When planning to fund your education—whether you're a student from Sri Lanka, India, or anywhere in Asia aiming for universities in the U.S., Canada, Australia, or the UK—it's essential to understand the different types of financial aid available. Two of the most common forms are grants and scholarships. While both offer financial assistance that doesn't require repayment, they differ in their sources, eligibility requirements, and usage.
This comprehensive guide explains the difference between grants and scholarships, who qualifies, how to apply, and which might be more suitable depending on your academic and financial situation.
Understanding the Basics: What Are Grants and Scholarships?
What Is a Grant?
A grant is financial aid typically awarded based on financial need. It is often provided by governments (federal or state), universities, or organizations that support education. Grants are designed to ensure that students from low-income backgrounds have access to higher education without the burden of excessive loans.
Grants do not require repayment, unless you fail to meet certain conditions—such as withdrawing from the course early or not maintaining satisfactory academic progress.
What Is a Scholarship?
A scholarship is financial assistance usually awarded based on merit, talent, academic achievement, or specific criteria such as leadership, athletics, or community service. Scholarships are offered by universities, private foundations, corporate entities, or even government departments.
Scholarships also do not require repayment, and are often seen as a reward for performance or promise in a particular field or discipline.
Key Differences Between Grants and Scholarships
| Feature | Grants | Scholarships |
|---|---|---|
| Based on | Financial need | Academic merit, talent, or specific achievements |
| Who awards it | Government, universities, non-profits | Universities, private companies, NGOs, endowments |
| Repayment required | No (unless terms are violated) | No |
| Common recipients | Low-income students, underrepresented groups | High-achieving students, athletes, artists, researchers |
| Application process | Usually tied to financial aid forms (e.g., FAFSA in the U.S.) | Often involves essays, recommendation letters, portfolios |
| Academic performance required | Must maintain satisfactory progress | Often high academic performance is expected throughout |
| Use case | Covers tuition, fees, sometimes living expenses | Can be full or partial funding, sometimes tied to a particular subject or institution |
Examples of Grants and Scholarships by Country
To better understand how each works, here's a quick overview of the types of grants and scholarships available in major education destinations.
United States
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Grants: Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG)
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Scholarships: Fulbright Program, Gates Millennium Scholars Program, institutional scholarships by universities like Harvard or Stanford
Canada
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Grants: Canada Student Grants for Full-Time Students, Provincial student assistance grants
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Scholarships: Vanier Canada Graduate Scholarships, Lester B. Pearson International Scholarship
United Kingdom
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Grants: Maintenance Grants (phased out in some regions but still available through specific channels), Disabled Students' Allowance
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Scholarships: Chevening Scholarships, Commonwealth Scholarships, Rhodes Scholarships
Australia
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Grants: Relocation Scholarship, Indigenous Student Assistance Grants
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Scholarships: Australia Awards, university-specific merit scholarships (e.g., University of Melbourne Graduate Scholarships)
Who Should Apply for a Grant?
Grants are suitable for students who:
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Come from low-income families
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Face financial barriers to higher education
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Want to study abroad but lack resources
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Need additional support to cover living expenses
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Are applying to public institutions or universities with strong government funding links
Grants are especially useful for students who may not have a top academic record but are still highly motivated and in need of financial assistance.
Who Should Apply for a Scholarship?
Scholarships are ideal for students who:
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Excel academically
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Demonstrate leadership, sports talent, or artistic excellence
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Have clear career goals and community involvement
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Want to stand out in competitive university admissions
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Are targeting top-tier programs or niche disciplines
Merit-based scholarships can often cover a significant portion—or even the entirety—of tuition and living costs, making them highly attractive for high-performing students.
Can You Apply for Both Grants and Scholarships?
Yes. Students are often encouraged to apply for both. For example, an international student may qualify for a need-based grant from a university and also receive a merit-based scholarship from a foundation. Combining multiple funding sources can drastically reduce or eliminate out-of-pocket expenses.
How to Apply: Step-by-Step Guide
Applying for Grants
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Determine Eligibility
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Review income criteria or other need-based qualifications
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Check residency or citizenship requirements
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Submit a Financial Aid Form
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U.S.: FAFSA (Free Application for Federal Student Aid)
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Canada: Provincial aid applications + StudentAid
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UK: Student Finance portal
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Australia: Through Centrelink or institutional offices
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Provide Documentation
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Family income statements, tax returns, asset reports
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Await Assessment
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If approved, the grant is either disbursed directly to your institution or deposited into your student account
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Applying for Scholarships
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Research Opportunities
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University websites, embassy announcements, education fairs
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Check Requirements
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Academic scores, language proficiency (TOEFL/IELTS), recommendation letters, personal statements
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Submit Application
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Some require online forms; others may ask for videos, essays, or interviews
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Prepare for Competitive Selection
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Scholarships often have fewer spots and may require multiple rounds of evaluation
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Pros and Cons of Each
Grants
Pros:
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Need-based, more accessible to underprivileged students
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Often automatically considered with financial aid forms
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No pressure of academic competition
Cons:
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Amounts may be smaller compared to scholarships
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Eligibility can change based on family financial status
Scholarships
Pros:
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Prestigious, can enhance your academic profile
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Some offer full coverage (tuition + living)
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May open doors to alumni networks and future job placements
Cons:
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Competitive; thousands may apply for a few spots
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Often come with academic or performance obligations
For International Students from Asia and Sri Lanka: Key Considerations
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Start early: Most scholarship deadlines are 6–12 months before intake.
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Polish your academic and extracurricular record: Especially important for competitive merit-based scholarships.
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Prepare strong documentation: Well-written statements of purpose, recommendation letters, and transcripts matter.
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Check local and regional scholarship boards: Countries like India, Sri Lanka, and Bangladesh often offer outbound student support.
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Use a combination of funding: Don't rely on one source. Apply widely.
Final Verdict: Which One Is Better?
It's not about which one is better—it's about which one is better for you.
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If finances are your biggest barrier, grants can unlock doors.
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If you have a strong academic or extracurricular background, scholarships can reward you with greater support.
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In many cases, you can and should apply for both.
Ultimately, understanding the difference between grants and scholarships empowers you to explore more opportunities, increase your chances of acceptance, and reduce financial stress while pursuing your academic goals in leading institutions around the world.
