College Scholarships And Grants

Written by Seth Cotterell
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Anyone considering attending college has probably thought a lot about how they are going to pay for it. College is not cheap, but it is increasingly necessary. With all the different options, things can get a little confusing. I will try and clear things up a little for you by explaining the difference between two of the most common sources of college financing.

College Scholarships and College Grants

First, let me explain how scholarships and grants are similar. Grants and scholarships are alike in that they do not have to be repaid. They are gifts given to students to help them pay for college. They do not accrue interest and when the student graduates, there is no further obligation.

Now, this is how they differ. Scholarships are awarded based on many criteria. Some scholarships are strictly performance based. Students with high grade point averages or outstanding athletic abilities are often awarded scholarships. Eligibility for other scholarships is based on community service or membership in a certain group. Many scholarships are awarded based on some combination of these factors and financial need can also play a role.

Grants, on the other hand, are almost always awarded based on financial need. Students who can demonstrate adequate financial need can qualify for grants. This means either that the student and his or her parents make under a certain annual income level or other hardships come into play such as outstanding medical bills. Whereas scholarships often come from private organizations or are given by certain groups to their members, grants are almost always awarded by the government.

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