Paying for college can be expensive, and students often look for financial aid that can reduce the amount they have to pay themselves.
Two of the most common types of financial assistance are scholarships and grants.
You may have heard these terms used interchangeably, but they are not always exactly the same. Both can help students pay for education and generally do not have to be repaid when their conditions are met. However, they can differ in who provides them, why they are awarded, eligibility requirements, application processes, and selection criteria.
Understanding the difference between scholarships and grants can help you create a more effective strategy for paying for college.
In this guide, we explain scholarships vs grants, how each works, who can qualify, where to find them, and whether you should apply for both.
What Is a Scholarship?
A scholarship is financial assistance awarded to a student to help pay for education.
Scholarships can come from:
- Colleges and universities
- Private foundations
- Nonprofit organizations
- Corporations
- Professional associations
- Community organizations
- Religious or cultural organizations
- Individuals or private donors
- Government agencies
Scholarships may be awarded based on academic achievement, athletic ability, leadership, community service, artistic talent, financial need, career goals, field of study, personal background, or other criteria.
For example, a university might offer a scholarship to an academically outstanding student, while a private organization might provide a scholarship to students pursuing a particular profession.
What Is a Grant?
A grant is financial assistance provided to help fund education or another qualifying purpose.
Education grants can come from:
- Federal governments
- State governments
- Colleges and universities
- Nonprofit organizations
- Foundations
- Research organizations
- Private institutions
Many education grants are designed to address financial need, although not all grants are strictly need-based.
For example, the Federal Pell Grant is a major U.S. federal grant for eligible students who demonstrate financial need and meet the program’s requirements.
Other grants may support specific activities, fields of study, research projects, teaching careers, or other educational objectives.
Scholarships vs Grants: The Main Difference
The simplest way to understand the difference is:
Grants are often associated with financial need or a specific educational purpose, while scholarships are often associated with merit, achievement, talent, or a particular characteristic—but there is significant overlap.
The distinction is not absolute.
Some scholarships are need-based, and some grants are merit-based or tied to specific requirements.
The organization providing the funding ultimately determines the eligibility criteria and conditions.
Scholarships vs Grants Comparison
| Feature | Scholarships | Grants |
|---|---|---|
| Usually repaid? | Generally no | Generally no |
| Common basis | Merit, talent, achievement, need | Financial need or specific purpose |
| Providers | Universities, nonprofits, companies, foundations | Government, schools, nonprofits, foundations |
| FAFSA required? | Sometimes | Often for federal grants |
| Academic requirements | May apply | May or may not apply |
| Financial need | Sometimes required | Frequently important |
| Competitive? | Often | Depends on program |
| Application required? | Usually | Depends on program |
| Can international students qualify? | Many programs | Some programs |
| Can graduate students qualify? | Yes | Yes |
The exact rules vary by program.
Do Scholarships and Grants Have to Be Repaid?
Generally, scholarships and grants do not need to be repaid as long as you satisfy the conditions of the award.
However, there can be exceptions.
A student may have to repay some funding if they:
- Withdraw from school
- Stop meeting enrollment requirements
- Fail to maintain required academic progress
- Receive funds they were not eligible to receive
- Fail to satisfy a service obligation
- Use funds in violation of the award’s terms
For example, some grants have service requirements. The TEACH Grant can be converted into a Direct Unsubsidized Loan if a recipient does not fulfill the required teaching service obligations. (studentaid.gov)
Always read the terms and conditions before accepting an award.
Are Grants Better Than Scholarships?
Not necessarily.
Both can reduce the cost of education without creating traditional student-loan debt.
The more important question is:
Which funding opportunities are you eligible for?
For example, a student with significant financial need may have strong opportunities for need-based grants, while a student with outstanding academic achievements may qualify for competitive merit scholarships.
Many students can benefit from both.
Types of Scholarships
There are several major categories of scholarships.
Merit-Based Scholarships
These scholarships are awarded based on achievements such as:
- High grades
- Academic awards
- Test performance
- Leadership
- Research
- Extracurricular activities
Some universities automatically consider applicants for merit scholarships, while others require separate applications.
Need-Based Scholarships
Need-based scholarships consider the student’s financial circumstances.
The organization may evaluate:
- Family income
- Household size
- Cost of attendance
- Financial circumstances
- Other available resources
Some need-based scholarships may use FAFSA information, while private organizations may have their own financial aid applications.
Athletic Scholarships
Colleges and universities may provide athletic scholarships to eligible student-athletes.
These can be available for sports such as:
- Football
- Basketball
- Soccer
- Tennis
- Swimming
- Track and field
- Volleyball
- Baseball
- Softball
Eligibility and award structures vary by institution and athletic organization.
Community Service Scholarships
Some organizations award scholarships to students who have demonstrated meaningful community involvement.
