How is a Student loan different from a Scholarship? Scholarships are money (funding) given to a student for the purpose of paying for school & other education-related expenses. They do not have to be paid back, although you usually have to earn the scholarship by meeting certain criteria like age, sex, ethnicity, gpa, or intended major. You may have to compete in something like an essay competition and be selected the winning entry.
A student loan is a loan. Like all other loans, they must be paid back and they accrue interest over time. There are several kinds of student loans in the U.S., some offered by the federal government and others by private companies and banks.
Federal loans directly to students (or the student’s school in the student’s name) are either subsidized or unsubsidized. Subsidized loans don’t accrue interest at all until you enter repayment. (Technically, the federal gov. pays the interest on your behalf.) Unsubsidized loans accuse interest from the moment they are created.
Overall, I would rank scholarships as more desirable than loans to fund school, simply because you don’t have to pay them back.