There is a clear distinction between scholarships and grants, although both serve as useful ways to finance one’s education through college, as they offer free money to cover tuition fees and other related expenses. Firstly, let’s define the two terms. Scholarships are monetary awards given to students to support their education. Grants are also a form of money provided for various purposes. Both are similar in that they provide a student with free money that does not need to be repaid, as is the case with student loans. This is why experts suggest that a student should exhaust all sources of free funds before applying for loans. One key difference between a scholarship and grant is that while scholarships are mostly given to individuals, grants are given to institutionally based projects. Through this article, let’s examine other differences between the two terms.
What are Scholarships?
Scholarships mainly come from educational institutions. However, they are also provided by employers, companies, and other organizations. These scholarships have various eligibility criteria such as gender, race, financial status, special skills, and so on.
A student who applies for a scholarship for higher education or a special degree can pursue their studies free of charge because the institution pays for the student’s education. When speaking of scholarships, some come in the form of full scholarships where the student does not have to pay for anything at all, while there are other types of scholarships as well. These scholarships are only part scholarships. In such cases, the student also has to make a financial contribution to complete their education. Now let’s move on to the word grant to understand the difference better.
What are Grants?
Grants are a source of money from the government and other private foundations that are nonprofit. Popular types of grants are need-based and merit-based. Need-based grants go to students who are financially weak and require assistance to continue their studies. Merit-based grants take into account the talent of the individual along with financial need.
Grants are available for various purposes such as starting a business, community service, for NGOs, employment and training programs, environmental issues, legal services, sports, arts and culture, and for studies in the fields of agriculture and sciences. Grants are always for a specific purpose and cannot be utilized to further one’s requirements, such as buying a house or a car. Grants have been designed to assist people who want to do something worthwhile for the community and society at large, whether it’s in the field of medical research or the development of a product or service that might be useful for society. Educational Grants are generally for developing colleges and training centers that would be beneficial for a large number of students in a particular area.
Key Takeaways
- Scholarships are monetary awards given to students in the form of money to support their education, whereas Grants are a form of money provided for various purposes.
- Scholarships mostly come from educational institutions but can also be provided by employers, companies, and other organizations, while Grants are a source of money from the government and other private foundations that are nonprofit.
- While scholarships are mostly given to individuals, grants are given to institutionally based projects that are beneficial for the community at large.
