Paying for college can feel overwhelming, but financial aid makes it more manageable. Two popular forms of aid—scholarships and grants—often get used interchangeably. But they’re not the same thing. In this guide, we’ll break down the differences and help you decide which one (or both) is right for you in 2025.
What Is a Scholarship?
Scholarships are financial awards given to students based on merit, achievement, or specific criteria. They don’t have to be repaid.
Key Features:
- Often based on academics, athletic performance, leadership, or talent
- Some scholarships also consider financial need
- Can be awarded by schools, private organizations, nonprofits, or corporations
Examples:
- National Merit Scholarship
- Coca-Cola Scholars Program
- Athletic scholarships from NCAA schools
What Is a Grant?
Grants are typically need-based financial aid given to students who demonstrate financial hardship. Like scholarships, grants don’t require repayment.
Key Features:
- Primarily based on financial need
- Funded by federal/state governments or educational institutions
- Easier to apply for via FAFSA (Free Application for Federal Student Aid)
Examples:
- Pell Grant (U.S. federal aid)
- Federal Supplemental Educational Opportunity Grant (FSEOG)
- State-based grants (varies by region)
Key Differences Between Scholarships and Grants
| Criteria | Scholarships | Grants |
|---|---|---|
| Based on | Merit, talent, or specific criteria | Financial need |
| Who awards them | Private orgs, universities, nonprofits | Government or schools |
| How to apply | Varies—usually direct to provider | Typically through FAFSA |
| Renewal | May require maintaining GPA or reapplying | Often based on continued need and enrollment |
Can You Apply for Both?
Absolutely! In fact, it’s smart to apply for both. Many students combine scholarships and grants to reduce or eliminate out-of-pocket costs.
Tip: Apply early and often. Keep track of deadlines and requirements. Each dollar you earn in aid is one you won’t need to borrow.
Which Should You Focus On?
If you have strong academic or extracurricular achievements: Prioritize scholarships.
If your family has limited income or high financial need: Make sure you apply for grants through FAFSA.
Best Case: Apply for both to maximize your aid package.
Final Thoughts
Grants and scholarships are both excellent ways to fund your education without the burden of debt. Understanding the difference can help you plan smarter and apply more strategically. In 2025, take advantage of every available opportunity—because your education shouldn’t come with a lifetime of loans.
