Grants and scholarships, also called Gift aid, is financial aid for studies, which the person does not need to repay. These college gift aids form an important part of a person’s financial planning regarding education.
Although these two gift aids have some minor differences, the two are almost always used interchangeably. Grants are aids awarded based on your status in society, while scholarships are rewarded based on your merit status.
Scholarships are based on your entire family status and therefore do not change with your future performance. Still, scholarships may have certain conditions you must meet in your studies and certain qualifications you must maintain to receive them on a continuum.
Grant vs Scholarship Comparison Table
You can give for any specific purpose
It is almost always given for studies.
Based on need and benefits obtainable through the grant
Based on merit status
Factors considered in the award
Based on financial situation
Based on merit achievements
Students who can benefit
Undergraduate and graduate students
Mostly undergraduate students
Mostly government agencies
What is Grant?
Grant is financial assistance provided by government agencies, federal, state, or local governments that the recipient is not expected to repay.
Each year, more than 26 federal agencies award more than 1,000 welfare grant programs to people who need money for various purposes.
The grants help individual people and are also put in place to save the country’s economic situation, which is one of the governing body’s Nobel responsibilities.
The only downside to the grant is that it requires a complex application process that needs to be backed up with a good convincing proposal of how the grant will serve the betterment of the local community.
Subsidies granted by the government or free of taxes, interest, and any other quality of conventional economic aid are based on the need and situation of the person.
Grants.gov is the website that offers multi-thousand dollar grants each year. However, the applicant must overcome the complex process of submitting a proposal for their business plan or need. This should be approved before receiving grants.
It is also said that, in essence, there are only about four main types of grants,
- competitive financing
- Formula Financing
- Continuous financing
- transfer financing
But the typification of grant funding varies according to the fields we are talking about.
What is a scholarship?
Scholarships are the economic aid granted mainly to undergraduate students for their training by universities and other educational institutions. Scholarships are awarded solely based on the merit status of the student.
Scholarships may be one-time aid or renewable aid for which the student must maintain substantial progress in their education after the scholarships are awarded.
If it covers the full fee for the education for which the student opted, then the remaining money can be reimbursed to the student from the institutions.
These scholarship aids come from one of the many sources that can be clubs, organizations, foundations, commercial firms, or universities….
But there are some scholarships that even students who are not excellent in their academic studies can take advantage of. All you need to do is search for the right scholarship awarding bodies and apply to them after a thorough analysis of their criteria for the scholarship and check if you apply for it.
The most common ways you can get scholarships are:
- Take advantage of your hobbies and extracurricular skills that you are good at. Search institutions are organizations that are ready to award scholarships to the person who excels in the hobbies that you are excellent at.
- Register on an online scholarship website and submit a proposal with a clear portfolio of what you are looking for scholarships.
- Meet with the schools or colleges you’re seeking admission to and see if they’re offering scholarships to students who have your scores or qualities.
- Consider looking into scholarship plans for minority students or students from a particular locality.
You should also consider the time to apply for a scholarship because some scholarship programs held each year will have a limited period within which you can only apply.
Main Difference Between Grant and Scholarship
- Federal agencies provide grants to local government and public government services. Universities or anybody or organization award scholarships directly to students.
- Grants can be awarded for any purpose. Scholarships are awarded solely for the student’s education.
- Grants are awarded based on the need and financial status of the individual or organization. Scholarships are awarded based on an individual’s merit status, regardless of their family status.
- Grants have no limitations, but the money awarded must be used only for the purpose for which it is awarded. The scholarship can be used for any purpose when it exceeds the fee necessary for education.
- Grants always require applicants to file FAFSA (Free Application for Federal Student Aid). The scholarship does not always require the completion of FAFSA (Free Application for Federal Student Aid).
Grants and scholarships are used almost interchangeably, but they have one big difference. In essence, both are financial aid offered for individuals or individuals’ welfare, which does not need to be repaid.
People who received a grant for educational purposes may call it a scholarship without knowing the difference between them.
Although these two financial aids are excellent, one should analyze both modes thoroughly and apply the most suitable one according to their needs.
If a person has a good business idea and needs help with financing, they can immediately apply for grants from government agencies.
Courtesy: Queens College