Scholarships, generally, behave more or less the same as education loans.
Loans are directly sanctioned to the students whereas the scholarship goes elsewhere and the students can not use their money for their own use. Basically, scholarship is a discount money where the institutions' authorities cut the tuition bill or give allowance in different costly facilities. Though some independent or service organizations give actual checks but apparently it consists of a small amount.
On the other hand, student loans are directly sanctioned to the students and students can deposit the amount in their personal bank account. It feels empowering because the money is directly monitored and used by the owner until the tuition payment. But student scholarship does not allow students to use it directly, instead it negotiates with the institutions in terms of lessening the fees and other costs of education. So, students do not get the chance of using it on their own.
By considering these conditions, most of the students prefer student loans over scholarships because the money can be spent by them. In a practical sense, there is complexity in that because the use of loans varies from student to student. If ones utilizes it, struggles hard and searches for the ways to pay it back, it goes smooth and it’s beneficial for them. But the question comes in terms of maturity. Some teenagers are spending their loan money by experiencing luxury and buying gadgets and partying with their buddies. They are indifferent about what comes in future. So, they enjoy it in full swing. When the time comes to an end, they suffer the most. Students have to decide when and where they invest the money.
Scholarships, in this regard, have less risk. Though students do not use it on their own, it does not have any conditions to pay back.