What are the Differences between a Grant and a Scholarship?
Many people do not understand the difference between a grant and a scholarship and use the terms interchangeably. In spite of the fact that people who qualify for either do not have to repay the loan, there are a number of subtle differences that you should know.
The first thing you need to note under requirements and obligations is that grants that are offered for education purposes are issued based on need while scholarships are issued to the most qualified candidates. More often than not, the requirements for scholarships are more stringent and thorough and this makes the application process competitive. For instance, you may be required to submit an essay, attend an interview, or answer questions that are tailored to determine your merits or suitability.
Most scholarships are issued to qualified applicants for education purposes while grants can be issued for not only education but also other reasons that may not be directly linked to education. Based on this fact, it is true to state that all scholarships are grants but not all grants can be referred to as scholarships. Therefore, if you need money to pay college tuition fees, consider applying for a scholarship. On the other hand, if you need money for other tasks that will not only benefit you directly, but also the community such as starting a small business, focus on grants.
In some instances, scholarships are awarded to certain students based on their athletic, academic, musical talent, engineering skills, or any other community-based achievement. Individual education grants that are offered by the federal government require successful applicants to fill the FAFSA every year they are in school.
Understanding the differences between grants and scholarships will help you know what to apply for when future opportunities arise. This information will also increase your chances of receiving funding from the state and federal government.