The difference relies in how the symbol is converted into its respective column type in query language.
with MySQL :string is mapped to VARCHAR(255)
:string | VARCHAR | :limit => 1 to 255 (default = 255)
:text | TINYTEXT, TEXT, MEDIUMTEXT, or LONGTEXT2 | :limit => 1 to 4294967296 (default = 65536)
Reference:
When should each be used?
As a general rule of thumb, use :string
for short text input (username, email, password, titles, etc.) and use :text
for longer expected input such as descriptions, comment content, etc.