Grants are funds disbursed by one party (Grant Maker), often a Government Department, Corporation, Foundation or Trust, to a recipient, often (but not always) a nonprofit entity, educational institution, business or an individual. A scholarship is an award of financial aid for a student to further education.

The main difference between a grant and a scholarship is where the funds come from, eligibility criteria, and the application process. In general, grants are given based on financial-need, while scholarships are merit-based and awarded to students based on their academic achievements, extracurricular activities, field of study, and more.

A grant is need-based financial aid that does not require repayment, while a scholarship is merit-based financial assistance awarded for academic, athletic, or other achievements. Grants are need-dependent, while scholarships are awarded based on academic excellence or specific criteria set by the provider.

The points given-below explain the difference between grant and scholarship in detail: A monetary aid, awarded to the student, so as to help him pursue high-level education, is called scholarship. Funds provided by the government or any other entity to an individual or entity to carry on a specific purpose is called grant.

Both grants and scholarships offer free money to incoming and current college students. Grants are generally based on financial need, whereas most scholarships are based on merit. Popular federal grants for college include the Pell Grant and the TEACH Grant.