Examples include:
- Volunteering
- Nonprofit work
- Community projects
- Mentoring
- Leadership initiatives
Field-of-Study Scholarships
Some scholarships are specifically designed for students studying particular subjects.
Examples include scholarships for:
- Nursing
- Engineering
- Computer science
- Data science
- Education
- Business
- Public health
- Law
- Environmental science
Searching by your major can uncover opportunities that broad scholarship searches may miss.
Scholarships for Specific Groups
Some scholarships are designed for students who meet particular eligibility criteria.
These may target:
- International students
- Veterans
- First-generation college students
- Adult learners
- Students from specific countries
- Students from particular communities
- Students pursuing specific careers
Always check the eligibility requirements carefully.
Types of Education Grants
Federal Grants
The U.S. federal government provides grants to eligible students through Federal Student Aid.
The Federal Pell Grant is one of the most well-known examples.
For the 2026–27 award year, the maximum Pell Grant award is $7,395, although the actual amount depends on the student’s circumstances and eligibility. (studentaid.gov)
State Grants
Many state governments provide grants to eligible residents attending qualifying institutions.
Requirements vary by state.
Some programs may consider:
- Residency
- Financial need
- Academic performance
- Enrollment
- Degree program
- FAFSA information
Institutional Grants
Colleges and universities may provide grants directly to students.
Institutional grants may be based on:
- Financial need
- Academic achievement
- Enrollment
- Program of study
- Special circumstances
Contact your school’s financial aid office to learn what is available.
Research Grants
Graduate students and researchers may qualify for grants that support academic or scientific research.
These may help cover:
- Research expenses
- Equipment
- Data collection
- Travel
- Project costs
- Stipends
Need-Based vs Merit-Based Financial Aid
One of the most important differences students should understand is need-based versus merit-based funding.
Need-Based Aid
Need-based aid is generally based on a student’s financial circumstances.
Examples can include:
- Federal Pell Grants
- Certain state grants
- Need-based institutional grants
- Need-based scholarships
Merit-Based Aid
Merit-based funding is awarded based on accomplishments or qualities such as:
- Academic performance
- Leadership
- Athletics
- Artistic ability
- Research
- Community service
Examples can include:
- Academic scholarships
- Athletic scholarships
- Leadership scholarships
- Research scholarships
However, some programs combine both need and merit considerations.
Can You Get Both Scholarships and Grants?
Yes.
Students can often receive both scholarships and grants, provided they remain eligible and the combined financial aid does not exceed applicable limits or create other financial aid issues.
For example, a student might receive:
- A Federal Pell Grant
- A state grant
- A university scholarship
- A private scholarship
- A departmental award
The exact combination depends on the student’s eligibility, school, and applicable financial aid rules.
Can International Students Get Scholarships and Grants?
International students can qualify for many scholarships and some grants, particularly through universities, private organizations, foundations, international programs, and home-country governments.
However, international students generally cannot assume that U.S. federal student grants are available to them.
Many federal student aid programs have citizenship or eligible noncitizen requirements.
International students should therefore focus on funding opportunities that explicitly state that international students are eligible.
Potential sources include:
- University scholarships
- Merit scholarships
- Private foundations
- Fulbright programs
- Home-country scholarships
- Graduate fellowships
- Research assistantships
- Teaching assistantships
- Departmental funding
Which Is Easier to Get: a Grant or Scholarship?
There is no universal answer.
The difficulty depends on the specific program.
A large national scholarship may receive thousands of applications, while a smaller local grant may have a much smaller applicant pool.
Similarly, some grants have strict financial eligibility requirements that limit the number of qualified applicants.
Instead of asking whether grants or scholarships are easier to get, ask:
Which opportunities match my qualifications most closely?
A strong applicant should search for both.
How to Apply for Scholarships
The application process varies, but commonly involves:
1. Find Relevant Scholarships
Search by:
- Major
- Degree level
- Country
- State
- Academic performance
- Career
- Financial need
- Background
- Extracurricular activities
2. Check Eligibility
Read the requirements carefully before applying.
3. Gather Documents
You may need:
- Transcript
- Résumé
- Personal statement
- Recommendation letters
- Financial information
- Proof of enrollment
- Portfolio
- Test scores
4. Write a Strong Essay
Explain your background, goals, achievements, and why the scholarship matters to you.
5. Submit Before the Deadline
Never assume that an application submitted late will be accepted.
6. Track Your Applications
Keep a spreadsheet with:
- Scholarship name
- Amount
- Deadline
- Requirements
- Submission date
- Application status
How to Apply for Grants
For U.S. students seeking federal financial aid, completing the FAFSA is often the first step.
The FAFSA can be used to determine eligibility for federal grants and other financial aid.
Students should also:
- Research state grants.
- Contact their college financial aid office.
- Search institutional grants.
- Research private grants.
- Check program-specific funding.
- Review all eligibility requirements.
- Submit required documentation.
- Monitor application status.
