20+ Difference between Grant and Scholarship

It’s no secret that college isn’t cheap. It becomes more expensive to get a higher education or attend university.

The typical student cannot afford to cover all of their school costs. The idea of providing such persons with scholarships and grants has been put up.

Though they have many similarities, grants, and scholarships serve distinct purposes. When comparing grants and scholarships, the differences are subtle.

Financial assistance through grants and scholarships is available to help students pay for their education.

Table of Contents

Comparison Between Grant And Scholarship

Parameter	Grant	Scholarship
Meaning	Students who require financial aid may apply for grants, the amount of which depends on their family’s annual income. The Pell Grant is one of the best-known federal awards. State scholarships are often exclusively given to students in that state.	Academically-distinguished pupils regularly get scholarships. In addition, students with commendable attributes, such as physical prowess, academic accomplishment, or extracurricular involvement, might compete for cash prizes. Family history or organization membership may also be considered for awarding scholarships.
Funds	Grants are a kind of financial aid given directly to the higher education establishment rather than the student. Students do not directly get grants; higher education institutions receive grants. The Pell Grant is an example of one of these well-known programs, and the federal government provides it to eligible students.	Every year, a wide variety of private companies, nonprofits, and public agencies provide scholarships as a means of providing financial aid to deserving students. Examples include corporations, congregations, people, grassroots movements, academic departments, and former students and faculty.
Advantages	You must show the financial necessity to obtain a grant. Each grant applicant’s eligibility for federal money is determined by their FAFSA (Free Application for Federal Student Aid) status. The recipient’s accomplishments or merit have nothing to do with these awards.	Scholarships are typically offered to students who excel academically or exhibit leadership via extracurricular activities. Grants are awarded based on an application and justification for financial necessity, which must be submitted in most situations.
Eligibility	Students who are currently engaged in an educational program at any level are eligible to compete for the prize. This includes students who are enrolled in elementary school, middle school, high school, or college.	United States citizens must qualify for financial assistance from the federal government or any state. These kinds of prizes are often given to undergraduate students as their winners. Fellowships are a kind of monetary assistance offered privately to deserving graduate students. These fund cutting-edge research and academic programs to help further their missions.

Major Difference Between Grant And Scholarship

What exactly is Grant?

Financial need, calculated as the gap between the college’s cost of attendance (COA) and the anticipated family contribution (EFC), determines eligibility for need-based financial aid (EFC).

The EFC is used as the only determinant for several programs, including the Federal Pell Grant. It is common for state grants like California’s Cal Grants and New York’s TAP Grants to have an income cap over which applicants are ineligible.

The federal government, state governments, and institutions all hand out grants.

Key Difference: Grant

People may submit grant applications for financial assistance for several purposes, including advancing their education, completing a project, or establishing a business.

After a grant has been approved, very few more steps need to be taken with it.

Students who cannot attend college due to financial constraints may submit an application for a grant.

A grant might potentially be awarded to any student, irrespective of their current level of academic achievement.

Financial necessity is one of the factors examined when deciding who will get a grant. Scholarships are in no way comparable to this scenario.

What exactly is Scholarship?

Scholarships are awarded based on academic achievement. Academic achievement, creative ability, and athletic prowess are all common criteria for merit-based financial aid.

Awarding scholarships based on uncommon skills is also possible. For instance, the Stuck at Prom scholarship contest awards $10,000 to the best-dressed and $10,000 to the best-dressed tuxedo.

Common private scholarship sponsors include foundations, philanthropists, professional membership organizations, fraternal groups, non-profits, and religious institutions.

Key Difference: Scholarship

Scholarships are only available to current students.

Most scholarships need a certain grade point average or another criterion to be fulfilled or maintained.

Scholarships may be given to deserving students who have excelled in their academic or athletic endeavors during their schooling.

Scholarships are most helpful to applicants considering furthering their education by enrolling in college.

A student may be awarded a scholarship for their academic achievement, participation in extracurricular activities, or membership in a particular club.

Contrast Between Grant And Scholarship

Definition:

Grant- Students who can establish that they need financial assistance are eligible to apply for and receive grants, the amount of which is determined by variables such as the yearly income of their home.

