What is a grant?
A grant is a form of financial aid usually awarded to help students in financial need pay for college. The most common type is the federal Pell Grant, but state governments, colleges, and universities also offer grants to help cover tuition and other education expenses. Because grants are often need-based, students must demonstrate financial need through their Free Application for Federal Student Aid (FAFSA®). While most grants come from the government, some schools and nonprofit organizations also provide grants.
Quick facts about grants:
- Who’s eligible: Students in financial need
- Where they come from: Typically the federal or state governments, sometimes schools
- How to apply: Requires you to submit the FAFSA®
- How they’re paid out: Often automatically applied to your tuition if you qualify
What is a scholarship?
Scholarships are also financial aid for college, but unlike grants, they can be awarded for many different reasons. You could win scholarships for your academic achievements, athletic skills, community service, your race/ethnicity or even for your unique hobbies and interests.
Scholarships come from a wide variety of sources, from local businesses to non-profit organizations or even your college. While some scholarships are highly competitive, others may have fewer applicants than you’d expect. That’s why it’s a good idea to cast a wide net in your search and apply for as many opportunities as possible.
Quick facts about scholarships:
• Who’s eligible: Varies by scholarship, but students may qualify based on merit, financial need, unique skills/interests, or belonging to an underrepresented group
• Where they come from: Schools, non-profit organizations, foundations, businesses, community or religious groups, to name a few
• How to apply: Usually by completing the scholarship’s application and providing any requested materials
• How they’re paid out: Either sent directly to your college account or directly to you as a check or direct deposit
Key differences between grants and scholarships
Both grants and scholarships can help reduce the amount you’ll need to pay out of pocket for college. While they’re both free money for school, keep in mind these key differences:
- Eligibility requirements: Grants are nearly always based on financial need. Scholarships can be awarded for merit, financial need, community service, unique skills and interests, or belonging to an underrepresented group
- Sources of funding: Grants typically come from the government (federal or state) or the school itself. Scholarships can come from a wide range of sources, including schools, private foundations, businesses, or nonprofits.
- Application process: Grants are usually awarded automatically if you qualify through the FAFSA®. Scholarships often require separate applications, essays, letters of recommendation, or even interviews.
Explore both options to maximize your financial aid for college
If you want to pay less for your education, pursuing both grants and scholarships is clutch. If you qualify for need-based grants by filling out the FAFSA®, don’t stop there —apply for scholarships so you can earn even more free money based on your talents, passions, and background. Scholly Scholarships can help you find scholarships that fit you perfectly and it’s free, with no sign up required.
With college costs on the rise, grants and scholarships may be your key to making your education affordable. Keep up your search and apply for as many opportunities as you can!
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