The Education Blog
Understanding the Difference Between Scholarships and Grants
Not All Free Money Is the Same
When you start exploring how to pay for university, you’ll quickly come across two promising terms: scholarships and grants. They both sound great. They both involve money you don’t have to repay. But they’re not quite the same thing.
Knowing the difference between these two types of student financial aid can help you apply more effectively and make informed choices about funding your education.
In this guide, we’ll break down scholarships vs grants, explore who offers them, what they’re based on, and how you can boost your chances of receiving one (or both). Along the way, we’ll share real examples and practical tips to help you navigate the funding maze with confidence.
What Are Scholarships?
Definition:
Scholarships are financial awards given to students to support their education, often based on merit, talent, or specific criteria.
Key Features:
- Do not require repayment
- Often competitive and selective
- May be one-time or renewable each year
Common Types of Scholarships:
- Merit-Based Scholarships: Awarded for academic excellence or exceptional achievement
- Athletic Scholarships: Offered to students with talent in sports
- Subject-Specific Scholarships: Linked to areas like STEM, arts, or education
- Identity-Based Scholarships: For underrepresented groups (e.g. women in tech, first-generation students)
Who Offers Scholarships?
- Universities and colleges
- Governments and embassies
- Private companies and foundations
- Professional organisations
Example: The Rhodes Scholarship pays full tuition and living expenses for postgraduate study at the University of Oxford. It is awarded based on academic excellence, leadership, and public service.
What Are Grants?
Definition:
Grants are financial awards given to students, typically based on financial need rather than merit or achievement.
Key Features:
- Do not require repayment
- Primarily need-based
- Eligibility depends on financial circumstances
Common Types of Grants:
- Government Grants: Such as the UK’s Maintenance Grant (replaced by a loan system in some regions) or the U.S. Pell Grant
- Institutional Grants: Provided directly by universities to support low-income students
- Nonprofit Grants: From charities or NGOs for disadvantaged groups
Who Offers Grants?
- National and local governments
- University financial aid offices
- NGOs and community organisations
Example: The Pell Grant helps undergraduate students in the United States pay for college based on demonstrated financial need. It doesn’t require academic excellence to qualify.
Scholarships vs Grants: Side-by-Side Comparison
| Feature | Scholarships | Grants |
| Based on | Merit, talent, and specific criteria | Financial need |
| Application process | Often includes essays, CVs, and interviews | Based on income or financial data |
| Offered by | Universities, companies, foundations | Governments, universities, NGOs |
| Repayment required | No | No |
| Renewal conditions | May require maintaining grades | May be annual and reassessed yearly |
| Selectivity | Can be highly competitive | Based on eligibility, not competition |
Can You Get Both a Scholarship and a Grant?
Yes! In fact, many students receive a combination of scholarships and grants. For example, you might qualify for a need-based grant through your government and also receive a merit-based scholarship from your university.
Just be sure to check the terms. Some funding sources may adjust the amount if you receive multiple awards, while others may let you combine them fully.
Which Is Better for You?
It depends on your background, strengths, and financial needs.
Choose scholarships if you:
- Have strong academic or extracurricular achievements
- Can write compelling personal statements
- Are applying to programmes that offer merit-based awards
Look for grants if you:
- Come from a low-income household
- Are applying through the national student finance systems
- Need support for basic expenses like tuition or housing
If you’re unsure where you stand, consider taking a blended approach. Many students underestimate themselves, thinking they’re not “good enough” for scholarships, or assume grants are only for those in extreme financial hardship. In reality, eligibility varies widely. Even a modest extracurricular record or a strong personal story can make a big impression in a scholarship essay. Similarly, grants often consider family income, dependents, or regional factors. Don’t disqualify yourself before you’ve even applied — assess each opportunity on its own terms.
Common Mistakes Students Make When Applying for Scholarships or Grants
1. Missing the deadline
Set calendar reminders and apply early.
2. Ignoring eligibility criteria
Don’t waste time on awards you don’t qualify for.
3. Writing generic essays
Tailor your application to each opportunity.
4. Not submitting complete documentation
Double-check requirements and keep digital copies.
5. Assuming they’ll get one without trying
Scholarships and grants don’t find you — you have to find them and apply.
Real Story: Samira’s Journey
Samira, a student from Kenya, wanted to study public health in the UK. Her family couldn’t afford the fees. She applied for the Commonwealth Shared Scholarship (a full scholarship) and also received a travel grant from a local NGO.
“Without both the scholarship and the grant, I wouldn’t have made it. The scholarship covered tuition and living, and the grant paid for my visa and flight.”
Her story highlights how different funding types can work together to make dreams happen.
Where to Find Scholarships and Grants
- University websites: Look under “Funding” or “Fees and Scholarships”
- Government portals: Like Student Finance England or the U.S. FAFSA site
- Scholarship search engines: Such as ScholarshipPortal, Fastweb, or Chegg
- NGOs and foundations: Especially those focused on education, diversity, or development
- Embassies and cultural exchange programmes: Like Fulbright or DAAD
Conclusion: Make Every Opportunity Count
Understanding the difference between scholarships vs grants gives you a clearer path through the funding maze. Scholarships reward your talents. Grants support your needs. Together, they help level the playing field.
Start early. Be organised. Apply widely. And don’t let confusion hold you back from accessing the types of funding that could change your life.
Ready to explore your options? List five scholarships and three grants you qualify for today. Start with the easiest one. Then move to the next.
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Know someone trying to understand scholarships vs grants? Share this article and make their journey a little easier.
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