Learn About Scholarships and Grants for Education

Understanding the Difference Between Scholarships and Grants

When searching for money to pay for education, two terms come up often: scholarships and grants. While both can help reduce what you pay for school, they work differently and have different requirements.

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Scholarships are typically merit-based, meaning they reward academic achievement, athletic ability, artistic talent, community service, or other accomplishments. A student with a 3.8 grade point average might receive a scholarship from a college or private organization. Some scholarships also consider financial need, but many do not. The key feature of most scholarships is that they recognize something the student has already done or demonstrated. Scholarships can come from colleges, universities, private organizations, corporations, foundations, and community groups.

Grants, on the other hand, are almost always need-based. They provide money to students who demonstrate financial need—meaning their family income falls below certain thresholds or they lack sufficient resources to pay for education. Federal Pell Grants, for example, serve low and moderate-income students pursuing undergraduate degrees. Unlike scholarships that reward achievement, grants exist to remove financial barriers to education. Most grants come from federal or state governments, though some private foundations also offer them.

One crucial difference: scholarships typically do not need to be repaid, and neither do grants. This separates them from student loans, which must be paid back with interest. Understanding this distinction matters because it shapes how you search for funding and what you should prioritize based on your circumstances.

Practical takeaway: Create two lists as you research. One for scholarships matching your talents, achievements, or characteristics. Another for grants based on your financial situation. This approach ensures you explore both funding paths thoroughly.

Types of Scholarships Available to Students

The scholarship landscape is broader than many students realize. Scholarships exist for nearly every demographic, interest, and background. Understanding the main categories helps you identify which programs might align with your profile.

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Academic scholarships reward high school grades, standardized test scores, and overall academic performance. Many four-year universities offer these directly to incoming students with strong records. For instance, a state university might offer full-tuition scholarships to students with a 3.9 GPA and composite SAT score above 1470. Community colleges also offer academic scholarships, often with lower grade requirements. These scholarships encourage strong students to attend particular schools and often come with renewable requirements—you must maintain a certain GPA to keep receiving funds.

Athletic scholarships go to students who play sports at competitive levels. The NCAA oversees most athletic scholarships at four-year universities, where Division I programs offer full rides in revenue sports like football and basketball, while other sports typically offer partial scholarships split among multiple athletes. Even less well-known sports like rowing, fencing, and volleyball offer substantial athletic scholarships. Community colleges also provide athletic scholarships through the NJCAA (National Junior College Athletic Association).

Talent-based scholarships recognize abilities in arts, music, debate, theater, and other performance areas. A student who plays violin at an advanced level might receive a music scholarship. A young playwright or visual artist may find scholarships through arts organizations. These scholarships often require auditions or portfolio submissions but do not always require exceptional academic grades.

Demographic-based scholarships target specific populations. Examples include scholarships for first-generation college students (whose parents did not graduate from four-year colleges), students from particular ethnic or racial backgrounds, LGBTQ+ students, students with disabilities, and students from rural communities. Organizations recognizing these groups created these scholarships to increase diversity and opportunity in higher education. For example, the American Association of University Women offers scholarships specifically for women returning to education after a time away.

Career-focused scholarships support students planning specific professions. Nursing scholarships encourage healthcare workforce growth. Teaching scholarships help students pursue education careers in high-need subjects like math and science. Agricultural scholarships support students planning farming, veterinary medicine, or related fields. Many of these come from professional associations or employers seeking future workers.

Military-connected scholarships serve active-duty service members, veterans, and military family members. The Post-9/11 GI Bill is the largest federal program, but many private scholarships also support this population. For example, the Fisher House Foundation offers scholarships to military families, and many states have additional military education benefits.

Practical takeaway: List your characteristics, talents, and circumstances. Include academic performance, sports or arts involvement, family background, career interests, and any military connection. This inventory reveals which scholarship categories you should research first.

How Federal Grants Work and Who May Receive Them

Federal grants represent the largest source of grant funding for students. These programs, funded by tax dollars, aim to make higher education attainable regardless of income. Understanding how federal grants work clarifies what money might be available to you.

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The Federal Pell Grant is the foundation of federal grant aid. Established in 1972, it serves students from low and moderate-income families pursuing undergraduate degrees. For the 2023-24 academic year, the maximum Pell Grant was $7,395, though individual awards vary based on factors like family income, family size, number of family members in college, and cost of attendance at the school you plan to attend. A student whose family earns $30,000 annually might receive a larger Pell Grant than one whose family earns $60,000. The federal government calculates a number called the Expected Family Contribution (EFC), now called the Student Aid Index (SAI), which determines how much Pell Grant funding a student receives.

Federal Supplemental Educational Opportunity Grants (FSEOG) provide additional aid to Pell Grant recipients with exceptional financial need. These grants, typically ranging from $100 to $4,000 per year, are distributed by colleges directly. Fewer students receive FSEOG because funding is limited, and schools prioritize students with the lowest family incomes.

TEACH Grants support students planning careers as teachers in high-need subjects or high-poverty schools. Unlike most grants, TEACH Grants come with a service obligation—you must teach in a qualifying school for at least four years after graduation. If you do not meet this requirement, the grant converts to a loan you must repay with interest.

To access federal grants, you must complete the Free Application for Federal Student Aid, known as the FAFSA. This form collects information about your family's income, assets, and household size. The FAFSA opens October 1st each year for the following academic year. For example, in October 2023, the 2024-25 FAFSA became available. This form is truly free—no service should charge you to complete it. Completing the FAFSA is the gateway to federal aid, making it essential even if you think you might not qualify.

Federal grants have few restrictions compared to scholarships. You may attend any accredited college or university in the United States. You may change your major without affecting your grant. You may attend part-time or full-time. The main requirement is that you maintain satisfactory academic progress, typically meaning you pass your courses and work toward degree completion at a reasonable pace.

Practical takeaway: Visit FAFSA.gov and complete the application even if you are uncertain about financial need. The form determines what federal aid you may receive and takes roughly 30 minutes to complete with financial documents ready.

State and Institutional Grant Programs

Beyond federal programs, states and individual colleges offer their own grant funding. These programs often serve students ineligible for federal aid or provide additional support. Learning about these options expands the total funding picture.

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State grant programs vary significantly by state but generally serve residents attending in-state schools. New York's Tuition Assistance Program (TAP) provides grants to low and moderate-income New York residents attending approved colleges in New York. California's Cal Grant program serves similar purposes for California residents. Most states with strong grant programs require state residents to attend in-state institutions, though some allow students to use grants at private colleges within the state or at out-of-state schools under specific circumstances.

State grants typically require you to complete the FAFSA and sometimes an additional state financial aid form. Many states use your federal financial information to determine state grant awards. Awards vary from a few hundred dollars to over $10,000 per year depending on your state, financial need, and the school you attend. For example, a California resident attending a UC school with significant need might receive several thousand dollars in Cal Grant funding, while a student with minimal need receives