however, often require a separate application, and may require essays, letters of recommendation, or interviews.

As for whether you should apply for both - absolutely! You should take every opportunity to secure funds for college. The more funding sources you can tap into, the less you'll have to rely on loans, which can lead to substantial debt. Do remember to keep track of your applications, their requirements, and deadlines.

Hope this explanation helps in understanding the differences between scholarships and grants!