When they enroll in a college or a university, a number of students look for help looking for financial assistance in terms of tuition, fees and other costs related to education. Although no repayment is required in these forms of assistance which falls under grants and scholarships, students can take loans. However, although they bear certain similarities, there are important distinctions between the two.
This guide focuses mostly on the major distinctions of grants from scholarships as well as the processes of allocation, eligibility and award processes.
What Are Scholarships?
Scholarship refers to the money awarded to students for different academic performances. Some are performance based like in academic excellence, sports or even in leadership and arts. But mostly there are scholarships that are provided based on need or on some specific factors different from personal qualities like the subject taken, ethnicity, or other social programs.
Important Features of Scholarships
Merit-Based: A majority of the scholarships are obtained as a reward for outstanding performance academically, in sports or art. In order to qualify for such awards students may be required to retain a certain academic performance level or achieve certain goals.
Complex Factors: Scholarships may be given on varied bases, such as:
Athletics- Perform some particular colleges sports and sprinters or strive for excellence in sports at the college level Athletics Scholarship: Certain majors such as STEM, business, and healthcare have some scholarships attached to them.
Demographic Factors- Scholarships for underrepresented groups, first-generation college students, women or other minority groups such.
Extracurricular Involvement- Students holding positions of prospective leadership or committing to community services, clubs and the organizations.
Competitive: Scholarships very particular also are competitive and scholarships often have their application processes that demand the resources of essays, and papers, letters of recommendation and at times, interviews are held.
Common Sources of Scholarships
Colleges and Universities: Numerous colleges have scholarship programmes approving enrolment of new and retired students who excel on the educational level, make use of or focus on some profession.
Private Organizations: Various education scholarship specifically is supported by exigent non-profit organizations, corporations and foundations.
Governmental to Students: Some public programs injections also provide scholarships to the students who are doing bridging course in areas that other program enrollment requirements do not meet or certain other criteria.
What are Grants?
Grants can be defined as monetary funds awarded or designated only for those whose families do not possess capacity to pay for school or further their studies. Similar to scholarships that mostly apply to merit based students; grants are most of the time need based which implies that the aid gradated students facing economic barriers. Grants are offered either by the federal or the state government for education purposes or by colleges or other private agencies.
Key Characteristics of Grants
Need Based: The factor of economic need is usually what sways the judgement of who gets grants. Documents such as the FAFCY and other related income records normally show and are used as the deciding eligibility of the applicant.
Less Competitive: Even though grants are financial aid based and more often than not seek to fund a certain income level and not scholarships, they tend to be less competitive than these scholarships.
Renewable: A number of grants can be renewed every year upon proving the financial need is still relevant and usually when the student is in good academic standing.
Common Examples of Grants
Federal Grants: The most common grant is of course for Pell which is given to undergraduate students who prove to be needing help on their FAFSA form.
State Grants: Other states also provide funding assistance to their residents who enroll in the states’ colleges often by way of grants which are ne ed-based and sometimes for certain programs.
Institutional Grants: Schools will offer grants based upon the students’ needs as with other institutional grants or any other factors they base the ‘interest’ on.
Private Grants: There are private institutions that award grants to students that apply for assistance on the basis of financial need, intended course of study or any other specific area.
Key Differences Between Grants and Scholarships
Chance to obtain the prize
Grants: Most of these types of grants are need-oriented. Most of the time it is poverty that will qualify one for this type of benefit.
Scholarships: Mostly on the other hand, awarded because of accomplishments or special talents although there are some qualifications based on financial needs. Scholarships could be awarded due to academic scores performed, sports played or artistic and demographics.
Source of Funding
Grants: These are typically resources that are given or awarded mostly by the government for either federal or state purposes, or by institutions. Most popular one would be the Pell Grant in which the funds come from the federal government of the USA.
Scholarships: The funds are raised from college institutions, private bodies, companies, charitable organizations, and individuals.
Application Process
Grants: It usually requires the filling of short financial aid forms or FAFSA other document in order to establish the financial need on grants. There is generally no requirement of such documents like essay or letters of recommendation when applying for a grant.
Scholarships: Most higher professionals scholarships application forms require supporting documents like essay problem solving exercises, recommendation letters, portfolio work, or interview. The routine can be established in a competitive environment addressing or being determined by notebook studies performance and non-academic operations.
Renewability
Grants: So long as the student has financial need and the student is making satisfactory progress toward the completion of a course, most of the grants are usually provided repeatedly.
Scholarships. Some conditions were made that determine whether the scholarship will be awarded again or that the base award will be retained, while some are awarded solely for one occasion.
Amount of Award
Grants: The standard amount awarded for grants is considered in reference to the student’s circumstances and the prevailing tuition fee. However, grants do cater for tuition, books and food or in some cases even a stipend.
Bursaries: These are monetary awards given to students to lessen the expense of study. This award is more favorable than tuition reimbursement in a sense that a person need not pay this money back and hence it is a risk free investment.
So it depends on the countries how the bursary in terms of assistance granted to the student shall be executed. Some cover the entire cost of the education, others may be only small, one time payment from $500 to several thousands of dollars award.
Pros and Cons of Grants and Scholarships
Grant
Advantages:
- Predominantly awarded for the low income category with most needy students supporting this category.
- A lot of these applications have financial aid forms such as the FAFSA.
- These are usually offered if there is a continuing need for it each year.
Disadvantages:
- Only award such to those who really cannot be able to afford studying.
- Some number of awards may be lower than the best full-tuition scholarship.
Scholarship
Advantages:
- To students with positive attributes, leadership, academic excellence or other parameters.
- On occasions these can be offered in large cash amounts with Fees for Further Training or even most expansion owners. And you can be awarded for achievements rather than such need.
Disadvantages:
- Most of the time the funding is based on strict competition and a tougher application process.
- Some students may face additional requirements, such as the need to keep a good academic standing or the completion of a high intensity involvement in specific activities.
Conclusion
Grants and scholarships serve the same purpose of helping students acquire higher education, but they differ in the alternatives to avail these financial aids and the specific requirements attached to them. Generally, grants are awarded on the basis of financial need while scholarships are awarded on the basis of various forms of excellence. Having these distinctions on the major types of financial aid will enable you know the better and reasonably cheaper ways of paying for your education.