The fundamental difference between student-loans and scholarship is that student-loans refer to a type of financial assistance. As a student, you have to return the loan after a particular period. Also, a low-interest rate applies, especially for students.
On the other hand, scholarships are awards or benefits. As a result of scholarships, students can easily afford their college fees and other expenses related to their studies. In other words, scholarships aim to cover the cost of your studies. Students do not need to pay back the amount of scholarship.
The article explores the difference between student loans and scholarship.
Read More: How to Get Scholarship for Abroad Studies?
What is a Student Loan?
It is a form of loan that students receive as a credit so that they could pay the fee of their educational institute. The student’s loan also covers other study-related expenses such as accommodation charges and books expenses.
Interest rates are substantially lower, and students might get an extended schedule for repayment. The rescheduling depends on the form of a loan.
What is a Scholarship?
The scholarship is a type of financial grant provided to students to continue further studies. To get the scholarship, students have to meet specific criteria such as merit, talent, leadership qualities and other characteristics.
These are the benchmark set by the scholarship providers. Also, these reflect the social responsibilities and values of the organization, which offers a scholarship.
Student loans versus Scholarships
There are a few aspects that differentiate student loans from the scholarship:
Student Loans- How the loan providers Disburse Money?
If you take into account a student loan, the providers divide the total amount concerning semester or on an annual basis. In the next step, the loan providers pay the amount to your educational institute as your tuition fee.
In some cases, the student loan may include your food, accommodation, books and other study-related expenses. However, it depends upon the type of loan you have applied for. On a few occasions, you receive the remaining amount out of which, you will need to cover your accommodation expenses.
Scholarships- Disbursement of Money
If you consider scholarship, the way of disbursement depends upon the scholarship awarding body. In several cases, the college awards the scholarship. Therefore, the finance department of the educational institute directly pays the amount of scholarship.
If the third party is the scholarship provider, your college may get the Money directly. Alternatively, you may also contact the Money, but it depends upon the policy of the sponsor.
Student loans Eligibility Criteria
The federal institution directly funds student loans. To get a federal student loan, students need to fill out the Free Application for Federal Student Aid (FAFSA). You have to show your eligibility and fulfil the financial need requirements.
To get a private student loan, you need to prove your eligibility according to their criteria. Additionally, you have to give assurance to the lenders that you will be able to repay the loan. The lenders also consider some factors such as credit and income history.
Scholarship Eligibility Criteria
For scholarship, the eligibility criteria depend on the scholarship type and the sponsor. Different types of scholarships have other eligibility criteria.
Advantages and Disadvantages of Student Loans and Scholarships
Student Loans- Advantages
You are repaying the loans before or on the due date enables you to develop your credit score. It would facilitate you to get credits or personal loans quickly.
You can easily apply and get student loans. Similarly, interest rates are low for student loans.
Students get credit based on their financial needs. The academic achievement of students does not play any role in the process of getting loans.
Student Loan- Disadvantages
Although students can quickly get the loans, they need to repay that with interest, and in a particular period.
The interest rates make the debt amount more for the students. Sometimes, students have to cut their other expenses to repay the loan. The loan keeps accumulating until you pay back your debts.
When students are unable to manage the debt effectively, they face difficulties. In this way, they struggle to pay for other expenses.
Scholarships are free. It means you do not have to return any amount that you earned.
You can apply for more than one scholarship, and they’re not a restriction on several scholarships.
There are several forms of scholarships. This indicates that you have more chances to win one or more scholarships.
Getting a scholarship is an acknowledgement of your abilities and talent. After getting a scholarship, you get recognition. Winning a scholarship is a proud moment for a student.
Several scholarships are merit-related. You get it on the bases of the characteristics such as the background of students, community and others.
Selecting a scholarship and applying for it may be quite hectic. It is time-consuming. Students need to prioritize the scholarships that may be suitable for them carefully.
Scholarship slots are limited for every scholarship program. Every student cannot apply for the program. Students may have to face intense competition.
In some cases, the less deserving students may get the scholarship. The left-out ones may be more deserving.
Can students get both Scholarship and Student loans?
Students are eligible to apply for student loans event after securing a scholarship. However, they may face implications as getting a scholarship may affect their eligibility for a loan.
