Education loan vs Scholarships Vs Grants: Everything you need to know

Not only does education hold the power to transform the world, its potential in opening a world of opportunities for an individual can’t be doubted either. It is, thus, regrettable that higher education is fast becoming a privilege that many are unable to afford. The rising cost of higher education robs many a bright student from realizing their potential. Financial reliance on education loan, scholarships and grants is a gripping concern for many.

Scholarship Registration and Login

Without external financial support, higher education can be beyond reach for a large section of the population. Thankfully, however, there are several options through which a student can receive external funding for their education.

In this article we will look at the three most popular options, evaluating them for their relative pros and cons, to help you understand them better.

Discussion: Education Loan vs. Scholarships and Grants

1. EDUCATION LOAN

The most common source of funds for students looking to pursue higher education is an Education Loan. Study loans are easily available in India from multiple public banks, private banks, and NBFCs. With attractive rates of interest, simplified processes, tax benefits and flexible repayment options, education loans can be a saviour for students who can’t pay for their education. With the boost to their career prospects that the education would provide them, they could pay back easily in the future.

PROS:

– Loans are easily available from several public and private financial institutions. Depending on the amount you need to borrow, you may be able to avail a loan without any collateral as well

– Education loans make higher education accessible to people from all parts of society, thanks to government subsidies on loan interest for the financially underprivileged

Career Assessment Test

CONS:

– Do remember, a loan is a debt that needs to be repaid, even if it is over a period of time

– It limits a student’s options to pursue further studies after their degree if they have an education loan, and necessitate their joining the workforce early

2. GRANTS

Scholarships and Grants are commonly confused terms used interchangeably. The word grant has a wide connotation and can refer to any sort of financial aid offered. In the education sphere, a grant is generally referred to a grant of money for a specified purpose.

These could be research grants to inspire students to focus their research on a specific field, or study grants encouraging students to join a certain university. The eligibility criteria for a grant is generally strict. That’s where the difference between Scholarships and Grants lie; in the limitation of their accessibility.

Buddy4Study - Education Loan

PROS:

– A grant is a monetary award that doesn’t need to be repaid

– There are grants for non-academic purposes as well. Non-Academic seekers can avail such grants

CONS:

– Since they’re for a specified purpose, they often come with strings attached

– Many grants are only offered to organizations and institutions rather than individuals

3. SCHOLARSHIPS

There are hundreds of scholarship opportunities for students to choose from, and thousands of crores of scholarship funds on offer for Indian citizens. You could qualify for a scholarship by virtue of your academic achievements, financial status, your social status, or even by your domicile or your religion. No surprises, hence, that scholarships are the most sought after financial aid by students pursuing higher education.

PROS:

– There are tons of available options for students to choose from with varying eligibility criteria. Using scholarship search engines like Buddy4Study can help students quickly identify all matching scholarships and grants as well.

– If you land a prestigious scholarship, it could cover your entire education expenses, including full tuition, boarding, lodging, living expenses, allowance, etc. The best part? None of it needs to be repaid!

CONS:

– Competition for most scholarships and grants is quite high, and you must prove your merit or need, depending on the scholarship’s eligibility criteria, before you can be awarded

– All Scholarship awards come with the requirement of necessary academic excellence. A scholar needs to maintain a certain academic performance so that the scholarship can be renewed every year

Disclaimer

  1. Source of Information: Buddy4Study app compiles details on scholarships/fellowships from government websites and private scholarship sources. Links to the official sources accompany each listing detail pages.
  2. Non-affiliation: The Buddy4Study app is not associated with any government entity in India or elsewhere. When featuring government scholarships, we rely on publicly accessible information from central and state government websites in India.

Scholarships For

Upto Class 8 Class 1 to10 (Pre-Matric) Class 9 to 10 (Pre-Matric) Post-Matric(Class 11-12) Class 11 & 12 Class 12 passed Polytechnic/Diploma/ITI ITI Diploma/Polytechnic Graduation Post-Graduation Medical Engineering Girls NSP Portal Income Based SC/ST/OBC Law

Scholarship by State

NSP Scholarships Andhra Pradesh Arunachal Pradesh Assam Bihar Chandigarh Chhattisgarh Delhi Goa Gujarat Haryana Himachal Pradesh Jammu & Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Manipur Meghalaya Mizoram Nagaland Odisha Punjab Rajasthan Sikkim Tamil Nadu Telangana Tripura Uttar Pradesh Uttarakhand West Bengal

