Grants and scholarships are both fantastic forms of financial aid because they don't require repayment (yay for free money!). However, they do have some differences:

1. Basis for Award:

   • Grants are typically need-based. This means they're awarded based on the student's financial situation. If a student's family income is below a certain threshold, they might qualify for grants.

   • Scholarships, on the other hand, are usually merit-based. They're awarded based on a student's achievements, such as high grades, test scores, or unique talents. Some scholarships might also consider financial need, but merit is often the primary factor.

2. Sources:

   • Grants often come from federal or state governments. For example, the Pell Grant is a well-known federal grant.

   • Scholarships can come from a variety of sources, including colleges, private organizations, and community groups.

3. Requirements:

   • Some grants might have specific requirements, like the TEACH Grant, which requires recipients to work in a particular field after graduation.

   • Scholarships might have requirements related to maintaining a certain GPA or participating in specific activities.

In summary, while both grants and scholarships are excellent ways to fund education without the burden of repayment, they differ mainly in how they're awarded and where they come from. Whether you're a financial wizard or just trying to avoid student loans, understanding these differences can help you maximize your financial aid options. 🎓💰