20 Misunderstood Scholarship Terms Explained

20 Misunderstood Scholarship Terms Explained

Sometimes, applying for scholarships can feel like learning a new language. As a first-time applicant or a returning student, make sure you understand some of these scholarship terms.This will help you make smarter choices and avoid missing great things opportunities.

However, here are 20 scholarship terms that are often misunderstood and what they actually mean.

1. Endowment: A fund created by donors where the main amount (the principal) is kept intact, and only the investment earnings are used to fund scholarships year after year.

2. Renewable Scholarship: A scholarship you can receive again each academic year  but only if you maintain specific academic or conduct standards.

3. Stipend: A fixed monthly or periodic payment meant to cover your living expenses. It’s not the same as tuition coverage.

4. Fellowship:A financial award, usually for postgraduate or research students, that supports study, research, or professional development.

5. Grant :Free financial assistance (not a loan) often awarded based on financial need rather than academic performance.

6. Bursary: A smaller form of financial aid, often provided by universities or local bodies, to help cover living costs or educational materials.

7. Letter of Motivation: A personal essay where you express your passion, goals, and reasons for applying for the scholarship. It shows your why.

8. Statement of Purpose (SOP):  A detailed essay that outlines your academic interests, research goals, and how the scholarship aligns with your career path.

9. Letter of Recommendation (LOR): A formal letter written by someone (like a lecturer, mentor, or employer) who can vouch for your abilities and character.

10. Need-Based Scholarship: Awarded to students who demonstrate financial hardship or low income, regardless of grades.

11. Merit-Based Scholarship: Given to students based on achievement, academic excellence, leadership, or exceptional talent regardless of financial background.

12. Host Institution: The university or organization where you’ll study under the scholarship (this may differ from the sponsoring body).

13.  Shortlisting:The process of narrowing down applicants to a smaller group before final selections or interviews.

14.  Full-Ride vs. Full-Tuition: A full-ride scholarship covers all expenses such as tuition, accommodation, meals, travel, etc.

A full-tuition scholarship covers only your school fees.

15. Conditional Offer: A scholarship or admission offer that becomes valid only when you meet certain requirements  such as a language test score or academic result.

16. Eligibility Criteria: The rules that define who can apply — like age, nationality, GPA, or course of study. Always check these carefully before applying.

17. Deferral: Permission to postpone the start of your scholarship or study period, usually for up to a year, due to personal or logistical reasons.

18.  Bond Agreement: A legal agreement requiring you to work for the sponsoring organization or stay in a particular country for a specified period after graduation.

19. Cost of Attendance (COA): The total estimated cost of studying at a particular school including tuition, housing, books, meals, and personal expenses.

20. In-Kind Support: Non-cash benefits that come with your scholarship, like free housing, mentorship programs, or research materials.

The next time you come across a scholarship announcement, you will read it like a pro not a puzzled applicant.

Full understanding of these terms gives you confidence and clarity when applying for scholarships. It helps you know what is being offered, what is expected, and how to position yourself as a strong candidate.