Scholarships are similar to grants in that money can be awarded to a student for academic achievement or success, such as being an honor student, winning essay contests, or participating in a certain number of hours in community service projects. Typically, scholarships are given by institutions, organizations, companies, or on behalf of prestigious people based on the student’s academic merit as determined by the standards for each scholarship. The eligibility requirements for scholarships vary, but in most cases, students will follow the same general process: They will usually complete an application, provide financial and background information, and submit proof of certain academic achievement.
Scholarships do not have to be repaid, and are usually paid directly to the student’s school. There are typically restrictions on what a scholarship can help cover. For example, scholarships may be applied towards tuition costs, but usually cannot be used for textbooks or other outside expenses related to schooling.