Scholarship and grant are two forms of financial aids that are often used interchangeably. However, there usually exist differences between scholarship and grant which remain unnoticed by many. While scholarship is a merit-based financial aid awarded to students only while the grant is awarded to all persons who are in need of it.
Students who are in need of financial assistance to further their education or project can apply to the government for a scholarship or grant. This article will highlight the key differences between scholarship and grant.
Definition of Scholarship
A scholarship is a financial aid given to a student for his academic, artistic or athletic ability, to pursue high-level education. In most cases, students who excel in specific activities, affiliations, sports, competitions, etc are awarded scholarship with the aim of motivating them to do better.
A scholarship is conferred by the government, universities, foundations, corporations or any other entity to those students only who qualify the specific criteria set by the donor. The rules for winning a scholarship are a bit strict, and students have to maintain a specific score, to keep the scholarship regular. There are different types of scholarships which are;
- Merit-Based: This is a type of scholarship given on the basis of a student’s academic achievements.
- Need-Based: A scholarship awarded to students who fulfill specific criteria by the educational institution.
- Student-specific: The scholarship available to the students of a specific community or group.
- Career-specific: It is a scholarship awarded to those who pursue a particular course.
- Athletic: Scholarship is given to the students who participate in sports.
Definition of Grant
A grant is a financial aid awarded by the government, corporation, foundation or trust, to an individual, business, educational institution, non-profit organization or any other entity for a prescribed purpose, specifically a project, relating to education, agriculture, construction, medical services, etc. Grant may also be known as duty drawbacks, subsidies, and cash incentives.
Grants are given for various purposes like studying abroad, undertaking research, starting a new business, or even to the victims of natural disasters.
When grants are given to fund a project, a certain standard is required to be met, and reporting should be done accurately and timely. Grant should be used according to the purpose specified or else the recipient will lose the funding. Some grants are to be refunded if they are not used for the specified purpose.
Similarities Between Scholarship and Grant
Both scholarship and grant are available in the form of free money which need not be refunded. However, there are certain criteria attached to it, which are to be met to sustain it for long period. Scholarships and grants are awarded only when a person applies for it.
Differences Between Grant and Scholarship
Highlighted below is the difference between grants and scholarships.
1. A scholarship is a financial aid awarded to the student so as to help him/her pursue high-level education. Grants are funds provided by the government or any other entity to an individual or entity to carry out a specific purpose or project.
2. Scholarships are awarded only for educational purpose. Grants are awarded for different purposes like to study abroad, undertake research, start a business or, any other purpose.
3. The scholarship is awarded on a merit basis, which can be academic, athletic or artistic, but sometimes need. Grant is awarded to a person on the basis of their need.
4. A scholarship is awarded to students only and that also to further education. A grant is awarded to an individual, a non-profit organization, educational institution etc., who qualify the specific criteria.
5. In scholarship, the performance level of the student should not be lower than specified, or else the scholarship will be stopped. In grant, although specified conditions are required, the individual need not maintain the defined level of performance.