Student Loan and scholarship both involve cash or funding for academic reasons. These two terms are often encountered by students seeking some financial support for their education. This terms may sound alike because they share some similarities but there is a huge difference between these two.
Lets you get it wrong, we intend to put straight the difference between these two terms. If you have ever been in search of any financial aid, then you must have come across these two words. People get it wrong most times by thinking they mean the same thing. For this reason, we have put together a compressive post to help differentiate these terms.
What is Student Loan?
A student loan is a money, property or other materials given to students for a future repayment at the loan valued amount, along with interest of some financial charges. A student loan can come in a specific amount or as open-ended up to a ceiling limit.
What is a Scholarship?
A scholarship is usually an award of financial aid for a student in order to assist the continuation of their education. This is usually awarded based on certain criteria which normally matches the values and purposes of the donor.
Difference Between Student Loan and Scholarship
Student loan is often money borrowed by students to pay for post-secondary education. This includes payment of tuition fee, books acquisition, living expenses and other learning materials.
Students loan are refundable. Meaning, you are required to pay the money loaned back at a stipulated period of time.
Student loan often comes with interest. You have to pay some additional amount as interest to what the amount you borrowed. The interest amount could be big or small depending on the terms.
Scholarships are usually free and base on merit. There is no interest attached to scholarships. Everything is absolutely free just if you meet the necessary requirement.
Student loans do not require some certain academic merits. There is no screening as per educational achievement before loans are given. As soon as your status as a student has been confirmed then you are entitled to a loan.
In scholarship, the amount of money or product given out is based on the donor budget. Beneficiaries have no influence in scholarship amount or products.
Students have the freedom to apply for a loan of the various amount within the approvable range. You choose the loan amount you wish to get in accordance with your need. If it is within the lender’s amount range, then you are almost assured of getting the exact amount requested for.
Similarities Between Student Loan and Scholarship
Student loan and scholarship are both financial support given to a student to help fund their education. They both cover tuition fees, books acquisition, living expenses and other learning materials.
They both require an application and pass through some process. Or sure, you definitely have to make a move for both of this to happen. The scholarship process involves an application, essay and at times interview before being awarded. Loan equally involves application and some other process before receiving the fund.
Hope you have learnt the difference between student loan and scholarship? Just as promised, we took it part by part to ensure give you just exactly when you deserve.