These terms seems to be a lot straightforward but people still tend to mix it up. Though both are about financing, there are clear Difference Between a Grant And a Scholarship and you are about to find that out now.
What is a Grant?
A grant is a form of financial aid that is offered to students by the government. Some colleges may apply for grants from the government to aid in the financial burden of the students. Grants are typically offered for programs or courses that involve a higher degree of scholarship as well.
While grants can be used for costs associated with tuition and other academic needs, they are not intended to be a source of long term financial assistance. They are meant to help alleviate the burden of the students during their time of studies.
For many, they serve as a stop gap measure while the student either works to earn enough money to repay the funding or takes out a loan. What is a scholarship? Scholarships are grants that are awarded to students.
What is a Scholarship?
A scholarship is not as intense as a grant. A scholarship is a grant or free money which can be taken to college or universities. These funds are usually obtained from individuals, foundations and corporations to be awarded to students based on academic achievement, non-academic qualities or financial need.
Students with these scholarships will usually not pay any fees or tuition for the study duration, they are also required to complete certain educational or service requirements.
How do they differ? According to the College Board in 2014 there were 1.8 million grant and scholarship recipients at American schools. Scholarships vary in the amount of money and, as mentioned before, are not required to pay fees for tuition.
How Do they Differ from Each Other?
A scholarship is an investment, not loan. There is no guarantee of repayment. It usually comes from a company or individual, not from the state, federal, or local government. Students who are selected are usually picked because of their grades, leadership skills, or performance in the community.
This type of scholarship usually comes with a small stipend as a monetary reward for the student’s performance. This type of scholarship can usually be applied to the cost of college only.
They cannot be used at another school in another state. A grant, on the other hand, is a loan that students receive and are expected to pay back. Most of the time grants are awarded to families who need a financial help for some college expenses, such as tuition. They often come with tax benefits.
Which one Should I Apply for?
Frequently students and their parents ask themselves, whether or not to apply for any type of financial aid. With the sheer variety of financial aid available, parents and students need to consider the different types available. In addition, every school and college has its own scholarship, financial aid, grant, or loan program.
Here are the main types of financial aid available: Federal: This can be a grant, loan, or federally subsidized student loan. State: This is a grant that is directly given by the state of the respective state for the purpose of educating the student in the particular state. Private: This can be a loan and/or grant from private lenders. Reciprocity: This is a grant given from the state of the respective state of the respective state of the United States.
If you have all the other vital information about high school requirements, a nice recommendation letter, and several credits towards an undergraduate or graduate degree, it is possible to apply for a financial aid package. Scholarship applications are rarely a bad idea.
Author Bio: Angela Roth is an author of instructional and career-related books for teens and tweens. Angela has written for publications like Scholastic, TVGuide, SYSW Newsletter, and a variety of other well known publications.