The main difference between student grants and student loans is whether the funds received by the student must be repaid.    In the case of financial assistance, such as scholarships and grants, the recipient is not traditionally required to repay the funds received.  Conversely, student loans require the recipient to repay the money with interest.    Given that the majority of students graduate with student loan debt, financial assistance options such as scholarships and grants play an important role in reducing the debt recipients have to repay. can do.  Scholarships and grants come from a variety of public and private sources, both large and small.