How Do I Pay For College?

Financial Aid vs. Scholarships — What’s the Difference?

Financial Aid = Money to help pay for college—can be free or need to be paid back.

• • Includes grants (free, usually based on financial need), loans (you must repay), and work-study (you earn money through a campus job).

  • Based mostly on your family’s financial situation and your FAFSA application.

Example: Pell Grant (free), federal student loan (must repay).

Scholarships = Free money you don’t have to pay back.

• • Given for achievements (grades, sports, leadership, talents) or special circumstances

  • Often competitive—you apply and “win” them.

    1. Example: A $1,000 award for having a 3.8 GPA or being active in community service.
       
       

Bottom line:
All scholarships are financial aid, but not all financial aid is a scholarship. Scholarships are always free money. Financial aid can be free—or it might come with strings attached.