College Grants vs. Scholarships: What’s the Difference?

Financial aid guidance is like having to learn a new language at times. To be familiar with these terms will surely be a great advantage and they are specifically grants and scholarships. While both are often called 'gift aid' as they are non-repayable (unlike loans), they each have different characteristics and requirements. Knowing the difference exactly can make your search more directed and hence more effective.

The Core Features

The core difference lies in the reason behind the award of the money.

• Grants are awarded primarily on the basis of financial need. The purpose of grants is to make up for the difference between what your family is able to contribute and the overall cost of studying. A grant's main concern is the question: Does this student need the money for college education?

• Scholarships are awarded mainly on the basis of merit or certain criteria. Financial need might sometimes play a role, but scholarships are mainly for students who have achieved, who are talented, or who have some connection. The central issue is: "Has this student earned the money through achievement or does he/she meet a certain profile?"

A Closer Look at Grants

• Grants are the primary source of financial aid based on need.

• Main Source: Governments, both federal and state, as well as colleges and universities.

• Typical Requirements: You must show financial need, which is determined by your FAFSA (Free Application for Federal Student Aid) results. Your Expected Family Contribution (EFC), which is now referred to as the Student Aid Index (SAI), is essential.

Common Examples are:

• Federal Pell Grant: This is the largest federal grant program for undergraduate students who have extreme financial need.

• Federal Supplemental Educational Opportunity Grant (FSEOG): For undergraduates with the largest financial need; coordinated by the financial aid office of the college.

• State Grants: These are similar to Cal Grant in California or TAP in New York and are usually based on both need and merit.

• Institutional Grants: These are need-based awards given directly by the college from its own funds.

A Closer Look at Scholarships

• Scholarships acknowledge and support your efforts, financial situation, or hobbies.

• Principal Providers: Universities, private institutions, non-governmental organizations, local groups, and businesses.

• Regularly Needed: Standards differ a lot and can cover:

• Academic Skill: Very good GPA, grades, rankings in class.

• Gifts: Sports, drama, painting, music, writing, public speaking.

• Age group or Association: Major, nationality, charity work, employer's/parent's employer's name, military, club membership.

• Competitions: Writing, art, science projects, and other competitions.

The following examples can be mentioned:

• Institutional Merit Scholarships: Grants provided by schools to encourage the brightest students.

• Olympic or Sports scholarships: given by academic institutions to promising athletes (NCAA Divisions I & II).

• National Merit scholarship: Students are chosen based on their PSAT/NMSQT scores.

• Dozens of private scholarships from groups like Rotary, Coca-Cola, etc. and so on.

Key Similarities

1. No Repayment: This is the most important shared feature. Both are free money.

2. Application Required: You must actively apply, though the process differs. Grants primarily require the FAFSA (and sometimes the CSS Profile for colleges). Scholarships have separate, individual applications.

3. Renewability: Both can be for one year or renewable. Always check the terms.

4. The Line Can Blur: Some awards are hybrids. For instance, many state and institutional grants require both financial need and a minimum academic standard. A "need-based scholarship" is essentially a grant in spirit.

Practical Checklist: How to Get Them

For GRANTS it is required to:

1. Complete the FAFSA as soon as it opens (on October 1st). This is a must-do.

2. Submit financial aid forms specific to the state or college (like the CSS Profile) in case you need them.

3. Meet all deadlines. It is often the case that the first applicants get the grant for need-based aid.

For SCHOLARSHIPS it is necessary to:

1. Start searching right away even if it is the junior year of high school.

2. Make use of free and trustworthy search engines (Fastweb, Cappex, Scholarships.com).

3. Apply for local scholarships: Community foundations, employers of your parents, and local organizations usually experience less competition.

4. Utilize your college: Once you are admitted, browse the financial aid section of the college's website for internal scholarship applications.

5. Stay organized, and write true and captivating essays. Customize each application.

In conclusion, grants tackle your monetary needs, whereas scholarships appreciate your personal narrative and accomplishments. 

If you want to get the most out of your financial aid, you have to take both roads. To begin with, always submit the FAFSA to reveal your eligibility for grants and federal loans. After that, keep on searching for scholarships that fit your specific profile and apply for them. Working together, they can greatly lessen the impact of the costs of college on you.