Scholarships A to Z

Abdul Kalam Scholarship Aicte Internship AICTE NSP Scholarships Aicte Scholarship Aicte Swanath Scholarship Aikyashree Arunachal Pradesh scholarship Assam Scholarship Atul Maheshwari Scholarship Begum Hazrat Mahal National Scholarship Bihar Scholarship BYPL Sashakt Scholarship CBSE Scholarship Central Sector Scholarship CG Scholarship CG Scholarship Portal Chandigarh Scholarship Colgate Scholarship DCE Scholarship Delhi Scholarship Dhirubhai Ambani Scholarship Status of the Digital Gujarat Scholarship Disability Certificate Domicile Certificate Dr. Ambedkar Scholarship Dr. Ambedkar Scholarship, Haryana DRDO Scholarship Scheme For Girls DTE Scholarship in Maharashtra E Grantz E Grantz Login E Grantz Scholarship Status Kalyan Bihar Portal E Kalyan Status Epass Karnataka Ericsson Empowering Girls Scholarship Programme E. Samaj Kalyan Fellowships in India Gokdom Government Scholarships GSK Scholars Programme Gujarat Scholarship Haryana Scholarship Haryana Scholarship Portal HDFC Badhte Kadam Scholarship How to get a Caste Certificate HP Scholarship IET-India Scholarship Awards Immigration-Friendly Countries Income Certificate Indira Gandhi Single Girl Child Scholarship Inspire Scholarship Ishan Uday ITI Scholarships Jammu and Kashmir Scholarship Jharkhand Scholarship Jnanabhumi Application Status Kanyashree Karepass Karnataka Scholarships Kotak Kanya Scholarship Ladli Yojna Legrand Scholarship Mahadbt Mahadbt Login Mahadbt Scholarship Status Maharashtra Pre-Matric Scholarship Maharashtra Scholarship Manipur Scholarship MBA Scholarships in India MCM Scholarship Means Scholarship Meghalaya Scholarships Merck India Charitable Trust Scholarship Programme Merit Cum Means Scholarship For Minorities MHRD Scholarship MI Scholarship MOMA Scholarships MP Scholarship MP Scholarship Kyc MP Scholarship Portal MP Scholarship Status MYSY Scholarship Nabanna Scholarship Nagaland Scholarship National Scholarship Portal National Scholarship Portal (NSP) NMMS NSP Login NSP Renewal NSP UGC Scholarships Oasis Scholarship Oasis Scholarship Status OBC Scholarships Odisha Scholarship Olympiad ONGC Scholarship PFMS Login PFMS Scholarship Phd Scholarships PMRF PM Scholarship PMSSS Post Matric Scholarship Post-Matric Scholarship for Minorities Pragati Scholarship Pre-Matric Scholarship Pre-Matric Scholarship for Minorities Prerana Rajasthan Scholarship Rolls-Royce Unnati Scholarship Saksham Scholarship Programme for Drivers Children Saksham Scholarship Scheme Santoor Women's Scholarship SBI Asha Scholarship Programme SBI Education Loan SBI General Suraksha Support Scholarship Programme Schaeffler-India Hope Engineering Scholarship Scholarship Application Dos and Don'ts Scholarship Form Scholarships for Diploma Courses Scholarships for Indian Girls and Women Scholarships for North Eastern Students Scholarships for PG Students Scholarships for Undergraduates Scholarships in India Scholarship Status SC Scholarship SC ST Obc Scholarship Sensodyne Ida Shining Star Scholarship Programme Sitaram Jindal Scholarship SSP Scholarship ST Scholarship SVMCM Scholarship Eligibility Swami Vivekananda Scholarship Swami Vivekananda Scholarship Technip Energies India Scholarship Programme Telangana Scholarship The Tata Capital Pankh Scholarship Programme Top Scholarships for Medical Students Top Scholarships For Students Of Andhra Pradesh Tripura Scholarship Ugc Scholarship UP Post-Matric Scholarships UP Pre-Matric Scholarships UP Scholarship UP Scholarship Correction UP Scholarship Login UP Scholarship Registration UP Scholarship Renewal UP Scholarship Status Uttarakhand Scholarship Vidyalakshmi Portal Virchow Scholarship Programme VHTC WBMDFC West Bengal Scholarship