People are frequently perplexed by the terms “scholarships” and “grants.” Both expressions refer to money that does not have to be repaid, and they are frequently used interchangeably. There are minor and subtle distinctions, though, and it’s important to understand them.
The federal government, for example, awards grants for a wide range of reasons. Many of the funds are used to support scientific research and studies.
An application, scholarship essay, answers to questions, and an interview with a scholarship committee may be required for some scholarships. A particular GPA, strong exam scores, and class rank may be required. If you receive a scholarship, you may be required to maintain your GPA in order to continue receiving funds. Scholarships are offered to students who have the finest academic or athletic records, whereas grants are given to all students who qualify based on their family’s earnings.
Grants are given for studies in these categories;
- development of environmentally sensitive new products,
- training for people who have lost their jobs, cultural programs,
- disaster prevention,
- transportation and much more.
Grants for education, specifically individual education grants, are the category we’re interested in. Education grants are also given out by the government to municipalities and regional governments for educational development, mainly for new community college programs.
Scholarships vs. Grants: What’s the Difference?
Grants for individual education differ from scholarships in that they are based on need rather than merit. Both, however, refer to funds set aside for college study.
The criteria and commitments that come with grants and scholarships are another distinction. The standards for scholarships might be significantly more stringent, and the application procedure can be far more competitive.
A third distinction is that scholarships are always offered for educational purposes, whereas grants are given for a variety of reasons, some of which are educational.
Nexus Between Grants And Scholarships
Because grants and scholarships are so closely related, they can be used interchangeably. Not all grants are scholarships, and not all scholarships are grants.
While the distinction between the two may still be perplexing, keep this in mind. If you’re looking for money to assist pay for college, concentrate your search on scholarships. If you need money for a cause that will benefit not only you but also your community, such as starting a small business, you should look for grants from the federal or state governments, foundations, organizations, corporations, or other sources.
Why Are Grants Awarded?
Individual education grants are provided by the federal and state governments, but they are typically based on financial need. Some scholarships are offered based on financial need, but the majority are given for academic, athletic, or other accomplishments such as community service, musical talent, performing arts, engineering expertise, writing talent, or pursuing specific academic subjects or occupations.
Reasons For Awarding Scholarships
- Scholarships may be awarded based on factors such as ethnicity, heritage, minority status, gender, or height.
- Majority of scholarships are awarded for academic, athletic, or other accomplishments .
- Scholarships might be given for all four years of college or just one.
Maintaining Grant Eligibility
The prerequisites for continuing to be eligible for a grant differ by program. Please check the page for your specific award to see if you fulfill the conditions for continuing to be eligible for that program.
When You Might Need to Pay Back a Grant
Here are some reasons why you might have to repay a federal grant in full or in part:
- You dropped out of the program for which the grant was awarded early.
- Because of a change in your enrollment status, you are no longer eligible for your award (for instance, if you switch from full-time enrollment to part-time, your grant amount will be reduced).
- You were awarded scholarships or grants from outside sources that decreased your need for student aid.
- You were awarded a TEACH Grant, but you did not fulfill the terms of your service obligation.
Repayment of Grants
If you have to repay a portion of your grant, your school will notify you. After that, you’ll have 45 days to pay back that amount of the grant in full or come up with a good repayment plan.
The school may assign the debt for collection or hold the debt and allow you to make payments directly to the school if you enter into a satisfactory repayment arrangement.
You will lose your eligibility for federal student aid if you do not take one of the alternatives listed above.
Summary – Scholarships And Grants
If you’re a student about to enter college, you should apply for every grant and scholarship that you could be eligible for. You’ll be astonished at how much money you can contribute toward the expense of your education. Notable organisations like DAAD etc are known for granting scholarships and aids to deserving students.
To summarize, while grants and scholarships are very similar, there are some variances. Both can provide non-repayable funds for higher education, making these types of financial help extremely popular and competitive, at least for scholarships.
You may want to explore trending scholarships open for application
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