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5 Key Questions about College Scholarships

Discovering ways to decrease the cost of college by finding free money could make the difference between graduating with mountains of debt or not. Knowing the answers to these five key questions will put students on the path to a more affordable college.

1. What is the difference between a grant and a scholarship?

Grants are need-based and often offered by the federal government, state, or university based upon eligibility determined by the FAFSA® form. The FAFSA® uses a formula to calculate the amount of aid for which a student is eligible and awards Pell and other federal grants to the student. States and colleges also use this information to provide grants to students.

Scholarships, on the other hand, are more often merit-based and are offered by colleges, states, corporations, community groups, private philanthropists – just about anyone for any reason. There are scholarships for:

Grants and scholarships are often part of a larger financial aid package that may include an award that is required to be repaid (i.e., a loan) or is earned (i.e., federal work-study).

2. How much scholarship money is available?

A lot.

According to the Education Data Initiative, over 1.8 million private college scholarships are awarded annually.

3. How can students find suitable scholarships?

There are many sources of information:

4. What are some tips to win scholarships?

5. What should students avoid when looking for scholarships?

Sadly, fraudsters and scammers often target families seeking free money for college. The Federal Trade Commission’s Consumer Advice site provides very good information on avoiding “scholarship and financial aid scams.”

When looking for scholarships, students should avoid:

The Last Word

Scholarships can reduce the financial burden and make college more affordable. By starting to search early, utilizing available resources, and following best practices for applying for free money, paying the college bill might get a little easier.