Grants are usually awarded based on a student's financial situation. If a student's family income is below a certain threshold, they might qualify for more grant money from the federal government, state government, and their school. Some grants have specific requirements. For example, the TEACH Grant requires students to work in the education field after they graduate. Scholarships can be awarded based on need or merit, but they usually consider merit more than need. They're awarded based on a student's achievements, like high grades, test scores, or unique talents.