How do I find grants and scholarships I qualify for?

Start with the FAFSA at studentaid.gov — this single application unlocks federal Pell Grants, FSEOG, Federal Work-Study, federal student loans, most state grants, and most institutional aid. Then search free databases: Fastweb, Scholarships.com, College Board, and your state's grant agency website. Apply to your school's financial aid office for institutional aid. Apply to local community organizations (Rotary, Lions Club, employer scholarships) — these have small applicant pools and high odds.

Are scholarships for adults or returning students different from those for high schoolers?

Yes — and they are often less competitive. Adult learner and returning student scholarships include: PEO Program for Continuing Education (women returning to school), Imagine America Adult Skills Education Program, Jeannette Rankin Foundation (low-income women 35+), and many state and community college foundation scholarships specifically for non-traditional students. Many adult learners also qualify for need-based grants because their income tends to be lower than households with high school dependents.

Grants vs Scholarships (2026) — Differences, Similarities & How to Apply

Q: What is the main difference between a grant and a scholarship?

Both are free money you do not repay. The practical differences: grants are usually need-based (awarded based on financial need), while scholarships are usually merit-based (awarded based on academic achievement, athletic talent, demographic, or essay competition). Grants tend to come from federal and state governments; scholarships tend to come from private organizations, foundations, and schools. In practice, the terms are often used interchangeably, especially by colleges using "merit grants" and need-based scholarships.

Q: Are scholarships better than grants?

Neither is universally "better" — they fund the same thing (education) and neither requires repayment. The right answer is to apply for both. Pell Grants typically max out at $7,395 (2026); merit scholarships can reach $50,000+/year. Combine federal grants (Pell, FSEOG), state grants (Cal Grant, NY TAP), institutional grants (school-funded need aid), and outside scholarships (private and foundation awards). Most successful students stack 3–7 different sources.

Q: Do you have to pay back grants or scholarships?

In almost all cases, no — both are gift money. Exceptions: Pell Grants must be partially repaid if you withdraw from school before completing 60% of the term. TEACH Grants convert to loans if you do not complete required teaching service. Some scholarships have similar service requirements (military scholarships, ROTC, medical scholarships). Read the agreement before accepting. See our complete guide on whether you have to pay back grants .

"Grant" and "scholarship" are two of the most-confused words in education funding. Are they different? Are they the same? Does it matter? Here is the honest answer: they are functionally similar (both are free money you do not repay) but technically different in how they are awarded. Understanding the distinction helps you find more funding — because the strategies for finding grants vs scholarships differ. This guide explains everything in plain language.

The Quick Answer

Factor	Grants	Scholarships
Repayment	Generally no	Generally no
Award basis	Usually need-based	Usually merit-based
Typical source	Federal, state, institutional	Private, foundations, schools
Application	FAFSA + state forms	Individual applications
Award size	$100–$7,395 typical	$500–$50,000+
Renewable?	Often yearly via FAFSA	Sometimes; varies by award

Grants: Free Money Based on Financial Need

Grants are typically awarded based on demonstrated financial need (calculated through the FAFSA's Student Aid Index). They flow primarily from government sources — federal, state, and institutional.

Major Education Grant Programs

Federal Pell Grant — Up to $7,395 per year for 2026. The largest federal need-based grant.
Federal Supplemental Educational Opportunity Grant (FSEOG) — $100–$4,000 for high-need students.
TEACH Grant — $4,000/year for students planning to teach in high-need fields. Service requirement.
Iraq and Afghanistan Service Grant — For students whose parent died in military service in Iraq or Afghanistan.
State need-based grants — Cal Grant (California), TAP (New York), MAP (Illinois), Bright Futures (Florida need-based portion), and similar programs in every state.
Institutional need-based grants — Most colleges award their own need-based grants from endowment funds and tuition revenue.

Scholarships: Free Money Based on Merit, Demographic, or Competition

Scholarships are typically awarded based on something specific to you — academic achievement, athletic talent, demographic identity, essay quality, or community service. They come primarily from private sources.

