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07/05/2021

How are scholarships and grants different?

How are scholarships and grants different?

Grants and scholarships are both types of gift aid. Gift aid is money that does not need to be earned or repaid, unlike student employment and student loans. Grants tend to be based on financial need, while scholarships tend to be based on merit.

Is a scholarship a loan?

Scholarships are generally granted in the same fashion as student loans. Whereas a student loan check is often cut directly to you, the student, you’re not likely to ever lay eyes on your scholarship money. Student loans are usually paid out in one lump sum at the start of each school year or semester.

Is the Pell Grant a scholarship?

Your aid package will include any grants you’re eligible for (such as a Pell Grant), as well as scholarships, work-study, and federal student loans. Your school can apply Pell Grant funds to school costs; pay you directly, usually by check; or a combination of both.

How much is a full Pell Grant 2020?

The maximum Federal Pell Grant award is $6,345 for the 2020–21 award year (J, to J). your plans to attend school for a full academic year or less.

What happens to leftover Pell Grant money?

If you have money left over from your Pell Grant, you can ask the school to hold the funds for you, or you can receive the remaining amount as a refund. Pell Grants go toward education expenses, except student loan expenses. After the add/drop period to ensure only enrolled students receive money.