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Financial Assistance — Scholarships vs. Grants vs. Loans

Financial assistance can be complex. Let's break it all down. First, it's important to note that not all academic aid is created equally. Therefore, if you don't receive a full-ride scholarship, you must be aware of all your options, as well as the pros and cons of each option. Get to know the difference between scholarships vs. grants vs. loans.

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What's the Difference?

Scholarships, grants, and loans all serve as a launching pad from high school to college; they all help to cover the costs of tuition, textbooks, and room and board. However, the crucial difference is that scholarships and grants do not need to be paid back, whereas loans must be paid back with interest. Because of this one reason, we strongly suggest scholarships and grants over loans. See below to learn what differentiates a scholarship from a grant.

  • Scholarships — Awarded on the basis of merit and achievement.
  • Grants — Awarded on the basis of financial need.


Every year, billions of dollars are awarded to undergraduate students. There are countless resources for educational funding, including nonprofits, state governments, and federal programs. The money is sitting there; you just need to know where, when, and how to apply. Check out our information pages to learn about the various ways you can fund your schooling.