For college students and their families, the big financial question is how to pay for college. Grants and scholarships may be part of the answer, but what exactly is the difference between them?
Need vs. Merit
Most grants are tied to the student’s financial need. Students are often evaluated based on their ability to pay for college, given their family income, savings, and other assets. There may be additional requirements to qualify for grants, but the demonstrated need is typically what differentiates grants from scholarships.
On the other hand, scholarships are more commonly awarded to students based on merit. They are reserved for students who have achieved high accomplishments in academics, sports, leadership, or other activities. Scholarship programs may also consider financial need or other criteria, including the student’s ethnicity or state residency.
The criteria related to grants and scholarships are not black and white, so it is advisable to apply for both even if you believe you may not meet the requirements. Many grants consider financial need alongside other criteria, and some grants are not based on need, such as those awarded for parental service in the military or for students pursuing an education career.
How to Find Grants
A grant can make a significant difference for students in understanding how to pay for college. Many grants are offered through government programs, such as Federal Pell Grants, or individual grants designated for state residents. Colleges also offer their own grant programs.
Federal Grants
Here are some grants funded by the federal government:
- Pell Grants are the most common grants for undergraduate students, reaching up to $6,895 for the 2022-2023 academic year based on financial need.
- The Federal Supplemental Educational Opportunity Grant (FSEOG) awards between $100 and $4,000 annually to undergraduate students with exceptional financial need. These grants are managed by financial aid offices at colleges, and not all schools participate in the program.
- The Teacher Education Assistance for College and Higher Education (TEACH) Grants provide up to $4,000 annually for students pursuing a degree in education. These grants have very specific requirements, and the student must agree to work in a high-need field and low-income area after graduation. You do not have to demonstrate financial need.
- The Iraq and Afghanistan Service Grants are awarded to students who are children or dependents of a member of the military who died while serving in Iraq or Afghanistan. Students can only receive these grants if they do not qualify for Federal Pell Grants. The maximum grant is $6,895 for the 2022-2023 academic year. The actual amount that an individual student can receive depends on a number of factors.
State Grants
State grant programs vary widely from state to state, both in the amount of assistance offered and how they are operated and managed.
To find these grants, you can start by visiting the websites of your state’s Department of Education or higher education agencies. You can also check out the guide to state financial aid programs from the National Association of Student Financial Aid Administrators.
Knowing that many grants are available for resident students attending college in the state, not all of these grants have those restrictions. If you are crossing state lines to attend college, be sure to check the programs offered by your home state and the state where your school is located.
College Grants
While you may assume that your college financial aid office will automatically consider you for college-funded grants when preparing your offer letter, you should not take that for granted. Check with your financial aid officer or college advisor, major program advisor, or faculty in the student organization to find out if there are other programs you may qualify for.
How to
Finding Scholarships
You don’t have to be the top student in your class or a talented athlete to find scholarships. Among the thousands of scholarship programs, many are designed to support students from a wide range of backgrounds, achievements, and abilities.
Many scholarships are funded by nonprofit organizations, institutions, corporations, and individuals. Some grants are awarded to students of a certain religion, gender, ethnicity, or nationality, while others aim to support students pursuing specific career paths or fields of study.
To find them, search online and within your own community. CareerOneStop, a resource from the Department of Labor, has a scholarship search tool that can connect you to thousands of financial aid opportunities. Also, check out reliable online scholarship sites like Cappex, Fastweb, and Scholarships.com.
Close to home, look for scholarship information from your high school counselor, college counselor, or the review department at your local library. Check with any organization you are connected to, such as your employer (or your parents’ employer), your church, or faith community, or local businesses.
Also, check with your college, as some scholarships select recipients through staff nominations instead of applications.
Conclusion
You are in the best position to know what makes you stand out when searching for scholarships and grants. Take the time to explore these opportunities and make the most of them, and remember that not all forms of financial aid are equal. If you are offered grants or scholarships, be sure to exhaust those funds and any other financial aid before considering student loans.
FAQs
Which is better: scholarships or grants?
Both scholarships and grants are great sources of money to pay for college, primarily because they do not need to be repaid, unlike student loans. Grants may be more competitive, as there are fewer of them. Searching for grants can be a daunting task, as there are many options to choose from.
How can I find grants?
A good place to start looking for grants is federal government student grant programs (there are four main programs). After that, check with your state’s Department of Education or financial aid agency, then visit the financial aid office at your college or university.
Source: https://www.thebalancemoney.com/comparison-guide-college-grants-vs-scholarships-4769003
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