Scholarships and Student Loan are all financial assistance set up to aid students, especially in their academic careers.
There are differences between these two in as much as they have similar objectives which is to financially assist students.
To differentiate between them is difficult for some students, some mistake scholarships for student loans while some mistake student loans for scholarships. Read this to see the differences between the two and all their similarities.
What Is A Scholarship?
A scholarship is a type of financial assistance awarded to students who merited it to aid them in their academic journey.
There are different types of scholarships such as full-tuition scholarships, full-ride scholarships, International scholarships, etc.
Scholarships can be awarded by anyone or some people who feels the need to assist students financially, be it an Individual, Company, Foundation, or Government. The primary aim is to ensure that students’ financial needs are well taken care of.
How Scholarship Works
1. Scholarships are Applied For, and most times require some things like essays, letters, resumes, etc.
2. Scholarships are gotten and awarded by Merits, a student must meet up to the requirements before it will be awarded to any student. It is also talent-based, you can win a scholarship with how talented you are in a specific field.
3. Scholarship varies in type, some scholarships are only awarded once with the cash price, there’s also one that takes care of a student’s tuition fee known as A Tuition Scholarship, and theirs also one that takes care of all students’ expenses known as A Full Ride Scholarship.
4. Scholarships are mainly for citizens unless it’s an International Scholarship that accepts international students.
5. There are Government Scholarships, Private Scholarships, and Organization/Colleges Scholarships.
What Is A Student Loan?
A Student Loan is a type of financial assistance that is not awarded to students but is lent to them to help them in the long run of their academic studies.
It is a type of loan that students borrow to pay back in a given period.
This type of loan known as student loan is specifically for students, and it cannot be assessed by nonstudents.
How Student Loan Works
1. Atudent loan is also applied for, and its requirements may include reasons for application.
2. Student loans are lent to students and not awarded.
3. Students are expected to pay back within a given period.
4. Student loans may require a guarantor before a loan can be approved.
5. It is mostly available for eligible citizens and non-citizens.
6. There are two types of student loans, which are Federal and Private Loans.
Similarities Between Scholarships and Student Loans
1. Scholarships aim to aid students achieve their academic purpose which is as same purpose as student loans.
2. Scholarships and Student Loans have certain criteria or requirements expected for you to meet to be eligible.
3. Scholarships and Student Loans require some of your details to go in with the assistance.
Differences Between Scholarships and Student Loans
1. Scholarships are awarded and students are not expected to pay back while Student Loans are lent and are expected to be paid back.
2. Scholarships are based on merits or talents while Student Loans are not based on that, you just have to meet their requirements.
3. Scholarships are often very difficult to get while Students Loan are not as difficult to get as Scholarship.
Scholarships and Student Loans Which Is Advisable To Go For?
Both Scholarship and Student Loans have their benefits, but as a student who is on a loan, there is a kind of tension that leaves you because there are certain implications to be met if a loan is not paid. There is also an accumulation of interest expected of you to pay when returning a loan.
All these are not the same in Scholarships, so as a student, you are advised to go for scholarships, unless you weren’t awarded a scholarship you can now go for a student loan as a second choice.
Conclusion
Scholarship is more advisable for a student to partake in, you are only advised to go for a student loan when all other options have been exhausted, and you are left with no choice but to apply.
Hopefully, we have enlightened you on the difference between a scholarship and a student loan.