Categories of Scholarships

Academic merit scholarships — GPA and standardized test scores
Athletic scholarships — NCAA Division I and II only (no athletic scholarships at D-III)
Talent scholarships — Music, art, theater, dance, debate
Demographic scholarships — Specific to ethnicity, gender, religion, sexual orientation, disability, first-generation college student status
Career-specific scholarships — STEM, healthcare, education, trades
Essay competitions — One-time awards based on submitted essays
Local / community scholarships — Rotary, Lions Club, Kiwanis, religious organizations, employer scholarships
Military scholarships — ROTC, Pat Tillman, AFCEA, AMVETS
Corporate scholarships — Coca-Cola Scholars, Gates Scholarship, Google scholarships

Where the Lines Blur

Many awards mix elements of both:

Need + merit — Many "merit grants" at colleges are actually need-aware (only awarded if you also qualify for need-based aid).
State "merit scholarships" like Florida's Bright Futures and Georgia's HOPE Scholarship are often technically need-based grants in legal structure but awarded on academic criteria.
Pell Grant for high-achieving students — Pell is need-based but many high-achieving students qualify if their family income is low.

Practically speaking: do not get hung up on whether something is called a grant or scholarship. Apply to anything you qualify for that you do not have to repay.

The Three-Layer Free Money Strategy

The most successful students combine three layers of free money:

Layer 1: Federal and State Grants (Need-Based)

File the FAFSA. This single form unlocks Pell, FSEOG, Federal Work-Study, federal student loans, and most state grants. The FAFSA is free — never pay anyone to help you file it.

Layer 2: Institutional Aid (School-Specific)

Each college decides its own aid packages from endowment, alumni gifts, and tuition revenue. This is often the largest single source of aid for students attending private and selective public colleges. Some schools (Harvard, Princeton, Stanford) use 100% institutional grants for low-income students, no loans required.

Layer 3: Outside Scholarships (Private, Local, Demographic)

Apply to local scholarships first — they have the smallest applicant pools. A $1,000 scholarship from your local Rotary Club may have 5 applicants; a $10,000 national scholarship may have 50,000. Your odds are dramatically better at the local level.

Outside scholarship sources:

Fastweb, Scholarships.com, College Board search tools
Your high school counseling office's local scholarship list
Your community foundation
Your parents' employers (most large employers offer scholarships)
Religious congregations and faith-based organizations
Civic organizations (Rotary, Lions, Kiwanis, Jaycees)
Industry associations (if you have a career interest, search "[industry] scholarship")

Grants and Scholarships for Specific Groups

Adult Learners and Returning Students

PEO Program for Continuing Education (women returning to school)
Imagine America Adult Skills Education Program
Jeannette Rankin Foundation (low-income women 35+)
State workforce grants for retraining

Single Mothers

See our dedicated grants for single mothers guide for the full list including Patricia Stevens Fund, Bridge of Faith, Soroptimist, and more.

Felons and Justice-Involved Students

As of 2023, full Pell Grant eligibility was restored for incarcerated and formerly incarcerated students. See our grants for felons guide.

Veterans

GI Bill benefits, Yellow Ribbon Program, and various veteran-specific scholarships through AMVETS, Pat Tillman Foundation, and others.

Minorities

UNCF (United Negro College Fund), Hispanic Scholarship Fund, Asian & Pacific Islander American Scholars, American Indian College Fund. See our grants for minorities guide.

STEM Students

SMART Scholarship (DoD), CyberCorps Scholarship for Service, Goldwater Scholarship, NSF Graduate Research Fellowship, NIH Undergraduate Scholarship.

Common Mistakes

Skipping the FAFSA assuming you "won't qualify." Many federal grants and most institutional aid require the FAFSA regardless of family income.
Applying only to large national scholarships. Local scholarships have far better odds.
Paying scholarship search services. Free tools (Fastweb, College Board, Scholarships.com, your school's office) are as good as paid services.
Missing renewal deadlines. Many awards are renewable but require annual reapplication or maintenance of GPA/enrollment.
Underestimating award totals. Stacking 5 scholarships of $2,000 each = $10,000. Many students leave thousands on the table by stopping at 1–2 applications.

Tax Implications

Grants and scholarships used for tuition, fees, and required course materials are generally tax-free. Funds used for room and board, travel, or non-required expenses are taxable. See IRS Publication 970 for details.

Frequently Asked Questions

What is the main difference between a grant and a scholarship?
Grants are usually need-based; scholarships are usually merit-based. Both are free money you do not repay.

Are scholarships better than grants?
Neither is universally better. Apply for both.

Do you have to pay back grants or scholarships?
Almost never. See our complete guide for exceptions.

How do I find grants and scholarships?
Start with the FAFSA, then Fastweb/Scholarships.com, then your school's office, then local civic organizations.

Are scholarships for adults different?
Yes — and often less competitive. PEO, Imagine America, and Jeannette Rankin all support adult learners.

Browse our grant directory for additional opportunities including grants for businesses, individuals, and nonprofits.

Grants vs Scholarships: Key Differences Explained