Scholarships and grants are both types of free money for college that you do not have to repay. The main difference lies in how they are awarded: scholarships are typically based on merit, such as academics or athletics, while grants are usually based on financial need. Understanding this distinction helps you target the right opportunities and maximize your aid package.
Key Differences at a Glance
Both scholarships and grants come from various sources, including federal and state governments, colleges, and private organizations. However, they differ in what they reward and how you qualify.
| Feature | Scholarship | Grant |
|---|---|---|
| Basis of Award | Merit (grades, test scores, talents, or specific characteristics) | Financial need (based on FAFSA results) |
| Main Source | Colleges, private organizations, nonprofits, and businesses | Federal and state governments, plus colleges |
| Application Process | Often requires separate applications, essays, or recommendations | Usually automatic after submitting the FAFSA |
| Renewal Requirements | May need to maintain a certain GPA or reapply | Typically renewed if you continue to demonstrate need |
What Are Scholarships?
Scholarships are awards that recognize achievement or potential. They can come from your university, community groups, corporations, or national organizations.
Types of Scholarships
- Academic merit scholarships – based on GPA or test scores
- Athletic scholarships – for student-athletes in college sports
- Artistic or talent scholarships – for music, art, or writing abilities
- Identity-based scholarships – for students from specific backgrounds or groups
Many scholarships require a separate application, including essays, letters of recommendation, or portfolios. Deadlines vary widely, so check each scholarship’s requirements carefully.
What Are Grants?
Grants are typically need-based and are often awarded automatically based on your Free Application for Federal Student Aid (FAFSA). The federal government provides the largest grants, such as the Pell Grant, which is available to undergraduate students with exceptional financial need.
Common Types of Grants
- Federal Pell Grant – for undergraduates with significant financial need
- Federal Supplemental Educational Opportunity Grant (FSEOG) – for students with the lowest expected family contributions
- State grants – offered by individual states, often for residents attending in-state schools
- Institutional grants – provided by colleges to meet a student’s demonstrated need
To be considered for any federal or state grant, you must complete the FAFSA each year. Your eligibility is recalculated annually, so your award may change if your family’s financial situation changes.
Which One Should You Pursue?
You should pursue both scholarships and grants to reduce your out-of-pocket college costs. Grants are often easier to get because they are based on need, but scholarships can be more competitive since they reward achievement.
Start by submitting the FAFSA as early as possible after October 1 to maximize your grant eligibility. Then, search for scholarships that match your strengths, background, or interests. Use free scholarship search tools, check with your high school counselor, and review each college’s financial aid website.
Can You Receive Both?
Yes, you can receive both a scholarship and a grant at the same time. In fact, many students combine them to cover tuition, fees, and living expenses. However, your total aid package cannot exceed your cost of attendance, so colleges may adjust your other aid if you win an outside scholarship.
When you receive a private scholarship, you must report it to your college’s financial aid office. The office will then adjust your package, which may reduce your loans or work-study before reducing your grants. This is beneficial because it lowers your debt.
Actionable Tips for Maximizing Aid
- Submit the FAFSA every year by the earliest deadline (usually March 1 for many states, but check your state’s deadline).
- Apply for at least 5–10 scholarships that match your profile, even if you think your chances are low.
- Write strong essays that highlight your unique story and achievements.
- Keep track of all deadlines using a spreadsheet or calendar.
Summary
In short, scholarships reward your achievements, while grants support your financial need. Both are valuable because they do not require repayment. To get the most aid, file the FAFSA early, apply for scholarships that fit you, and always report any outside awards to your college. With a little effort, you can reduce your college costs significantly.
Frequently Asked Questions
Can I get both a scholarship and a grant?
Yes, you can receive both at the same time, as long as your total aid does not exceed your cost of attendance.
Do grants need to be repaid?
No, grants are gift aid and do not need to be repaid, unless you withdraw early from school or fail to meet certain requirements.
Which is easier to get, a scholarship or a grant?
Grants are often easier to get because they are based on financial need, while scholarships can be more competitive because they depend on merit.
How do I apply for grants?
You apply for federal and state grants by completing the FAFSA, and your eligibility is determined automatically.
Do scholarships affect my financial aid package?
Yes, outside scholarships can reduce your loans or work-study, but they usually do not reduce your grants.
