What Is the Difference Between a Grant & a Scholarship?

When looking for college funding, a prospective student may see opportunities for both grants and scholarships. If you're wondering what is the difference, and why does it matter to you, read on.
  1. Grants

    • A grant is funding typically given by a non-profit organization, usually for a specific project or because the recipient met certain criteria. A grant may be given for any purpose, not necessarily just for education.

    Scholarships

    • Scholarships are specifically for students to pay for education. They usually have requirements for the student before and after they've been awarded the scholarship. Typical requirements include maintaining a specific GPA or taking a specific number of credit hours.

    Ongoing Requirements

    • When you receive a grant for a project, you may be required to provide ongoing reports to the funding organization about your project. In some cases, grant and scholarship funds are released according to a schedule, and funds may be withheld if the reporting or minimum criteria are not met.

    Repayment

    • Neither grants nor scholarships require you to repay the funding organization. Only loans require repayment.

    Financial Need

    • Scholarships and grants are not just based on financial need. They are sometimes awarded for specific majors, activities, abilities, affiliations or interests.

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