The Difference Between College Scholarships and College Grants

Published on Thursday, October 21st, 2010 by Nohel Category: College Scholarships And Grants

photo: howstuffworks.com

College funding is a hot button issue among thousands of people across the United States. Whether you believe that the government should be awarding grants to students or they should be focusing on other financial aid vehicles, it is important to know the difference between college scholarships and grants.

College Scholarships

College scholarships can be awarded by the school, government, private group, individual, civic organization or any body that wishes to do so. These scholarships are considered to be financial aid and can be awarded through payment to the student or to the school that the student will be attending. Scholarships typically are awarded to a student directly.

College Grants

College grants are typically awarded from a governmental body. Whether it is a state or the federal government, the Federal Pell grants or other type of grants are typically not going to come from the community. While some scholarships may call themselves grants, it does not mean they are actual grants. Grants are typically available to students who meet specific qualifications. Pell grants are awarded based upon what you submit on your FAFSA, the financial aid application. Other grants may be awarded because a student achieved a certain level on test scores or for other reasons that the college deems to be fit.

College scholarships and grants can both be refunded if a student has an excess balance within their student account. Typically, a school may/may not refund the scholarships that they award to a student. For example, if the only reason a student receives a $1,000 refund is that they received a $5,000 scholarship from their school, the school may either reduce the initial award amount to $4,000 or keep the extra balance as available to spend towards the next semester of tuition.

College Scholarships and Grants

College scholarships and grants are both similar to each other because they are under the financial aid tree. However, their similarities end there. Scholarships can be awarded by anyone who chooses to award them. Some scholarships are called grants because they like the name. However, most grants are awarded by a governmental body for certain types of achievements.