If you’re planning to study abroad or further your education, one of your biggest concerns is likely funding. While scholarships and grants are often used interchangeably, they are not the same thing.
Both are forms of “gift aid” that ease the financial burden of tuition, living expenses, and travel, meaning they do not need to be repaid. But understanding the fundamental difference can help you make smarter, more targeted choices when applying for funding in 2025 and beyond.
In this guide, we’ll break down what scholarships and grants are, how they work, and which ones may be better suited for your education or career goals.
What Is a Scholarship?
A scholarship is a financial award given to students primarily based on merit, academic excellence, leadership, talent, or specific achievements.
Many universities and organisations around the world, especially in countries like Canada, the UK, and Australia scholarships to attract outstanding students and incentivize high performance.
Types of Scholarships:
- Merit-based scholarships: The most common type; awarded strictly for academic or extracurricular achievements (e.g., high GPA, sports, or arts).
- Field-specific scholarships: Awards reserved for students pursuing certain subjects (e.g., STEM, Medicine, Business, or the Arts).
- International student scholarships: Targeted toward foreign students studying abroad (e.g., country-specific awards).
- Need-based scholarships: A less common hybrid, combining academic potential with demonstrated financial need.
Example: The Chevening Scholarship (UK) and the Fulbright Program (USA) are top examples of highly competitive, merit-based awards covering full tuition, travel, and living costs.
What Is a Grant?
A grant, on the other hand, is usually awarded based on financial need rather than merit. Grants are designed to make education accessible to students from low-income backgrounds or developing regions who otherwise couldn’t afford higher education.
Unlike loans, grants don’t need to be repaid, but recipients are often required to meet certain conditions (like maintaining continuous enrollment or completing the program).
Common Sources of Grants:
- Government education departments (e.g., the U.S. Pell Grant, though this is primarily for domestic students).
- International organisations (e.g., World Bank, UNESCO, or the European Union).
- Private foundations and NGOs specifically focused on development or equity.
Example: The DAAD Development-Related Postgraduate Scholarships (Germany) and the Commonwealth Shared Scholarship are major need-based grants for students from developing countries seeking Master’s or PhDs.
Scholarships vs Grants: The Key Differences
Understanding the core distinction between merit and need is the key to a strategic application process.
| Feature | Scholarship (Merit-Focused) | Grant (Need-Focused) |
| Primary Basis of Award | Academic excellence, talent, achievements, or leadership. | Demonstrated financial need or economic hardship. |
| Who Offers It | Universities, corporations, private foundations, or governments. | Governments, large donor agencies, or NGOs. |
| Application Focus | Personal essays, CV/résumé of accomplishments, high grades, letters of recommendation. | Proof of income, economic hardship documentation, and financial background forms. |
| Competitiveness | Highly competitive (you are competing against top achievers). | Competitive, but restricted to applicants within a certain income bracket. |
| Repayment | No repayment required (Gift Aid). | No repayment required (Gift Aid). |
Which Is Better for You?
The best funding strategy is not to choose one, but to apply where you are strongest.
| Your Profile | Best Strategy | Reasoning |
| High Achiever: Strong grades, leadership, research, or athletic talent. | Go for Scholarships. | Your academic/extracurricular merit gives you a competitive advantage over others. |
| High Financial Need: From a developing country or low-income background. | Prioritize Grants. | Grants are designed to level the playing field, making your financial need your primary qualification. |
| The Ideal Applicant: Strong grades AND financial need. | Apply for Both. | Many programs, including some major scholarships, consider both merit and need. You maximize your chances by casting a wide net. |
In reality, most successful students combine multiple funding sources. For example, you could receive a partial scholarship to cover tuition and supplement it with a grant to cover living costs or airfare.
How to Apply for Scholarships and Grants
The difference in funding criteria means your application approach must also differ.
- Start Early (6–12 months out): Most applications open 6–12 months before the academic year. Give yourself time to gather documentation and craft strong essays.
- Research the Eligibility Critically: Do not waste time on an application unless you meet every single stated requirement (GPA, nationality, degree level, etc.).
- Prepare a Strong Document Core: Have pristine academic transcripts, recommendation letters, and a versatile CV ready to go.
- Tailor Your Narrative:
- For Scholarships: Highlight your past achievements, leadership roles, and future potential.
- For Grants: Emphasise the barriers you have overcome and the impact your degree will have on your home community.
- Applying without checking the eligibility criteria. This is the number one reason applications are immediately rejected.
- Using the same generic essay for all applications. Tailoring your statement shows the reviewer you did your research and are serious.
- Missing deadlines due to poor planning. Deadlines are non-negotiable, especially for high-profile government awards.
- Ignoring smaller grants or partial scholarships that could cover crucial expenses like airfare or books.
Both scholarships and grants can open life-changing opportunities for students, whether you’re pursuing a Master’s degree in the UK or an undergraduate program in Canada. The key is to understand the difference and apply strategically based on your individual strengths and financial situation.
Remember, funding your education abroad doesn’t have to be a dream. With persistence and planning, you can make it a reality, and 2025 might just be your year.