Both “scholarship” and “financial aid” refer to sums of money given to researchers and students to support their work in study and research. Universities, foundations, groups, and governmental organizations may offer scholarships and other forms of financial aid. In this article, we look at the difference between financial aid and scholarships.
What is Financial Aid?
Financial aid is available to qualified students to apply toward the cost of their education while they are enrolled in a program leading to a degree. You can use the MPoweer eligibility checker to check if you will be considered for three types of financial aid:
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- Grants
- Work-study
- Student Loans
It is not necessary to submit separate applications to be eligible for this kind of assistance. To be considered, submit an early application each year.
Note that the FAFSA and the availability of funds determine a person’s eligibility for need-based financial aid. Annual eligibility is required for need-based awards. Need-based prizes consist of:
- Grants
- Work-study
- Federal Subsidized Direct Loan
A grant typically has no repayment requirements. You can work off-campus or on-campus to obtain the work-study award. With a subsidized direct loan, the interest is covered while you are enrolled in school by the federal government.
What are Scholarships?
Scholarships are financial aid or grants given to students in support of their education, given out in recognition of their academic or other achievements. It is a form of financial aid given to a student to further their education. It is granted based on the student’s academic standing or other factors, such as financial need. These opportunities usually ask for an application, and there might be particular standards for eligibility that pertain to a student:​
1. Academic merit, grades, and test scores
2. Financial need, often defined differently than by the FAFSA guidelines
3. Community service, work history, and preferences such as:
- Gender
- First generation (neither parent has a four-year degree)
- Race and ethnic identity
- Community involvement
- Major or minor degree program
- Age
- Special talents and hobbies
- Memberships in organizations
Difference between financial aid and scholarship
The primary distinction between the phrases “scholarship” and “financial aid,” even though they are sometimes used synonymously, is that the former is seen as a component of the latter in the academic and educational sectors. Thus, “financial aid” consists of “scholarships.”
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The most common form of financial help is still a scholarship, but there are other options as well, such as grants, fellowships, study allowances, travel grants, studentships, loans, and tuition fee exemptions. The names “bursary” and “stipend” are sometimes used in place of the word “scholarship” in various situations and across various nations.
For instance, student loans are a sort of financial aid that is mainly given by banks and other financial institutions to help students pay for their tuition fees and occasionally their living expenses. They must be repaid with interest within a maximum of thirty years. Scholarships, grants, and fellowships, in contrast to loans, are gifts given to students and researchers to help with living expenses and educational expenditures; recipients are under no obligation to repay the money to the scholarship source.
Note that while grants and scholarships can have similar meanings at times, the primary distinction between the two is that grants are available to organizations as well. For instance, federal grants are used to support universities and research institutes in their efforts to advance in particular fields of study, such as cancer research.
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