"Scholarship" is used to mean merit-based kinds of grants essentially, so for good students. Whereas the word "Grant" used generally implies only the need-based versions. It's a bit confusing. There is a national system called "financial aid" where a family applies to the govt with their tax forms and their ability to pay is assessed. Then the govt offers grants and subsidized loans to cover costs. States will also supplement the grants with their own grants, and the school itself does too. Scholarships are just offered directly by the school based on some kind of competitive selection.