In addition, the processes of investigating and applying for the two are vastly different. To fill you in on the ins and outs of financial aid is Margaret Betts. Margaret Betts has served as the Coordinator of Financial Aid Information Services at Oklahoma State University, Stillwater, Oklahoma since 1989. She earned her bachelor's degree in Counseling and Guidance from East Texas State University in 1980 and began her work in higher education in 1982 as a residence hall director. GIFT AID Gift aid does not need to be paid back.
Scholarships provide funds toward tuition, fees, and other required educational expenses.
Most scholarships do not provide funds for living expenses. Some forms of gift aid, such as ROTC scholarships and certain medical fellowships, require a few years of service in exchange for the financial aid. If one fails to complete the service requirement, then one must pay back the award. But most forms of gift aid do not need to be repaid and do not include a service requirement. Loans are normally repaid with interest.