Difference Between Scholarships and Fellowships: What to Choose for Abroad Studies?

Sharleen Kapoor

10 min read • Aug 1, 2026

The National Postsecondary Student Aid Study (NPSAS) says the USA awards about 1.7 million scholarships each year. This covers about 8% of undergraduate students in the country. For fellowships, the Fulbright Program grants about 1,900 each year. The National Science Foundation’s (NSF) Graduate Research Fellowship Program (GRFP) awards about 2,000 fellowships across 140 countries.

Scholarships and fellowships are both financial aids. They help an individual complete their education or research. However, students often confuse these two options while researching their study abroad journey. If you want to fund your education abroad with scholarships or fellowships, you must understand the difference between scholarship and fellowship.

What is a Scholarship?

A scholarship is a financial award that helps students pay for their education. Unlike education loans, a scholarship recipient does not have to repay the amount. Scholarships can majorly be divided into two categories: need-based and merit-based.

A merit-based scholarship is awarded to those who have demonstrated academic excellence in the past. Many scholarships require recipients to maintain their GPA during the award. If one fails to do so, they may lose the award. Many scholarships offered by universities automatically consider every incoming student for the award. If specific government or public organisations offer the scholarships, students must apply separately.

What is a Fellowship?

Fellowships are financial grants. They help students fund advanced study or research in a specific field. Fellowship recipients are usually those who have finished basic education. They seek to deepen their expertise through specialised research. Fellowships cover the cost of research and often come with a stipend as well. This stipend helps the recipients cover their living expenses. Fellowships generally tend to be more competitive in nature than scholarships.

Also Read: Types of Scholarships to Study Abroad for International Students

Key Differences Between Scholarships and Fellowships

Here are some key differences between a scholarship and a fellowship that you must know. Please note that the table below contains general information, and the specific details may vary.

Characteristic	Scholarships	Fellowships
Purpose	Financial aid or awards that students receive to support their educational expenses, including tuition fees, books, accommodation, transportation, and food.	Support advanced research, study, professional development in a specific field.
Award amount	The average scholarship amount in the USA is approximately $7,400. However, this may vary greatly depending on the university, department, student profile, etc.	Fellowships usually have a higher award amount than scholarships. For instance, the NSF Graduate Research Fellowship Program (GRFP) offers an education allowance of $12,000 and a yearly stipend of $37,000.
Eligibility	Scholarships are generally awarded to students pursuing undergraduate or graduate degree programs. Selection criteria include excellent academic merit, financial need, and other factors.	Students who are at a more advanced stage in their professional or academic careers – postdoctoral students, graduate students, or professionals – generally qualify for a fellowship.
Funding source	Government programs, educational institutions, and private organisations typically fund scholarships.	Research organisations, academic institutions, government agencies, or foundations typically fund fellowships.
Duration	Usually covers the entire duration of an academic programme (e.g., 1-4 years), depending on the scholarship terms.	Depending on the fellowship scope, it may last for a short period (a few months) or extend to several years.
Award coverage	Scholarships can cover part of your tuition to your entire education cost. Generally, the award can cover tuition, accommodation, food, books, etc.	A stipend or salary through fellowships covers research costs, living expenses, and additional expenses like health and travel insurance. Terms and conditions may vary.
Focus area	Scholarships generally have a broad focus and include various fields of study. More than 33% of private scholarships are awarded to STEM students in the USA.	Since fellowships are given to students from research-intensive fields, STEM programmes are the main focus. More than 70% of NSF GRFP fellowships are dedicated to STEM fields.
Application process	Scholarships offered by a university do not generally require separate applications.	Fellowships may require students to prove their professional achievements and provide a detailed research proposal, statement of purpose, references, etc.
Selection criteria	Merit-based scholarships judge applicants based on past academic performance and future potential. Need-based scholarships judge candidates based on their financial situation. Some scholarships like Rhodes also require excellence in extracurriculars and leadership.	Fellowships judge applicants based on their professional experience, research potential, and goals.
Outcome	Students can complete their programmes through scholarships without financial burden, often leading to joining the workforce or pursuing a further degree.	Fellowships lead to career advancement. According to ACLD (American Council of Learned Societies), 65% of fellowship recipients in the humanities receive either a promotion or job offer within one year of completing the fellowship.
Commitment to sponsor	Once the scholarship period ends, scholarships do not generally require recipients to engage in formal commitments with a sponsoring organisation.	Fellowships often require recipients to take on specific commitments, such as working in a particular field, publishing findings, completing a research project, etc.

