Grant vs. scholarship: Understanding the key differences

You’ve got big dreams, a strong college application, maybe even a University of Cincinnati acceptance letter — but now it’s time to tackle the financial side of things.

Good news: There’s free money out there, and you don’t need to win the lottery to get it.

Enter: grants and scholarships — two of the best tools to help fund your education without racking up debt. 

But when it comes to grant vs. scholarship, many students (and families) don’t know the difference. Understanding how each one works can help you unlock thousands of dollars in aid and make college far more affordable.

If you're ready to get smart about financial aid, you're in the right place. Let’s break down what you need to know — clearly, simply and with a focus on making college more affordable for you.

Grants and scholarships are both forms of financial aid awarded to students to help cover the cost of college. Unlike student loans, they don’t need to be paid back, which makes them especially valuable.

So what’s the difference? It all comes down to how you qualify.

• Grants are primarily need-based, meaning they’re awarded to students based on financial circumstances.
  

• Scholarships are mostly merit-based, meaning they’re awarded based on things like academic performance, athletic ability, leadership, community service, or even artistic talent.

The even better news? You don’t have to choose between them. You can apply for both grants and scholarships to maximize your aid.

Grants are designed to help students who may not have the financial resources to afford college on their own. In most cases, the only thing you need to do to be considered is submit the Free Application for Federal Student Aid (FAFSA) each year, so filling it out early is key. Once your FAFSA is submitted, your eligibility is automatically reviewed — no separate application needed. 

Some of the most common grants include:

• Federal Pell Grant: For undergraduate students with exceptional financial need.
  

• Ohio College Opportunity Grant: For eligible students from low- to moderate-income families attending in-state colleges.
  

• UC need-based grant: Awarded directly through the University of Cincinnati to qualifying students.

These grants can also be combined with other forms of aid (like work-study or subsidized loans) as part of your larger financial aid package.

Scholarships are often awarded based on your accomplishments. This can include:

• Academic performance (GPA, standardized test scores)
  

• Athletic or artistic talent
  

• Leadership, volunteerism or extracurricular involvement
  

• Background, identity or intended field of study

• Cincinnatus Scholarship: Automatically awarded to many incoming first-year students based on academic achievements
  

• National Outreach Award: Designed for out-of-state students to help offset non-resident tuition
  

• Program-specific scholarships: Offered by individual colleges like the College of Design, Architecture, Art, and Planning, the College-Conservatory of Music or the College of Engineering and Applied Science, based on your major

Many external organizations also offer scholarships, some that are highly competitive, and others that are surprisingly specific. For example, there are scholarships for first-generation college students, future educators, student musicians, or even those who excel in video gaming. No matter what, there’s a scholarship out there for you.

The answer: Apply for both. 

Grants and scholarships are not mutually exclusive. In fact, stacking aid from multiple sources is one of the smartest ways to reduce out-of-pocket expenses.

Here's how to approach your strategy:

• File FAFSA early to ensure you’re considered for need-based aid.
  

• Apply to scholarships regularly, both through UC and external sources.
  

• Track deadlines and application requirements in a spreadsheet.
  

• Keep essays and materials handy — you can often repurpose them across multiple applications.

Still deciding where to focus your energy?

• If you have strong grades, athletic talent, or creative skills → Apply for scholarships
  

• If your family qualifies financially through the FAFSA → Apply for grants
  

• If you qualify for both → Even better!

The more you apply, the better your chances of receiving aid.

It’s not just about knowing what’s available — it’s about being strategic. These tips can help you make the most of your opportunities:

• Don’t assume you won’t qualify — even small awards add up.
  

• Start searching early — some scholarships open as early as junior year of high school.
  

• Use your strengths — whether it’s your GPA, community service, or passion for theater, lean into what makes you unique.
  

• Look local — local businesses, nonprofits and alumni associations often offer less competitive scholarships.
  

• Ask for help — UC’s financial aid team is here to support you throughout the process.

Navigating the world of financial aid can feel overwhelming, but you’re not doing this alone. The University of Cincinnati offers dedicated resources to help students find, apply for, and manage their aid, including:

• One-on-one financial aid counseling
  

• Scholarship search tools
  

• FAFSA support
  

• Program-specific guidance based on your major or interests

Whether you're a prospective Bearcat or already accepted, UC makes financial planning feel a whole lot easier through our enrollment services.

College is a big investment, but it doesn’t have to drain your bank account. By understanding how grants and scholarships work (and how to qualify for both), you’re giving yourself the best shot at a more affordable college experience.

So go for it. Apply early. Apply often. And remember — every bit of aid you earn gets you one step closer to walking across that graduation stage with less financial stress and more freedom to focus on what matters most: your future.

Read more:

• Scholarship opportunities for high school seniors

• How to get a full ride scholarship: Tips for a debt-free education

• What is a merit scholarship? A high school student’s guide