If you’re a student trying to fund your education, you’ve probably come across terms like scholarships, bursaries, and student loans. While they all help you pay for school, they’re not the same, and mixing them up could cost you money or land you in debt.
Difference Between Bursaries, Scholarships, and Student Loans
In this comprehensive guide, we explain:
- What each term means
- Who qualifies for each
- Pros and cons
- Where to find them
- Tips on how to apply wisely
By the end of this article, you’ll know exactly which one is right for you and how to get it.
What is a Scholarship?
A scholarship is financial aid awarded to a student based on merit, academic performance, leadership, talent, or other achievements.
Key Features:
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Does not need to be repaid
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Based on grades, leadership, or special skills
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Often competitive
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Offered by universities, governments, companies, or NGOs
Examples:
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Chevening (UK) – based on leadership and academic excellence
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Mastercard Foundation – combines merit and need
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MTN Scholarship – based on academic results (Nigeria)
Who Should Apply?
Students with strong grades, talents (sports, music, coding, etc.), leadership roles, or community service experience.
What Is a Bursary?
A bursary is financial support given to students based on financial need, not just academic performance.
Key Features:
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May or may not need to be repaid
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Usually given to students from low-income families
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Some bursaries require community service or working for the sponsor after graduation
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Offered by government departments, state boards, banks, and religious organizations
Examples:
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Lagos State Bursary – for indigent students
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HELB bursary (Kenya) – for university students with financial hardship
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South African NSFAS – includes bursary support for tuition and living
Who Should Apply?
Students from low-income households, orphans, or those with proof of hardship who need help covering tuition, fees, or accommodation.
What Is a Student Loan?
A student loan is money borrowed to pay for education that must be paid back after graduation—often with interest.
Key Features:
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Must be repaid, usually after graduation
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May include interest (though some are interest-free or low-interest)
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Given by governments, banks, or private lenders
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Used for tuition, living expenses, books, and more
Examples:
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Nigeria Education Loan Fund (NELFUND)
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HELB Student Loan (Kenya)
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NSFAS (South Africa) – offers both bursary and loan elements
Who Should Apply?
Students who can’t access scholarships or bursaries but are confident they’ll secure employment after graduation to repay the loan.
Scholarships vs. Bursaries vs. Student Loans – Quick Comparison Table
Feature | Scholarship | Bursary | Student Loan |
---|---|---|---|
Based on | Merit, achievement | Financial need | Open (must repay) |
Repayment required? | ❌ No | ❌/✅ Sometimes | ✅ Yes |
Source of funds | NGOs, unis, govts, private | Govts, states, religious | Govts, banks, lenders |
Academic requirement? | ✅ Yes | Optional | Optional |
Service bond attached? | Sometimes | Often | Often (repayment) |
Ideal for | High achievers | Poor/low-income students | All students with repayment plan |
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If your grades are excellent and you have leadership/talent: go for scholarships
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If you struggle financially and have basic academic performance: apply for bursaries
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If you have no other option and are confident in future earnings: consider loans
You can apply for all three at once, just be honest about your background and needs.
Where to Find Each Funding Type
📚 Scholarships:
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ApplyScholars.com (your site!)
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University websites
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Government portals (Chevening, DAAD, etc.)
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International NGOs (Mastercard Foundation, Ford Foundation)
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Corporate programs (Shell, NNPC, MTN)
💼 Bursaries:
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State education boards
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Local government offices
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Religious or community foundations
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University bursary departments
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Ministry of Education websites
💳 Student Loans:
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NELFUND (Nigeria): https://nelf.gov.ng
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HELB (Kenya): https://www.helb.co.ke
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NSFAS (South Africa): https://www.nsfas.org.za
Mistakes to Avoid When Applying
- ❌ Applying for the wrong type of funding
- ❌ Submitting fake income documents
- ❌ Copying essays or motivation letters
- ❌ Missing deadlines
- ❌ Ignoring loan terms (repayment, interest, etc.)
Related Post: How to Write a Winning Motivation Letter
Tips
- Always read eligibility and instructions carefully
- Prepare all your documents ahead of time
- Start your applications 3–6 months before the academic year starts
- If you qualify for multiple types, apply to all
- Don’t wait for someone to tell you—search and apply proactively
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