A scholarship is an award of financial aid for a student to further education. Scholarships are awarded on various criteria usually reflecting the values and purposes of the donor or founder of the award.
Grants are funds disbursed by one party (Grant Makers), often a Government Department, Corporation, Foundation or Trust, to a recipient, often (but not always) a nonprofit entity, educational institution, business or an individual.
Scholarships are awarded to students who are academically qualified for it and those who need financial assistance to complete their course in time.
Grants are usually awarded to:
- Non-profit organizations: Grants are made in social services, health, education, early childhood and youth services, arts and culture, housing and neighborhood development
- Veterans: Governments issue grants for the training veterans to serve in the new economy.
- Colleges and Universities: Grants are awarded to enhance research programs and other academic facilities.
Grants are usually not categorized.
Scholarships can be merit based, need based, student specific and career specific. Merit based scholarships are based on a student's athletic, academic, artistic or other abilities, and often factor in an applicant's community service record and extracurricular activities. Need based scholarships are based on the student and family's financial record and require applicants to fill out a FAFSA (Free Application for Federal Student Aid ) to qualify if the scholarship is a federal award. Student specific scholarships are granted to applicants who must initially qualify by race, gender, religion, family and medical history, or many other student-specific factors. Career specific scholarships are awarded by a college or university to students planning to pursue a specific field of study.