How student aid actually works

Grant

A grant is a type of aid that is not a loan and that you typically don't have to pay back. It's usually awarded based on financial need and/or other factors.Source:Ontario, OSAP definitions (opens in a new tab)

Loan

A loan is money you borrow and must pay back, with interest. With OSAP you're borrowing from the governments of Canada and/or Ontario.Source:Ontario, OSAP definitions (opens in a new tab)

Scholarship

A scholarship is aid you typically don't have to pay back, usually awarded based on academic merit and other factors.Source:Ontario, OSAP definitions (opens in a new tab)

Bursary

A bursary is financial aid that isn't a loan and that you typically don't have to pay back. It's usually awarded based on financial need and other factors.Source:Ontario, OSAP definitions (opens in a new tab)

Work-study

Your college or university may offer work-study, which, like its bursaries and scholarships, you don't have to pay back. Ask your financial aid office.Source:Ontario, loans, grants, scholarships and bursaries (opens in a new tab)

One application, many programs. You don't apply for federal grants on their own. You are automatically assessed when you apply for student aid with your province or territory.Source:Canada.ca, grants and loans for full-time students (opens in a new tab)

When an OSAP grant can become a loan. Normally, OSAP grants don't need to be paid back. But all or part can be converted into a loan if:

• you withdraw or stop taking the minimum course load in the first 30 days and don't return full-time within 5 months in the same academic year;
• a reassessment (for example, dropped courses or unreported income) shows you weren't entitled to it; or
• income can't be verified within one year (Ontario Student Grant only).

So answer every document request quickly.Source:Ontario, why your grant could become repayable (opens in a new tab)

Grants, work-study, loans and scholarships help make college or career school affordable.Source:StudentAid.gov, types of aid (opens in a new tab)

Grant

A grant is financial aid that doesn't have to be repaid, unless, for example, you withdraw from school and owe a refund.Source:StudentAid.gov, types of aid (opens in a new tab)

Loan

A loan is money you borrow and must pay back, with interest.Source:StudentAid.gov, types of aid (opens in a new tab)

Scholarship

Scholarships can be based on merit, on belonging to a particular group, or on financial need.Source:StudentAid.gov, financial aid dictionary (opens in a new tab)

Work-study

Federal Work-Study provides part-time jobs for undergraduate and graduate students with financial need, so they can earn money for school. It's open to full-time and part-time students, at schools that take part; ask your financial aid office whether yours does.Source:StudentAid.gov, Federal Work-Study (opens in a new tab)

When you might have to repay a grant. You might have to repay all or part of a federal grant, for example if you withdraw early, your enrollment drops (say, from full-time to part-time), outside scholarships reduce your need, or you don't complete a TEACH Grant service obligation.Source:StudentAid.gov, grants (opens in a new tab)

Federal aid rules are changing. Check StudentAid.gov for the latest.

They exist. But check who runs each one, and read its own rules. Don't pay anyone to apply for you. See our checked scholarship list