Difference between financial aid and scholarship

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While scholarships are a form of financial aid, there's a significant difference between scholarships and other forms of financial aid.

Financial aid is an umbrella term that includes any kind of money that a student is given to pursue higher education, whether it is from the federal government, their college or university, or a private organization.

Scholarships are just one kind of financial aid. In a financial aid package, students will receive a certain number of scholarships, grants, and student loan offers, depending on their financial situations.

The differences between financial aid forms like grants, student loans, and scholarship money depend on where the money is coming from and whether the money has to be repaid. Grants and scholarships do not need to be repaid, but grants usually come from the federal government and colleges while scholarships often come from private organizations.