Financial aid and scholarships are both monetary assistance to help you pay for college or graduate school. However, normally the difference is:
“Financial aid” refers to money paid for by the government (federal or state) or by your college itself, and is based on financial need. To apply for financial aid, you need to fill out the FAFSA®--and depending on your school, potentially additional forms as well, like the CSS Profile.
“Scholarships” can be based on financial need or merit (academic, sports, or just writing the best essay), and is paid for by either your college or a third-party (like a foundation, organization, or company). To apply for external scholarships, you often need to fill out separate applications, usually with their own essay questions.