Written by Christopher Parsons, M.A. in English, Founder of The College Planning Center. With over 25 years in education, Christopher has guided thousands of families through the admissions journey.
🧩 5 Key Notes
- Most students get some kind of help, so college isn’t as expensive as it seems.
- Scholarships give money to people who do well, while financial aid helps people who need it.
- It’s important to fill out the FAFSA, even for families who think they won’t qualify.
- Using a mix of scholarships, grants, and work-study can help you save a lot of money on college.
- Planning early and staying organized increases eligibility and reduces stress.
Understanding the Difference Between Scholarships and Financial Aid
A lot of students start college not knowing the difference between scholarships and financial aid, but this knowledge truly affects how much they pay for college. The College Planning Center notes that informed families make stronger financial choices—and it starts with knowing both options.
Scholarships – Money for Your Achievements
Scholarships are merit-based awards given for academic achievement, leadership, community service, athletic ability, or artistic talent. They do not need to be repaid.
Sources of scholarships include:
- Federal programs: ROTC scholarships
- State scholarships: Palmetto Fellows, LIFE, HOPE
- Institutional awards: Charleston Fellows Scholarship, Clemson Scholars Award
- Private scholarships: Local organizations, Fastweb, Scholarships.com
Scholarship Advice for Students
- Most scholarships allow early applications before college acceptance.
- Applying for multiple scholarships increases your chances.
- The College Planning Center recommends applying to 20–30 scholarships.
- Many scholarships exist for current college students (sophomores, juniors, seniors).
- Begin applying as early as 11th grade.
- Review GPA or participation requirements carefully.
Financial Aid – Supporting Your Financial Need
Most financial aid is need-based. Understanding how it works lets you combine it with scholarships strategically.
Types of financial aid include:
1. Grants
- Federal: Pell Grant, SEOG
- State: SC Need-Based Grant, Lottery Tuition Assistance
- Institutional: College-based grants
Do you have to repay grants?
→ No.
2. Work-Study Programs
- What is work-study? Part-time federal jobs for students with financial need
- High school work-study? Not typically federal; some part-time options may exist
- How to apply: Indicate interest on the FAFSA + apply for on-campus jobs
3. Student Loans
Loans should be the last option after grants and scholarships.
- Federal loans = lower interest, flexible repayment
- Subsidized vs. unsubsidized loans
- Use only what you need
FAFSA as the Gateway to Aid
- Add up to 20 schools to FAFSA
- Select “Yes” when asked: “Do you intend to pursue need-based financial aid?”
- Complete FAFSA as early as possible
The Real Cost of College — And How to Make It Manageable
College costs include tuition, housing, books, fees, transportation, and more—but most students do not pay full price.
Example: A University of South Carolina student may combine:
- State merit scholarships
- Pell Grant
- SC Need-Based Grant
- Institutional aid
- Private scholarships (e.g., Urban League of the Upstate)
- Emergency grants
5 Steps to Getting Scholarships and Financial Aid
(Recommended by the College Planning Center)
Step 1 — Start Your Research Early
- Begin in 11th grade or earlier
- Look for local, state, and national scholarships
- Use free sites: Fastweb, Scholarships.com
- Compare “scholarship vs. financial aid” opportunities
Step 2 — Complete FAFSA and CSS Profile
- FAFSA opens October 1
- CSS Profile required by many private colleges
- CSS Profile time: 45–90 minutes
- CSS vs. FAFSA: CSS is more detailed
Step 3 — Keep Track of Deadlines
- Use spreadsheets or planning tools recommended by the College Planning Center
Step 4 — Write Strong Applications
- Write strong, personal essays
- Request recommendation letters early
- Submit all documents before deadlines
Step 5 — Review and Follow Up
- Confirm each application was received
- To get more financial aid: Submit an appeal with updated documentation
Keep copies of everything
How to Handle Student Loans
- Federal loans: Lower interest, flexible repayment
- Private loans: Only after maximizing grants/scholarships
- Use tools like College Board Loan Calculator and CFPB resources
- The more scholarships you earn, the less you need to borrow
Five Key Things to Keep in Mind
Understanding the difference between scholarships and financial aid helps families save.
The College Planning Center provides guidance throughout the process.
Apply early for scholarships and financial aid.
Combine grants, scholarships, and work-study.
Stay organized and persistent.
🧠 FAQs - Scholarship vs. Financial Aid
Scholarships = merit-based.
Financial aid = need-based.
Both can be combined.
Only loans must be repaid.
Yes—depending on program eligibility.
Indicate interest on FAFSA and apply for campus jobs.
Junior year or earlier.
Go to “School Selection” → Add up to 20 schools.
Send a financial aid appeal with documentation.
- Grants
- Scholarships
- Work-study
- Loans
No—CSS is used mainly by private schools.
Final Thoughts
Knowing the difference between scholarships and financial aid can save thousands. The College Planning Center helps students combine multiple funding sources, reduce out-of-pocket costs, and avoid unnecessary debt.
Tip: Stay consistent, organized, and apply widely—one extra scholarship can cover a semester of books or more.
Special thanks to Christopher Parsons for writing this blog post.
Christopher has a strong educational background, including Doctoral studies in English Literature and Creative Writing, a Master’s Degree in English, and a Bachelor of Arts Degree in English and History. He also has a background in Mass Communications and Public Relations/Marketing.
He has successfully won scholarship offers from prestigious schools and over $250,000 in grants and scholarships. His real-world personal experience resonates well with today’s students.
One Response
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