Completing an education program can be challenging at some point in time due to financial restrictions, that’s where scholarships and grants come in to make the journey easier.
Although the terms “scholarships” and “grants” are often used in the same context, this does not imply that they are the same because there are significant differences between them.
They are both considered a mode of funding including for students during their academic program. The criterion for receiving awards may be determined by ethnicity, age, academic performance, etc.
Grants Vs Scholarships
What is Grant?
Grants are government aid programs intended at enhancing the financial development of both local and international residents of a given country. Its main purpose is to stimulate socio-economic growth through the means of providing financial aid to low-income earners who lack the financial capacity.
Grants are sometimes offered to individuals, business owners, and also for education at times. To qualify for a government grant, one of the main factors considered is the submission of an income statement before the selection process. Grants can also be provided by other entities such as individuals, charitable foundations, specialized grant-making institutions, or even a business.
After an individual or business indicates interest in a grant, the government responds by issuing funds from public revenue to support the applicants’ financial aims and objectives. For example, business merchants, students, and so on can apply for government grants.
What is Scholarship?
Scholarships on the other hand can be referred to as a financial aid program specifically designed for students. However, its source of funding is not limited to a few establishments because the source of funding can be drawn from various sources.
Scholarships are commonly granted to students based on their athletic abilities, academic performance, and involvement in extracurricular activities.
Similarities Between Scholarships And Grants
The funds awarded for scholarships or grants programs are to be spent without worrying about repayment.
They both render financial aid to students.
Most scholarship and grant awards applications are opened yearly.
Proof of income may be required with both scholarships and grants.
Difference Between Scholarships And Grants
Source of funding:
Various governmental and non-governmental organizations sponsor scholarships and grants. However academic grants are majorly awarded by the government, while scholarship draws funds from various entities.
Eligibility:
Scholarships are student-based programs, unlike Grants that are designed for individuals, business merchants, and so on.
The basis for receiving grants as a student or business owner is by identifying as a low-income earner, unlike scholarships where students may need to meet the various conditions normally set by the sponsors.
Application Deadline:
Late admission reduces your chance of receiving government grants because of its competitiveness, and because they are often awarded on a first come basis. On the other hand, students who submit their scholarship application early are not guaranteed of receiving the set rewards.
Financial Target:
Before an individual or business can be awarded grants, he or she may be required to complete certain spending such as a tax payment before they are issued funds. Scholarships do not give individuals any form of target.
Award Amount:
The amount of money awarded in both scholarships and grants programs tend to vary from each other. At times, a person may receive $10,000 for housing or business grants whereas another person can receive a lesser amount of money.
Scholarship on the other hand outlines the specified amount that every student will receive, and the value remains constant for every student.
Economic Situation:
The economic situation of a given state can affect the amount stipulated in government grants while scholarships are usually awarded regardless of the economic challenge.
In conclusion, Scholarships and grants are good options designed to help students fund their education without incurring debts. Grants are designed for the general public in need of financial support, while scholarships are designed for students only.
The criteria for receiving these awards are not the same, and the amount of money awarded to students also tends to vary from each other.