Choosing Between a Scholarship and a Fellowship

You must research various scholarships and fellowships and then choose one that fits your needs. Here are the key factors and tips to consider to make an informed decision.

Factors to Consider While Choosing a Scholarship vs Fellowship

Factor	Scholarship	Fellowship
Career goals	Scholarships like the Gates Millennium Scholars Program help students pay for UG or graduate degrees. Better if you are still building your educational foundation.	Fellowships are more suited for students who have already pursued or are interested in pursuing advanced research. They help conduct research and enhance career prospects.
Academic stage	Often suited for students just beginning their academic journey or in the middle of it. Scholarships are the right option for undergraduate students.	Suit students who are more advanced in their education or career. A fellowship is better for students in a graduate or postdoctoral programme.
Award coverage	Average scholarship amount in the USA: about $7,400 per year. A scholarship can potentially cover the entire cost of education.	Usually covers research costs. May also offer a stipend through teaching or assistantships. Fellowship amounts in STEM fields can be up to $37,000 per year (NSF GRFP) or higher.
Research interests	Often flexible with research. Best aid for students focused on coursework, not research.	Ideal for students pursuing research-based degrees or a career in research. ACLS Fellowships for humanities students require a clear research agenda.

Tips for Selecting a Scholarship vs Fellowship

1. Evaluate the Financial Benefits

Compare the financial benefits of a scholarship vs a fellowship. Some scholarships, like the Rhodes, may cover your entire education and give you a stipend. Others may just cover a percentage of your tuition for a few years. Similarly, some fellowships may award you an amount to cover your education cost and pay you a yearly stipend on top of that, whereas some fellowships may not. You must properly research and understand your options and then make an informed decision.

2. Assess the Level of Competition

Fellowships tend to be more competitive than scholarships as they only include a limited number of awards but have bigger requirements. However, this can vary. The Rhodes Scholarships only have an acceptance rate of 0.7% and are awarded to less than 200 students per year. On the other hand, the U.S. Department of Education says that about 1.7 million scholarships are offered to students in the country every year.

3. Understand the Commitment Required

Some scholarships, like Georgia’s HOPE Scholarship, require you to maintain your GPA and excel in extracurriculars. Others have no such requirements after your application is approved. Some fellowships, like the Fulbright, expect international recipients to return home to share their experiences. Understanding what you commit to before accepting any award is essential.

4. Look at Geographic Considerations

Some scholarships and fellowships are specific to a country, university, or department. For instance, the Commonwealth Scholarship is for students from Commonwealth countries who want to study in the UK. Similarly, the Erasmus Mundus Joint Master Degree is offered to students from different European countries. The Rhodes Scholarships are specifically for students who want to study at the University of Oxford for graduate programmes. Always check geographic eligibility before investing time in an application.

5. Seek Guidance and Mentorship

Consult with mentors, advisors, previous scholars, or fellows. Many universities have a department advisor to help students with financial aid options. Universities like Stanford and Harvard offer fellowship advising services to help students receive personalised guidance. Most scholarship or fellowship-related information is on the university website. Previous recipients can also give realistic insights into the application process and what evaluators look for.

Also Read: Top 10 Master’s Scholarships for Indian Students 2026

How to Increase Your Chances of Securing a Scholarship or Fellowship

1. Strengthen and Tailor Your Application

Every scholarship or fellowship has specific requirements. The Rhodes Scholarship requires an excellent academic record, leadership skills, and public service. The NSF GRFP usually favours applicants with research experience, strong recommendations, and publications. You must read the requirements and customise your application. If you can produce excellent letters of recommendation and have experience publishing critically acclaimed papers, you could make a strong candidate for the NSF GRFP.

