Guide 01 · Basics
Grant, scholarship or loan: the one question that tells them apart
Aid offers use similar words for very different things. One question sorts most of them.
summary
- Ask first: do I have to pay this back? Grants and scholarships generally do not need to be repaid; loans do.
- Work-study is a job. You earn it by working, so it is not a lump sum in your account.
- Always read the conditions. Even money that is not repaid can carry rules about enrollment and grades.
The question
When a letter, email or web page lists several kinds of help, start with one question for each line: do I have to pay this back? The answer sorts most items into two piles before you read any fine print.
The four common kinds
| Kind | Repaid? | How it usually works |
|---|---|---|
| Grant | Generally no | Given toward costs when you meet the program’s rules. Often tied to enrollment level. |
| Scholarship | Generally no | Awarded for a stated reason, such as achievement, a field of study or background. |
| Work-study | No, it is earned | A part-time job whose pay helps with costs. You are paid for hours worked. |
| Loan | Yes, with interest | Borrowed money with repayment terms. Read them before accepting. |
Where people get confused
Two traps are common. First, some pages use grant as a catch-all word that quietly includes loans. Second, an award can be listed as one number even though part of it is a loan. If a total looks large, ask which parts are repaid.
Conditions still apply
“Not repaid” is not the same as “no strings.” Many awards expect you to stay enrolled, make satisfactory academic progress, or renew a form each year. A school’s financial aid office can explain the conditions that apply to your own award.
General information only. Tuitnova is not a school, lender, scholarship provider, or financial aid office, and this is not financial, legal, or tax advice. Programs, rules, and dates vary and change; check with your school’s financial aid office or the official program website.