Many students searching for ways to fund their education often come across two common terms — grants and scholarships. They both sound similar since they provide financial aid that doesn’t need to be repaid, but there are clear differences between them that every student should understand before applying.

Let’s start with the basics. Scholarships are usually awarded based on merit, meaning they recognize academic excellence, leadership, talent, or specific achievements. For instance, a university may offer a scholarship to a student with top grades, outstanding sports performance, or community leadership. In short, scholarships reward what you’ve already achieved or shown potential in.

Grants, on the other hand, are mostly need-based. They’re designed to support students who might not afford education otherwise. Government agencies, NGOs, and educational institutions often provide grants to help students cover tuition, books, or living expenses. The focus is more on financial need rather than academic performance.

Here’s a simple way to remember it — scholarships are earned, grants are given.

For example, a student from a low-income background might receive a grant from a government education board, while a high-performing student could win a scholarship from their university or a private foundation. In some cases, students qualify for both.

The application process also differs slightly. Scholarships may require essays, recommendation letters, or interviews to prove your merit, while grants often involve submitting financial documents to show need.

Both can be life-changing opportunities if used wisely. Whether you get a grant or a scholarship, the goal is the same — to help you study without the stress of heavy tuition costs.

So, when you come across offers online or at your school, take a moment to read the criteria carefully. If it’s based on performance, it’s likely a scholarship; if it’s based on need, it’s probably a grant.

In the end, both open doors to quality education and personal growth. The key is knowing which one fits your situation best — and applying early to make your academic dreams a reality.