2. Focus on Your Personal Statements and LORs

Most scholarships and fellowships require LORs (Letters of Recommendation) and personal statements. Personal statements help the committee know your true self. They show why you are a good fit for the programme. LORs show your academic skills and potential in extracurriculars. You must approach your mentors or professionals carefully. Their recommendations as referees may make or break your applications.

3. Use SelectRight to Find the Right University with Scholarship Opportunities

With so many factors to consider, the process of finding and applying for scholarships can feel overwhelming. For most students, the best strategy is to apply for relevant scholarships while also selecting universities that offer their own scholarships. However, with so many options available, choosing universities that fit all your criteria can be challenging. SelectRight uses an AI-driven algorithm to analyse over 8 million data points from more than 40,000 programmes across 4,000+ universities. It matches these programmes to your academic, personal, and professional profile, ensuring that you apply to universities where you have a high chance of acceptance, a good return on investment, and scholarship opportunities.

Here is how it works:

Create a free profile on SelectRight and provide detailed information about your academic background, test scores, and preferences
The algorithm processes your details and generates a shortlist of the best-suited universities and programmes for you
Compare the shortlisted universities using advanced criteria such as alumni networks, recent placements, and faculty quality
Receive guidance from an expert advisor at any stage of your application process
Stay informed about relevant scholarship opportunities that align with your selected universities and programmes

Your dedicated SelectRight expert will also help you stay aware of scholarship opportunities, ensuring you do not miss out on any potential financial aid.

SelectRight uses AI-driven algorithm to analyse 8 million+ data points from 40,000+ programmes. Match your profile, find universities with scholarship opportunities, get expert guidance. Free. Find Universities with Scholarships on GradRight

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Frequently Asked Questions

What is the main difference between a scholarship and a fellowship?

Scholarships and fellowships are both financial aids that help an individual complete their education or research. However, they serve different purposes. A scholarship is a financial award that helps students pay for their education – unlike education loans, scholarship recipients do not have to repay the amount. Scholarships are generally awarded to students pursuing undergraduate or graduate degree programmes. A fellowship is a financial grant that helps students fund advanced study or research in a specific field. Fellowship recipients are usually those who have finished basic education and seek to deepen their expertise through specialised research. Fellowships cover research costs and often come with a stipend. Fellowships generally tend to be more competitive than scholarships.

Are there specific fields of study that are more likely to offer fellowships?

Certain fields that emphasise professional and research development tend to offer more fellowships. These areas include: Science; Technology; Engineering; Mathematics (STEM – more than 70% of NSF GRFP fellowships are dedicated to STEM fields); Humanities; Social Sciences; Health and Medical Sciences; Public Policy; International Relations; Education; Environmental Studies. STEM programmes are the main focus for fellowships since fellowships are given to students from research-intensive fields. The NSF Graduate Research Fellowship Program (GRFP), one of the most prestigious fellowships, awards about 2,000 fellowships per year across 140 countries, with more than 70% going to STEM applicants.

How do the stipend amounts for fellowships compare to those for scholarships?

Fellowships generally offer higher overall financial support along with a monthly stipend. In contrast, the average scholarship amount in the USA is approximately $7,400 per year (though it can vary greatly). The scholarship amount can be as low as $4,000 per annum at some programmes. A fellowship, on the other hand, usually covers a student’s research costs and may also offer a stipend through teaching or assistantships. Fellowship amounts in STEM fields may be up to $37,000 per year or higher. For instance, the NSF Graduate Research Fellowship Program (GRFP) offers an education allowance of $12,000 and a yearly stipend of $37,000. According to ACLD, 65% of fellowship recipients in the humanities receive either a promotion or job offer within one year of completing the fellowship.