What is the Difference Between a Grant and a Scholarship?
There are many ways to get financial aid, but there are differences between grants and scholarships. Knowing the difference between these two types of aid can help you determine which one is right for your needs.
Scholarships are monetary aid given to students who demonstrate exceptional academic or athletic ability. They do not need to be repaid.
Grants are Need-Based
Need-based grants are a type of financial aid awarded to students based on their documented need. They are not loans and do not have to be repaid, as long as a student maintains satisfactory academic progress and meets all other eligibility requirements. Need-based scholarships and grants are offered by the government, state governments, colleges and private foundations.
The most common need-based grant is the Pell Grant, which is provided by the federal government. It is a relatively large grant program that takes into account income as the primary factor in determining how much money a student may receive. It is available to low-income students who have filed a FAFSA and are in need of financial assistance.
A similar need-based grant is the FSEOG (Federal Supplemental Education Opportunity Grant). It is also given to students who have financial need and who are pursuing a postsecondary education at a particular school. The amount of funding awarded varies from year to year and is determined by the school that a student chooses to attend.
Other need-based grants are offered by the states, including grants and work-study programs. These can be used to pay for books, tuition, fees and other college-related expenses.
For example, in New York, the state government offers a number of grant programs, including the New York Tuition Grant and the Tuition Waiver Program. These grants can be used for textbooks, travel and other costs associated with a student’s education at a New York college or university.
There are also a number of federal and state programs that offer scholarships to students based on academic performance, ethnicity or other criteria. These programs are designed to help high-achieving students with limited family incomes access a college education, even if they would otherwise be unable to afford it.
There are many other types of financial aid, including direct subsidized and unsubsidized loans. These loans are free from interest while you are in school and are repaid only when you drop below half-time status or graduate.
Scholarships are Merit-Based
A merit scholarship is a type of aid that awards money to students based on their achievements and talents. These types of scholarships are usually given by schools, government agencies and private businesses. They may be based on academic achievement, athletic accomplishments or other special interests.
Depending on the sponsor, merit-based scholarships can be awarded to high school graduates or current undergraduates. They often include requirements for students to maintain a certain GPA, attend events, submit updates or perform community service, among other things.
Merit-based scholarships are typically provided by schools, but some companies also offer merit scholarships to help promote their fields and attract students into their workforces. These organizations want to provide the best possible employees and, by providing scholarships, they can do so.
In addition to academic scholarships, colleges may offer merit-based athletic scholarships. This is a way for them to lower the cost of their tuition and attract students with strong athletic ability.
Many colleges have separate merit-based scholarship applications, so it’s important to check with your college before applying for a scholarship.
If you’re applying for a merit-based scholarship from your college, the admissions office will review your transcript and your SAT or ACT scores to determine whether you are eligible. Most schools will also consider your teacher recommendations, region or state of residence, high school of attendance and community involvement in addition to your grades and test scores.
It’s also worth noting that some colleges will award their own merit-based scholarships, rather than relying on private sponsors. For example, Cukanna reported that Duquesne University awarded 92% to 98% of its incoming freshmen with merit-based scholarships.
A good resource for finding out if your student is eligible for merit-based scholarships is the National Merit Scholarship Database. This site costs $20 a month and provides a comprehensive list of scholarship options for students.
There are a variety of types of merit scholarships, so it’s best to look for ones that fit your personal goals and your unique situation. These include academic merit scholarships, art and music scholarship programs, leadership-based awards and even those for community service or other extracurricular activities.
Grants Are Free
Grants are free money given to individuals, businesses and organizations that meet eligibility criteria. These funds do not need to be repaid, making them one of the most popular ways to get cash assistance.
They are also a great way to start or expand a business, as they can provide funding for expenses such as equipment and marketing campaigns. However, they can be a challenge to receive, and they do not always renew, so they need to be reapplied for each year.
There are many different kinds of grants. Some are need-based, while others are merit-based. They come with specific requirements and application processes, so it is important to research them carefully before applying.
These grants can help a small business or start-up gain credibility among potential clients and investors. They can also give your organization the boost it needs to become a viable option for future government subsidies or grants.
Some grants are funded by governments, while others are donated by private companies. This means that your application is unique to the grantmaker, and you need to follow their guidelines in order to have a chance of getting approved.
While most grants are based on financial need, some are offered to people with outstanding academic records or extracurricular activities. These are often called “merit” scholarships.
Another benefit of applying for a grant is that it can put your organization on the map and increase your visibility. This can lead to more prestigious governmental subsidies in the future.
You should also remember that some grants have administrative costs associated with them. These can include salaries for staff who write the grant applications, or fees for an administrator to keep track of delivery of goods and services.
These can be expensive, so they may not be worth it if your organization does not need the money for business expenses. They can also be a red flag when it comes to grant fraud.
A lot of scammers prey on people seeking to apply for grants. They can call you, email you, or even send a letter that claims you have won a free grant. It may sound like the real deal, but it is not.
Scholarships Are Requirements
Scholarships are an excellent way to receive financial support for your education. They can help you cover the cost of tuition and other expenses, allowing you to focus on learning instead of worrying about money.
Most scholarships are based on merit and are awarded for academic achievement, extracurricular involvement, or dedication to a particular field of study. Merit-based scholarships are often the most competitive of all types and may require students to perform well on standardized tests, such as the SAT or ACT, in order to win.
These scholarships are a great way to prove your worth as a student and make you stand out from other applicants. They also give you a leg up when applying to college in the future, as they show that you’re a top-tier candidate.
Another good thing about merit-based scholarships is that they’re free. In addition to covering the costs of your tuition, they can pay for other necessities that aren’t covered by student aid and loans, such as books and food.
If you’re a high school student, be sure to check with the colleges you want to attend and see what scholarships they have. Many will have specific age and grade requirements, so you’ll know exactly what you need to do in order to apply.
As a rule, the earlier you apply, the more chances you have of winning a scholarship. This will allow you to prepare for the application process and ensure you have all of your documents ready when the time comes to send them off.
You should also make sure that your letter of recommendation is complete and well-written. Whether you’re writing it yourself or asking a friend or family member to write it for you, be sure to give them plenty of time to finish their letters and get them sent off before the deadline.
Depending on the type of scholarship, you may be required to submit an essay or written content. If this is the case, make sure to outline your essay and draft it well in advance of the deadline. This will help you avoid spelling and grammatical mistakes that can cause you to be disqualified.