Contents
Introduction
A scholarship is a merit-based award offered by a college, government agency or other organization. You might be eligible for a scholarship if you meet the criteria set by the organization.
A student loan is money that you borrow from the government, a bank or another lender, and then repay with interest.
Student loans and scholarships both help a student pay for college, but they are very different.
A student loan is a financial aid award that you must repay, as opposed to a scholarship, which is a gift. Many students assume that student loans are free money, but not all of them are. Student loans are different from scholarships in several ways:
- A scholarship is a gift; it doesn’t need to be paid back.
- Scholarships may be based on merit (what you’ve accomplished), financial need (how much money your family makes), or both. Student loans only go toward paying tuition and fees at specific schools that have accepted you as an enrolled student.
- You don’t necessarily know how much money will be available for each type of student loan (federal or private) until after you apply for one or more of them—and even then it’s hard to predict what exactly will happen during repayment! But with scholarships there should never be any surprises because they’re not conditional on anything except being awarded by someone who wants their name associated with yours as long as possible through social media posts about how thankful “I am” because now I can afford nursing school without having debts hanging over me like millstones around my neck…
The biggest difference is that you do not have to pay back a scholarship.
The biggest difference is that you do not have to pay back a scholarship. Scholarships are awarded based on merit or academic performance, so they’re usually awarded to students who meet the criteria set by the organization that’s awarding it. A good rule of thumb is if you don’t know what you need to do to get one, then you probably won’t get one!
For example, if you want to get an athletic scholarship from your school’s athletic department, then show up for every practice and game (and win them all) until it’s time for tryouts again next year. If you want a Disney College Program Scholarship (a free trip), then work hard at your job and score high marks in classes while working there during the summer months before college starts again in September.
A student loan is money that you borrow from the government, a bank or another lender, and then repay with interest.
A student loan is money that you borrow from the government, a bank or another lender, and then repay with interest. You have to make payments on your student loans for as long as you owe them. The amount of your monthly payment depends on how much money you borrowed and what type of repayment plan you choose. You can use federal student loans to pay for school at any eligible educational institution in America — including colleges, universities, technical schools and other postsecondary institutions — as well as many types of training such as vocational programs, graduate school or professional development classes.
You may be able to defer payment on some or all of your federal education debt if:
- Your total annual earnings are below 150 percent of the poverty guideline level for your family size;
- You’re enrolled at least half time (six credits per semester) in an eligible program at an eligible institution; and/or
- You’re serving in AmeriCorps VISTA program (a national service program run by Americorps).
A scholarship is a merit-based award offered by a college, government agency or other organization.
A scholarship is a merit-based award offered by a college, government agency or other organization. You’ll have to apply for scholarships, but you have a much better chance of getting them because they’re based on merit rather than need. Scholarships can be based on academics, athletics or other factors — even as specific as your gender identity or disability status.
Scholarships don’t have to come from the college itself; they can also come from organizations within your community that want to support students like you and help get you through school in exchange for future volunteer work (like Americorps). If you look hard enough, there are plenty of places where you can find money for school!
You might be eligible for a scholarship if you meet the criteria set by the organization.
If a scholarship exists, you might be eligible for it if you meet the criteria set by the organization. For example, a student who excels academically might receive an academic scholarship that covers tuition and fees.
Scholarships don’t have to be repaid because they’re awarded based on merit, not financial need. While scholarships do not usually cover living expenses (that’s what loans are for), some grants or fellowships may be available to help cover those costs as well.
Merit scholarships can save students thousands of dollars in college costs.
So, how do you get that scholarship?
Scholarships are awards based on merit rather than financial need, so they don’t have to be paid back. You can find scholarships online via different search engines like the National Center for Education Statistics’ College Navigator or Fastweb.com (you can also use us). You’ll be able to see if there are any grants or scholarships that match your interests and qualifications. And don’t forget your own high school guidance counselor; they might know about local opportunities or other sources of aid you’re not aware of.
You can also apply for private scholarships—these typically require an application and essay submission as well as a letter of recommendation from someone who knows you well: your teacher, coach or employer would all make good recommendations. Be sure to ask around—people might surprise you by offering their help with applications!
Conclusion
Scholarships are a great way to save money on college costs, but they do not need to be paid back. Student loans offer students the chance to attend college without having to pay tuition up front. The main difference between these two types of financial aid is that scholarships are awarded based on merit while student loans require repayment in addition to interest rates that can reach as high as 10 percent per year