How to Find Scholarships and Grants
A good funding strategy uses multiple sources.
Start With Your College
Your university may offer:
- Scholarships
- Grants
- Fellowships
- Departmental awards
- Emergency assistance
- Work-study
Search Government Programs
Research federal and state financial aid programs.
Search Private Organizations
Look for foundations, nonprofits, companies, and professional associations.
Search by Major
Instead of searching only for “college scholarships,” search for:
“computer science scholarships”
“nursing scholarships”
“engineering grants”
“data science scholarships”
“international student scholarships USA”
Search by Location
Try searches such as:
“college scholarships in Texas”
“education grants for California students”
“scholarships for Virginia college students.”
Common Mistakes When Applying for Scholarships and Grants
Applying Without Checking Eligibility
Do not waste time applying for opportunities that clearly exclude you.
Missing Deadlines
Use a calendar to track application deadlines.
Submitting Generic Essays
Customize your application to the organization and its mission.
Ignoring Small Awards
Several $500 or $1,000 awards can add up.
Applying Only Once
Funding opportunities appear throughout the year.
Continue searching even after receiving an award.
Failing to Read the Fine Print
Understand whether the funding is renewable, what expenses it covers, and whether there are academic or service requirements.
Scholarships vs Grants vs Loans
Students should also understand how scholarships and grants compare with student loans.
| Funding Type | Usually Repaid? | Common Criteria |
| Scholarship | No | Merit, need, talent, achievement |
| Grant | No | Need, program, research, specific purpose |
| Student Loan | Yes | Financial aid eligibility, credit or other requirements |
| Work-Study | No repayment, but requires work | Financial need and employment eligibility |
The biggest financial difference is that loans create debt, while scholarships and grants generally do not need to be repaid when their requirements are satisfied.
What Happens If You Receive More Financial Aid Than You Need?
Receiving multiple forms of financial aid does not always mean you can keep unlimited amounts of funding.
Your total financial aid can be subject to applicable rules and your school’s cost of attendance.
If you receive additional scholarships or grants after your financial aid package has already been determined, notify your financial aid office.
Your school may need to adjust parts of your financial aid package depending on the circumstances.
Frequently Asked Questions
What is the main difference between a scholarship and a grant?
The terms overlap, but scholarships are often awarded based on merit, talent, achievement, or specific characteristics, while grants are frequently based on financial need or a particular educational purpose.
Are grants and scholarships free money?
Generally, yes, in the sense that they usually do not need to be repaid when their conditions are met. However, some awards can require repayment if eligibility requirements or service obligations are not satisfied.
Is a Pell Grant a scholarship?
No. A Pell Grant is a federal grant administered through the U.S. Department of Education’s Federal Student Aid system.
Can I get a scholarship and a Pell Grant?
Potentially, yes. Eligible students may receive multiple forms of financial aid, subject to applicable rules and their school’s financial aid package.
Which is better, a grant or scholarship?
Neither is automatically better. Both can reduce education costs without creating traditional student-loan debt. The best option depends on what you qualify for and the terms of the award.
Do scholarships require FAFSA?
Some scholarships do, while others do not. Many private scholarships have their own application processes.
Do grants require FAFSA?
Many U.S. federal student grants use FAFSA information to determine eligibility. State and institutional grant requirements vary.
Can graduate students get grants and scholarships?
Yes. Graduate students can find fellowships, scholarships, research grants, assistantships, and institutional funding.
Can international students receive scholarships?
Yes. Many universities and private organizations offer scholarships specifically to international students. However, eligibility varies considerably.
Final Thoughts: Should You Apply for Grants or Scholarships?
The answer is simple: apply for both whenever you are eligible.
There is no reason to limit your education funding search to one category.
A student may qualify for a combination of:
- Federal grants
- State grants
- University grants
- Merit scholarships
- Need-based scholarships
- Private scholarships
- Departmental scholarships
- Research fellowships
- Employer-sponsored education benefits
The most effective approach is to start early, understand your eligibility, search broadly, and apply consistently.
Remember that the largest award is not always the best opportunity. A smaller scholarship with fewer applicants can sometimes be more attainable than a highly competitive national award.
Scholarship and Grant Application Checklist
- Complete the FAFSA if you are eligible.
- Research federal grants.
- Research state grants.
- Check your university’s scholarships and grants.
- Search for scholarships related to your major.
- Search private foundations and nonprofit organizations.
- Check eligibility before applying.
- Prepare your résumé and academic transcripts.
- Request recommendation letters early.
- Write customized scholarship essays.
- Track application deadlines.
- Apply to multiple opportunities.
- Read the terms of every award carefully.
Bottom line: scholarships and grants are both valuable sources of education funding. Rather than choosing between them, build a strategy that combines every legitimate opportunity for which you qualify. The more thoroughly you research and apply, the more opportunities you create to reduce the cost of your educat