Grant vs. Scholarship — What's the Difference?

A grant is a sum of money provided to individuals or organizations for a specific purpose, such as research, business development, or financial assistance. Unlike loans, grants do not have to be repaid. They might be allocated based on financial need or to encourage specific activities or outcomes. In contrast, a scholarship is a financial award given to students to help fund their education. These are often based on academic achievements, talents, or other criteria set by the awarding body.

When considering higher education financing, grants, often stemming from governmental sources, assist students based on their financial situation. Scholarships, however, frequently reward students for their academic or extracurricular accomplishments and can be provided by schools, private organizations, or individuals.

Although both grants and scholarships provide financial assistance without the need for repayment, the eligibility criteria can vary significantly. For a grant, eligibility might hinge on the nature of a project or an individual's financial circumstances. Scholarships typically rely on student performance or the fulfillment of certain conditions.

Notably, while the term "grant" is broad and can be applied in various sectors outside of education, "scholarship" is almost exclusively tied to the educational domain. For instance, a researcher might receive a grant for scientific exploration, whereas a high school student might receive a scholarship for college based on outstanding academic achievements.