Grant and scholarships are two different concepts that are frequently mixed together. Most scholarships are awarded based on merit. This implies that they are awarded to potential beneficiaries based on desired traits like physical prowess, academic success, or participation in a particular extracurricular activity. Scholarships may also be awarded based on certain characteristics, such as ancestry or membership in a particular group.
Gift aid comes in the form of both grants and scholarships. Gift aid is money that, unlike student employment and student loans, does not need to be earned or repaid.
Although the terms grant and scholarship are frequently used interchangeably, they have some key distinctions. Grants typically depend on a student’s financial situation, whereas scholarships typically depend on merit.
What is a grant?
The gap between the cost of attendance (COA) at the college and the estimated family contribution determines eligibility for a grant (EFC). Some awards, like the Federal Pell Grant, are completely determined by the EFC. There is frequently an income restriction to qualify for state programs like the Cal Grants and New York TAP Grants.
Grants are typically given out by colleges and universities, as well as by the federal and state governments.
The largest award program is the Federal Pell Grant. Nearly half of all awards come from colleges and universities, over a quarter are federal Pell Grants, and the remaining percentage is evenly split between state grant programs and military student help.
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Fill out the Free Application for Federal Student Aid (FAFSA) as soon as possible on or after October 1 at fafsa.ed.gov to submit a grant application.
What is a scholarship?
Scholarship eligibility is determined by merit. Scholarships that are given based on intellectual, artistic, or athletic ability are examples of merit scholarships. Scholarships can also be given out for talents that are odd, such crafting a duct tape prom costume. For instance, the Stuck at Prom scholarship competition offers $10,000 awards for the best dress and best tux, respectively.
Private organizations including foundations, philanthropists, unions, companies, professional membership associations, fraternal organizations, non-profit organizations, and religious institutions are frequently the sources of scholarships.
Based on the student’s high school grade point average (GPA), admissions test results, and class rank, a small number of colleges provide full-tuition academic scholarships.
Some scholarships resemble grants in some ways. For instance, to renew a need-based award, many grants require the student to maintain a minimum GPA.
Fellowships are a common name for scholarships given to graduate students.
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Millions of students receive private scholarships and fellowships worth roughly $6 billion annually. One in eight college students receives a scholarship, with the average amount being around $4,000.
Use our free Sallie Mae scholarship matching tool to submit an application for scholarships.
Did you realize that awards are subject to taxes? To determine the taxable portion of your scholarships and estimate your tax liability, use our scholarship tax calculator. While money spent on tuition and books may not be subject to taxes, money spent on daily living expenses is.
Why apply for grants and scholarships?
Grants and scholarships can be used as a complement to college funds and to lighten the financial and labor load of students. A dollar less will need to be borrowed for every dollar you win.
Differences between grants and scholarships
While scholarships are merit-based and provided to students based on their academic achievements, extracurricular activities, field of study, and other factors, grants are typically given based on financial need.
The purpose of grants is to correct an imbalance between an organization’s spending and its tax revenue. Grants may be requested by submitting a proposal, and after it has been approved, the donor must be updated. This assistance is not required to be paid back, making it a form of gratuity. They could differ in size.
A scholarship is a type of financial aid targeted specifically towards college-bound kids. It may cover all or a portion of a person’s living expenses as well as their tuition. Maintaining a specific GPA and enrolling in a specific number of credits during the first year of school are requirements for scholarships. Some scholarships are awarded based on the applicant’s field of study, while others are based on gender.
The primary distinction between grants and scholarships is that, in comparison to grants, scholarships have tougher selection criteria. The scholarship is also intended for college-bound students.
Summary Of Grants
1. Grants are sums of money given to people for a variety of purposes, such as business, projects, or education. Scholarships, however, are only provided to students.
2. Once a grant is authorized, there are hardly any conditions left to be fulfilled. Scholarships, on the other hand, have strict requirements, and the applicant must maintain a certain score.
3. Scholarships are awarded to students who excel in academics or sports, whereas grants are offered to people who are unable to pay for their education.
4.A scholarship is only granted to students who are explicitly entering college, although grants can be offered to students of any standard.
5. People receive grants based on their financial situation. Scholarships are an exception to this. Students that excel in particular majors, activities, affiliations, or interests frequently receive scholarships.
What is a scholarship?
Scholarships are a similar type of free money. In fact, aside from the name, it can occasionally be challenging to tell a grant from a scholarship. However, scholarships often tend to be awarded based on criteria other than financial need.
The source of each is where grants and scholarships diverge the most. Scholarships are much less likely to be provided by government agencies than grants. Instead, scholarship programs may be provided by schools, people, companies, families, associations, or a variety of other groups.
Are You Eligible For Scholarships?
Some scholarships are very specialized since they typically represent the fundamental beliefs or pursuits of the donor. For instance, some scholarships may be awarded based on academic performance and a specific GPA, while others may be awarded based on athletic prowess and excellence in particular sports. You can locate scholarships based on your region, race, major, extracurricular activities, interests, way of life, etc. You name it; there’s certainly a requirement for a scholarship someplace.
It may surprise you to learn that there are scholarships available for writing on fire sprinkler safety and committing random acts of kindness. There is, therefore, undoubtedly a scholarship opportunity available for you; all you need to do is locate it.
Finding And Applying For Scholarships?
Where are scholarships available? You can be automatically eligible for several scholarships granted by the financial aid office of the school you intend to attend if you submit the FAFSA.
Additionally, it’s a smart idea to stop by the guidance office of your high school on a regular basis to inquire about scholarships, particularly those provided by regional businesses. Check with any groups or organizations you belong to, the place of employment of your parents or guardians, and nearby nonprofits as further choices.