20+ Difference between Grant and Scholarship

Grants and Scholarships are both types of financial aid given to people or organizations. Organizations or individuals typically receive grants to help fund certain activities, projects, or research across various industries.

Scholarships, in contrast, are mostly given to students to help them in their academic or research endeavors.

They are frequently determined by academic ability, talent, or particular standards like demography or community involvement.

Unlike grants, which may be given to various organizations, scholarships are primarily designed to aid students in their academic endeavors.

Scholarships are typically non-repayable financial prizes, whereas grants are frequently cash that needs to be handled and kept track of.

What Is the Difference Between A Grant And A Scholarship?

Usually given to people or organizations.Awarded primarily to youngsters.
Aimed at assisting initiatives, research, or projects.Intended to aid in efforts to further education or research.
Based on merit, necessity, or compatibility with the goal of the grantor.Based on exceptional abilities, talents, or grades.
Can be given to various organizations (including charities and enterprises).It may demand an application, academic credentials, or other requirements.
This may call for a thorough application or proposal process.It may demand an application, academic credentials, or other requirements.
This may call for a thorough application or proposal process.Typically, funding is used to pay for living expenses, books, or tuition.
Frequently required to control and account for the money.Generally, financial awards are non-repayable.

What Is Grant?

A grant is a monetary award or gift made by a company, foundation, government agency, or individual to fund a particular project, research, campaign, or person.

Grants are frequently non-repayable sums of money to assist beneficiaries in achieving a specific aim or goal. They are commonly given out based on merit, need, or compatibility with the goals or priorities of the grantor.

Nonprofit organizations, educational institutions, enterprises, people, and governmental organizations can all get grants.

They can help a variety of endeavors, including scientific research, neighborhood improvement plans, artistic endeavors, charitable causes, social programs, educational programs, and more.

The federal government, state governments, and institutions all hand out grants.

Key Difference: Grant

  • People may submit grant applications for financial assistance for several purposes, including advancing their education, completing a project, or establishing a business.
  • After a grant has been approved, very few more steps need to be taken with it.
  • Students who cannot attend college due to financial constraints may submit an application for a grant.
  • A grant might potentially be awarded to any student, irrespective of their current level of academic achievement.
  • Financial necessity is one of the factors examined when deciding who will get a grant. Scholarships are in no way comparable to this scenario.

What Is Scholarship?

A scholarship is a monetary reward or grant given to someone, usually a student, to assist with their academic or research goals.

Various organizations give scholarships, including universities, colleges, private groups, foundations, governmental organizations, and companies.

These organizations offer scholarships to acknowledge and support talented persons and advance learning and skill development.

Awarding scholarships based on uncommon skills is also possible. For instance, the Stuck at Prom scholarship contest awards $10,000 to the best-dressed and $10,000 to the best-dressed tuxedo.

Key Difference: Scholarship

  • Scholarships are only available to current students.
  • Most scholarships need a certain grade point average or another criterion to be fulfilled or maintained.
  • Scholarships may be given to deserving students who have excelled in their academic or athletic endeavors during their schooling.
  • Scholarships are most helpful to applicants considering furthering their education by enrolling in college.
  • A student may be awarded a scholarship for their academic achievement, participation in extracurricular activities, or membership in a particular club.

Pros and Cons of Grants

Pros of grants

  • Financial assistance without repayment: Grants provide students with financial aid that does not require repayment. This is a major advantage as it relieves students from the burden of accumulating debt while pursuing their education.

    Grants essentially act as “free money” that can be used to cover tuition fees, textbooks, housing, and other educational expenses.
  • Wide availability for needy students: Grants are often designed to assist students who demonstrate financial need. As a result, they are widely available to individuals from diverse economic backgrounds.

    Whether a student comes from a low-income family or faces financial hardships, grants offer an opportunity to access higher education and bridge the financial gap that might otherwise hinder their educational pursuits.

Cons of Grants

  • Limited funding options: While grants offer financial assistance, the availability of funds may be limited. This means that not all students who apply for grants will receive them.

    Due to the high demand and limited resources, the number of grants awarded can be insufficient to meet the needs of all eligible applicants.

    Students must be prepared to explore alternative funding sources or seek additional financial aid options if they do not secure a grant.
  • Eligibility requirements and competition: Grants often have specific eligibility criteria for students to qualify.

    These requirements may include factors such as financial need, academic performance, or chosen field of study.

    Additionally, since grants are competitive, many applicants may be vying for a limited number of grants.

    This competitive nature can make it challenging for some students to successfully secure a grant, even if they meet the eligibility criteria.

Pros and Cons of Scholarships

Pros of scholarships

  • Recognition of achievements: Scholarships are awarded based on various criteria, including academic excellence, athletic abilities, artistic talent, or community involvement.

    Students gain recognition for their achievements and dedication in a particular area by receiving a scholarship.

    This recognition boosts their self-esteem and enhances their resume, making them more competitive in their future academic and professional endeavors.
  • Opportunities for specialized fields: Scholarships often cater to specific fields of study or career paths.

    They provide students the means to pursue their passion in specialized areas such as STEM (Science, Technology, Engineering, and Mathematics), arts, humanities, or social sciences.

    Scholarships in these fields offer financial support and open doors to unique educational opportunities, internships, research projects, and networking prospects.

Cons of Scholarships

  • Limited availability for specific criteria: Scholarships may be available only to select students who meet specific criteria. These criteria can include factors such as academic achievements, ethnicity, geographic location, or specific extracurricular involvements.

    Consequently, some students may find it difficult to find scholarships that align with their qualifications or background, limiting their access to scholarship opportunities.
  • Stringent application processes: Scholarships often require applicants to undergo rigorous application procedures.

    This may involve submitting detailed essays, obtaining letters of recommendation, participating in interviews, or fulfilling additional requirements specific to the scholarship.

    The application process can be time-consuming, demanding, and highly competitive, burdening students already managing their academic responsibilities and other commitments.
Differences Between Grant And Scholarship


In conclusion, financial aid for students pursuing an education can be found through grants and scholarships.

While scholarships are frequently merit-based and given for academic or other achievements, grants are typically need-based and offered by organizations or institutions.

Grants and fellowships both lessen the cost of education, allowing students to concentrate on their studies and realize their objectives.

Explore The More Differences Between..?

Frequently Asked Questions (FAQs)

Q1. Do you make repayments on grants?

The fact that you won’t have to make any payments toward the money that you get as a grant makes it an excellent choice for financing your education.

A grant, as opposed to a federal student loan, is a source of free money; also, grants are often distributed based on one’s demonstrated financial need.

In addition, they may be granted based on the course, the school, the background, or the topic.

Q2. What do you hope to accomplish by being awarded a grant?

Your suggestions and undertakings may qualify for financial assistance from the government through a grant; this would help the government achieve its aims of enhancing public services and stimulating economic activity.

Grants provide financial assistance to various domestic assistance programs, including those essential for disaster relief and recovery and those at the cutting edge of scientific inquiry (CFDA).

Q3. What are some of the negative aspects associated with being awarded a grant?

Grants from the government may be able to offer an instant boost to finances, but they can only be considered as a short-term solution since they are unable to be sustained.

This suggests that you cannot depend on them to keep you afloat for lengthy periods of time and that you will need to find other forms of assistance.

Q4. Who is eligible to get scholarships?

Scholarships may only be awarded to students who have shown exceptional academic achievement. It is not worth your time to apply for a scholarship since a student will not earn enough money.

The process of applying for a scholarship may be time-consuming and requires you to adhere to many rules. There is only room for one scholarship application on your part.

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