When you apply for a particular program in a college or university, they make a calculation about your financial need. Eventually, when you win a scholarship, your costs decrease, and in this way, the eligibility for your financial aid becomes less.
In some cases, when scholarships do not meet the financial need of a student, students may get some program to cover the remaining gap.
You have to pay back your student loan with a lower interest rate after a particular period. Scholarships are monetary awards for talented students. You do not have to repay the amount that you win.
Scholarships for International Students to Study Abroad
Many universities and organisations offers scholarships for students from all around the world. Some of them are given below:
University of St Andrews Sanctuary Scholarship, 2020
The University of St Andrews is glad to offer the St Andrews Sanctuary Scholarship for talented scholars wishing to enrol in the UK. The bursary is open for the students holding a high school certificate with excellent academic merit. The endowment will provide a stipend of up to £7,500 maintenance per year plus full tuition fees to the deserving candidates.
Provided By: University of St Andrews
Course: Undergraduate Degree
Award: Up to £7,500 per year + full tuition fees
Application Deadline: May 31, 2020
Undergraduate Global Excellence International Scholarship
The University of Exeter is pleased to provide the Undergraduate Global Excellence International Scholarship for the academic year 2020-2021. The program is open for studying the bachelor degree coursework at the university. Each successful scholar will get the amount worth up to £7,500, payable as a reduction in first-year international tuition fees.
Provider: University of Exeter
Deadline: 30 June 2020
Saints Sport – St Leonards College Masters Scholarships, 2020
Applications of Saints Sport – St Leonards College Masters Scholarships are now accepted from talented applicants at the University St Andrews. The bursary is available for the candidates having an undergraduate degree. The fellowship will provide a waiver in the tuition fees of the successful aspirants.
Provided By: University St Andrews
Course: Postgraduate Degree
Award: A waiver in the tuition fees
Application Deadline: August 12, 2020
International Undergraduate Student Bursary at University of Manitoba, Canada
The University of Manitoba is offering International Undergraduate Student Bursary for the academic year 2020-2021. The scholarships are open to studying the undergraduate degree program in all subject areas. Every winning student will get the amount worth up to $240,000 available annually. The award will be divided among eligible candidates according to their needs.
UCW Canada Undergraduate Scholarships for International Students, 2020
University Canada West is providing the L.O.V.E. Canada Undergraduate International scholarships for the academic year 2020/21. The scholarships are open for undergraduate students who are pursuing an Associate of Arts, Bachelor of Commerce, or Bachelor of Arts in Business Communication. The educational bursary will provide the following: For domestic Students: $3,000 and For international Students: $5,000
Provider: University Canada West
Award: $3,000 or $5,000
Deadline: June 30, 2020
UC Innovators’ Summer Start-Up Scholarship for International Students in New Zealand
The University of Canterbury is seeking highly motivated New Zealand and international students to take part in the UC Innovators’ Summer Start-Up program. To be eligible for this fund, the applicant must be enrolled full-time or part-time at the University of Canterbury at the time of application. Each successful candidate will get the amount worth up to $5,000.Advertisements
Provided By: University of Canterbury
Course: Bachelor and masters degree
Application Deadline: September 15, 2020
University of Otago International Master’s Research Scholarship in New Zealand, 2020
The University of Otago is granting the International Master’s Research funding for brightest candidates. The study program is designed to attract foreign students who want to pursue a master’s or research degree course at the university. The university will provide the amount of NZ$15,000 stipend per annum plus a tuition fee waiver.
Provider: University of Otago
Deadline: Applicants can apply anytime
Top Ten Universities for Study Abroad
|Ranking||University Name||Tuition fee|
|1||Massachusetts Institute of Technology (MIT)||48,452 USD|
|2||Stanford University||47,940 USD|
|3||Harvard University||47,074 USD|
|4||University of Oxford||9,250 GBP|
|5||California Institute of Technology (Caltech)||47,577 USD|
|6||ETH Zurich (Swiss Federal Institute of Technology)||1,229 CHF, International tuition 1,229 CHF|
|7||University of Cambridge||9,250 GBP, International tuition 21,732 GBP|
|8||UCL (University College London)||Domestic tuition 9,250 GBP, International tuition 17,710 GBP|
|9||Imperial College London||Local tuition 9,250 GBP|
|10||University of Chicago||53,649 US|