The key difference between college grants and loans is repayment. While loans are borrowed money—often with interest—grants are effectively ‘free’ money. In order to qualify for a grant, however, an applicant must meet specific criteria set out by the institution making the grant. There are a wide variety of college grants and loans out there, and there can be quite a significant difference between the requirements of different grants, for example.
Certain college grants and loans require you to be studying within a specific field. Others are one-time grants, which are intended to fund a particular body of research or a specific project. Often, such specific grants are funded by bodies that have an interest in the work being done, such a pharmaceutical company funding a medical research grant.
College grants and loans can be publicly or privately funded. In the former case, money for the grant or loan is provided by a government body. Often, these college grants and loans are geared towards achieving certain socially desirable ends, such as equal access to education. Accordingly, many governments offer college grants and loans specifically for low- and middle-income families.
Privately-funded college grants and loans, on the other hand, can come from a number of different sources. Some institutions that fund college grants and loans include banks, non-profit organizations or foundations, educational institutions and even philanthropic individuals. Again, there can be quite some variety in the criteria that applicants must meet to qualify for such financial assistance.
If you are searching for college grants and loans, one good place to get information is from the university or institution at which you are planning to study.
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