Most grants originate from governmental organizations, and the Pell Grant is one of the federal government’s most well-known rewards.

As a rule, a state only provides scholarships to students enrolled in schools inside that state.

Scholarships- Scholarships are often given to deserving students who have distinguished themselves academically.

Students who exhibit admirable qualities, such as outstanding athletic prowess, excellent academic success, or membership in a specific extracurricular activity, can compete for them and receive monetary awards.

Other considerations, such as one’s family history or participation in a particular group, may also be considered when deciding who will get a scholarship.

Source of funds:

Grant- Grants are a kind of financial assistance provided not to the individual student but to the institution that the student attends for their higher education.

Grants are not given to students directly but to the institutions they attend to further their education.

One of these well-known programs is the Pell Grant, which is funded by the federal government and awarded to students who meet certain requirements to attend college.

Scholarship- One of the most common forms of monetary assistance that is made available each year by a broad range of organizations and governments all around the globe is scholarships.

This assistance may be used to help students pay for their education. Some examples of this would include organizations, churches, individuals, people’s movements at the grassroots level, academic departments, and former students and instructors.

Pros:

Grant- One of the prerequisites for being eligible to get a grant is to be able to provide evidence that you need financial support.

The Free Application for Federal Student Aid, often known as the FAFSA, is the document that is used to establish whether or not a candidate for a grant is qualified to receive financial support from the federal government.

These accolades have nothing to do with the achievements or merit of the person receiving them.

Scholarship- Scholarships are often given to students who have achieved academic success or who have shown leadership abilities via their engagement in extracurricular activities.

In the majority of instances, you will be expected to submit an application form along with an explanation of the reasons why the grant money should be given to you.

Usage:

Grant– You can have your federal grant money sent directly to your school, delivered to you, or divided between you and your school.

Unless otherwise stated, Bold.org grants will be given directly to the recipient’s institution. A graduate loan grant, such as the Forget Your Student Debt.

No-Essay Grant will have the funds paid directly to the recipient, who may then distribute them to their respective loan servicers.

Scholarship- How you put a scholarship to use depends on where it originated from. If you win a scholarship close to home, the money could be deposited into your bank account, while institutional awards might be applied straight to your tuition.

If you are awarded a scholarship on Bold.org, the funds will be routed directly to your school’s financial aid office.

Students in high school who are awarded scholarships on Bold.org can have those funds sent straight to their chosen post-secondary institution.

Frequently Asked Questions (FAQs)

Q1. Do you make repayments on grants?

The fact that you won’t have to make any payments toward the money that you get as a grant makes it an excellent choice for financing your education.

A grant, as opposed to a federal student loan, is a source of free money; also, grants are often distributed based on one’s demonstrated financial need.

In addition, they may be granted based on the course, the school, the background, or the topic.

Q2. What do you hope to accomplish by being awarded a grant?

Your suggestions and undertakings may qualify for financial assistance from the government through a grant; this would help the government achieve its aims of enhancing public services and stimulating economic activity.

Grants provide financial assistance to a broad range of domestic assistance programs, including those essential for disaster relief and recovery and those at the cutting edge of scientific inquiry (CFDA).

Q3. What are some of the negative aspects associated with being awarded a grant?

Grants from the government may be able to offer an instant boost to finances, but they can only be considered as a short-term solution since they are unable to be sustained.

This suggests that you cannot depend on them to keep you afloat for lengthy periods of time and that you will need to find other forms of assistance.

Q4. Who is eligible to get scholarships?

Scholarships may only be awarded to students who have shown exceptional academic achievement. It is not worth your time to apply for a scholarship since a student will not earn enough money.

The process of applying for a scholarship may be time-consuming and requires you to adhere to many rules. There is only room for one scholarship application on your part.

Q5. What are some of the benefits associated with being awarded a scholarship?

It helps you reach your academic and professional goals by removing the barrier of financial burden, which in turn offers you greater power.

After receiving a scholarship, you won’t have to stress about how you’ll pay for things anymore.

As a consequence, you will have more time to study, enabling you to enhance both your level of knowledge and your performance in the classroom.