A scholarship is a form of financial aid awarded to students for further education. Scholarships are typically awarded based on a set of criteria such as academic merit, diversity, and inclusion, among others. While the terms scholarship and grant are frequently used interchangeably, they are distinctly different. Where grants are offered based exclusively on financial need, scholarships may have a financial need component but rely on other criteria as well. Scholarships can come from various sources, including clubs, organizations, charities, foundations, businesses, colleges and universities, the government, and individuals. Scholarships can be merit-based, need-based, or a combination of both, giving students opportunities to continue their education without taking on a significant financial burden. The most common scholarships may be classified as:

• Merit-based: These awards are based on a students academic, artistic, athletic, or other abilities, and often a factor in an applicants extracurricular activities and community service record. Most such merit-based scholarships are paid directly by the institution the student attends, rather than issued directly to the student.
• Need-based: These awards are based on a students financial need and are often awarded by the government or other organizations.

Scholarships can provide a one-time lump sum, or some scholarships are renewable, meaning students can use them to cover several semesters or even several years of their education. The funds are used to defray the costs of tuition, books, room, board, and other expenses directly tied to a student’s educational cost through the university. Scholarships are typically awarded using a variety of factors, including but not limited to academic achievement, departmental and community involvement, employment experience, areas of study, and financial need.