Study grants and scholarships are kinds of gift aid. Unlike student loans and employment, gift aid is money you do not have to repay; it is something you earn on merit. Even though people use the words “study grants” and “scholarships” interchangeably, there are striking differences between the two. Scholarships are more merit-based, while grants cater to a person’s financial needs. These are given to students who want to pursue their education. Definition A single party or a grantmaker, usually a trust, foundation, corporation, or government department, disburses a grant. They go to a recipient, typically an individual, business, educational institution, or NPO.   A scholarship is a financial assistance award for a student to pursue higher education. These are provided on different criteria that reflect the purposes and values of the award’s founder or donor.  Recipients Grants   Colleges and universities to accentuate research programs and other academic facilities Veterans to train them to serve in the new economy Non-profit organizations for neighborhood and housing development, arts and culture, youth and early childhood services, education, health, and social services  Scholarships Scholarships are for academically qualified students or those seeking financial assistance to finish their course in stipulated time. Types Usually, grants are not categorized.