Curious about College planning
What is the difference between grants and loans?
Grants and loans are both financial assistance options, but they differ in some key ways.
Grants are financial awards that do not need to be repaid, and are typically awarded based on financial need or academic merit. In India, government agencies, foundations, and private organizations provide grants to students to support their education expenses. Some popular grants in India are the National Means cum Merit Scholarship Scheme, the Maulana Azad National Scholarship for Minority Students, and the Tata Scholarship.
Loans, on the other hand, are borrowed money that must be repaid with interest. There are different types of loans available to students in India such as education loans, personal loans, and credit card loans. Education loans are specifically designed to cover the costs of education and are offered by many banks and financial institutions in India.
While grants are preferable to loans as they do not need to be repaid, they are usually more difficult to obtain and may not cover the full cost of education. Loans, however, can be helpful in bridging the gap between the cost of education and available resources, but come with the burden of debt. It is important for students to consider their individual circumstances and financial goals before choosing between grants and loans.