The main difference between scholarship and stipend is that a scholarship is a financial grant or assistance given to students to facilitate their education, whereas a stipend is money paid to apprentices and interns as monetary assistance.
Simply put, a scholarship is a type of financial assistance that helps students in their education. A stipend, on the other hand, is monetary assistance apprentices and interns get in exchange for their services.
Key Areas Covered
1. What is a Scholarship
– Definition, Features
2. What is a Stipend
– Definition, Features
3. Similarities Between Scholarship and Stipend
– Outline of Common Features
4. Difference Between Scholarship and Stipend
– Comparison of Key Differences
Key Terms
Scholarship, Stipend
What is a Scholarship
A scholarship is usually a financial aid given to a selected set of students in order to assist them in their further education. Every student does not get a scholarship even though he/she applies for one. Most institutes offer scholarships depending on different criteria like academic merit, athletic skill, financial needs, diversity, and inclusion. The criteria that determine whether a particular student is qualified for a specific scholarship are usually a result of the aim and the values cherished by the founder or the donor of the scholarship.
Both undergraduate and postgraduate students can apply for scholarships. However, it is wrong to interpret a scholarship as a monthly income. Instead, it is only financial aid that ensures that the student meets his or her living expenses and is capable of paying the tuition fees.
What is a Stipend
A stipend, on the other hand, refers to a fixed monetary allowance paid to interns or apprentices in exchange for their services. The amount of money in a stipend is usually lower than that of a salary.
Employers usually offer stipends with the intention of motivating and encouraging interns they have hired in order to give them the opportunity to acquire skills and knowledge in a particular field. Fresh employees who are under probation also get a stipend until they are fully eligible to become salaried employees. In this scenario, employers pay stipends more as compensation that facilitate the training process rather than a salary for an employee.
Similarities Between Scholarship and Stipend
- Both scholarship and stipend have a monetary value.
- Institutions or employers offer scholarships and stipends at regular intervals.
- Neither scholarships nor stipends are permanent salaries.
Difference Between Scholarship and Stipend
Definition
A scholarship refers to a financial grant given to students to facilitate their education, whereas a stipend is money paid to apprentices and interns as monetary assistance.
Taxable Nature
In some cases, a stipend can be a taxable payment, whereas a scholarship is not a taxable payment.
Interval
A stipend is usually a monthly allowance, while a scholarship can be a monthly or annual allowance or even a one time grant.
Beneficiaries
Scholarships are offered to students, i.e., undergraduates or postgraduates, while stipends are offered to interns or apprentices.
Donors
Generally, various academic establishments like universities and colleges offer scholarships, while employers who hire interns and apprentices offer stipends.
Conclusion
In conclusion, the main difference between scholarship and stipend is that a scholarship is a financial grant given to students to facilitate their education, whereas a stipend is money paid to apprentices and interns as monetary assistance. However, both scholarships and stipends are offered in order to facilitate students and interns.
Reference:
1. “What Is a Scholarship?” University of South Alabama.
2. Kagan, Julia. “What Is a Stipend?” Investopedia.
Image Courtesy:
1. “Money, business, cash, currency, coin, dollar, bill, buy, commerce, income, payment, savings, finance, wealth, profit, investment, earnings, pay, bills, dollars, paying” (CC0) via Pxhere
2. “Diploma-graduation-contract” (CC0) via Pixabay
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