Grants are typically based on financial need. They often use the Expected Family Contribution (EFC) from the FAFSA to determine eligibility. Some grants might have a merit component, but they're mostly about helping those who need it most. Think of grants as the Robin Hood of financial aid—taking from the rich (government or institutions) and giving to the students in need.

Scholarships, on the other hand, are usually based on merit. This means they look at things like grades, GPA, major, personal accomplishments, experiences, or even identity. Scholarships are like the gold stars of financial aid, rewarding students for their hard work and achievements.

In summary, while both scholarships and grants are awesome because they don't need to be repaid, grants are more about financial need, and scholarships are more about merit.