Key Takeaways

  • Scholarships are financial awards that do not need to be repaid.
  • Merit-based scholarships reward academic or extracurricular achievement.
  • Need-based scholarships consider your family's financial situation.
  • FAFSA is the standard application for federal student aid.
  • You can stack multiple scholarships and grants to reduce your overall college cost.

What Is a Scholarship?

A scholarship is money awarded to a student to help pay for college or trade school. Unlike loans, scholarships do not need to be repaid. They can cover tuition, books, room and board, or a combination of expenses depending on the award terms.

Merit-Based vs. Need-Based Scholarships

Most scholarships fall into one of two categories.

Merit-Based Scholarships

These awards recognize academic performance, leadership, athletic ability, artistic talent, or community involvement. Criteria may include GPA, standardized test scores, essays, recommendation letters, or a portfolio.

Merit-Based at a Glance

You do not need to demonstrate financial hardship to qualify. Strong grades, test scores, leadership, or special talents are the primary qualifiers.

Need-Based Scholarships

These awards consider your family's ability to pay for college. Financial need is typically determined by your FAFSA or CSS Profile.

How FAFSA Works

The Free Application for Federal Student Aid (FAFSA) is the primary form used by colleges, state governments, and the federal government to determine your financial aid eligibility. It opens October 1 each year for the following academic year.

FAFSA Quick Facts

  • Opens: October 1 each year
  • Required for: Federal grants, work-study, and student loans
  • Used by: Most colleges for need-based institutional aid
  • Free to submit: Always use studentaid.gov

Types of Financial Aid

TypeNeeds to Be Repaid?Based On
ScholarshipsNoMerit or need
GrantsNoFinancial need
Work-StudyNoFinancial need
Federal Student LoansYesEnrollment
Private LoansYesCreditworthiness

How to Start Your Scholarship Search

  1. Understand your profile: Note your GPA, test scores, intended major, and any unique background factors.
  2. Complete FAFSA: File early. It opens October 1.
  3. Search broadly: Use filters like education level, state, and major. Our Scholarship Finder is a good starting point.
  4. Track deadlines: Use a calendar or planner. See our Search Calendar.
  5. Apply consistently: Submit applications regularly rather than all at once near deadlines.

Need Help Staying Organized?

As you begin collecting scholarships, stay on top of deadlines with a planner or app. See our Organization Tools guide for recommendations.