What is the difference between a scholarship and a fellowship?

This page is general information, not legal or tax advice.

What is a scholarship?

A scholarship is money to help you study. It usually goes to students in college or graduate school. IRS Publication 970 describes a scholarship as an amount paid to, or for the benefit of, a student at a school to help with their studies.

Scholarships can be based on many things: grades, financial need, community service, your major, your year in school, or where you live. Most pay toward tuition, fees and books. Some also help with living costs.

What is a fellowship?

A fellowship is money to help you grow in a field. The IRS describes a fellowship grant as an amount paid to help someone with study or research.

Fellowships often support:

• research on a topic
• a new community project or organization
• training in a field, like journalism, public service or the arts
• time to explore a career

Some fellowships are for graduate students. Others are for people who already finished school, or never went to college. Many come with a mentor, a group of other fellows, or a set program to follow.

How are they different?

These are the usual patterns, not fixed rules. Always read the award's own description.

Can I get one without papers?

Yes, many of both. Private groups set their own rules, and many never ask about citizenship. Immigrants Rising keeps a list of scholarships and fellowships that do not require proof of U.S. citizenship. You can filter it by school level, state and immigration status.

Read the rules for each one. Some are only for citizens or green card holders.

One real example: the Paul and Daisy Soros Fellowships for New Americans fund graduate school for immigrants and children of immigrants. DACA recipients who were born abroad and graduated from both high school and college in the United States are eligible. It pays a stipend of up to $25,000 a year plus half of tuition and fees, up to $10,000 a semester. The 2027 deadline is October 29, 2026 at 2 p.m. Eastern (checked October 21, 2026).

What if a fellowship looks like a job?

Ask before you say yes. Some fellowships pay a stipend for set hours, with a supervisor and a work plan. Federal law makes it illegal for an employer to knowingly hire someone without work authorization, and it requires employers to check papers on Form I-9 for each new employee (8 U.S.C. 1324a). Whether a given fellowship counts as a job under those rules depends on the details, and we found no official rule that answers it for fellowships.

If you do not have a work permit:

1. Ask the program in writing how it pays fellows: as a grant or stipend, or as wages on payroll.
2. Ask whether it needs a Social Security number, a work permit or a Form I-9.
3. Take the answers to a free legal clinic, a lawyer or a DOJ accredited representative before you accept.

Do not guess, and do not sign a Form I-9 with papers you do not have.

Do I pay taxes on it?

Maybe. Under IRS rules, a scholarship or fellowship is tax free only if you are working toward a degree, and only the part that pays for tuition, required fees, books and supplies. Money used for room and board is taxable. Money paid for teaching, research or other work you must do is also taxable.

A fellowship you get when you are not in a degree program is usually taxable. Keep every award letter and a record of what you spent on tuition, fees and books. If you file taxes with an ITIN, see CalEITC and Young Child Tax Credit with an ITIN for free tax help.

Which one should I apply for?

Both, if you qualify.

• In high school or college? Focus on scholarships first. Also file the California Dream Act Application by March 2, 2027 if you qualify for in state tuition.
• In graduate school or done with school? Look hard at fellowships. Many pay more and open doors to mentors and jobs.

The same core essay helps with both.

You will tell your story, your goals and why the money matters. See How do I start writing a scholarship essay?

Who can help?

These are free. Contact them to confirm hours, languages and openings. Being listed here is not a referral or a promise of service.

• Your college's financial aid office, graduate division or Dream Resource Center: campus awards and fellowships.
• Immigrants Rising: lists and guides for undocumented students and graduates. immigrantsrising.org
• Free legal help, before you accept a paid fellowship without a work permit. In the Bay Area: Free legal help in the Bay Area. Anywhere in the U.S.: the National Immigration Legal Services Directory.

There is money out there for your talents. Go look for it.

Related questions

• How do I apply for scholarships without citizenship?
• How do I start writing a scholarship essay?
• What scholarships exist for Dreamers in grad school?