Financial Aid · Updated August 31, 2026
Scholarships, Grants and Student Aid: Understanding the Differences
Understand common forms of education funding and the questions students should ask before accepting an award or loan.
Scholarships
Education funding can come from several sources, and the labels matter because repayment obligations and eligibility rules differ.
Grants
Scholarships are generally awards that do not need to be repaid when the recipient meets the stated conditions. They may be based on academic performance, talent, community involvement, financial need, field of study, location, or other criteria.
Loans
Grants are also commonly non-repayable, though terminology varies by country and program. Government grants often use financial eligibility rules. Students should confirm whether an award can change if enrollment status or circumstances change.
Work-study and employment
Loans are borrowed money and normally must be repaid under specified terms. Before borrowing, understand the interest rate, when interest begins, repayment schedule, grace period, fees, deferment options, and consequences of missed payments.
Read the conditions
Some students combine aid with work-study programs, campus employment, apprenticeships, or outside work. Consider the academic effect of work hours as well as the income.
Compare net cost
Every award should be read carefully. Check renewal requirements, minimum grades, enrollment load, eligible expenses, duration, and whether the amount is guaranteed for future years.
The most useful comparison is net cost: total expected educational cost minus grants and scholarships that do not require repayment. Loans can make the remaining amount payable today, but they do not reduce the underlying cost.