What is Scholarship

College can be expensive, and figuring out how to pay for it can be overwhelming. Although there are financial aid options and scholarships available that can make the cost more manageable, many students miss out on scholarship opportunities because they don’t know where to find them or mistakenly believe they won’t qualify.

Scholarships aren’t just for star athletes or straight-A students. There are thousands of scholarships that are designed for students with different interests, talents, and qualifications.

But how do scholarships work, and how do you find the right ones? By learning the ins and out of scholarships and financial aid, you can reduce some of the financial stress that comes with going to college.

What are Scholarship

Scholarships are financial aid awards designed to help students pay for an undergraduate or graduate degree. Sometimes a scholarship comes in a one-time check. Other scholarships are renewable and provide students with money each semester or school year.

These financial awards differ from student loans because they don’t have to be repaid. So, to answer a question we often hear, you do not have to pay it back if you get a scholarship.

Students might receive the money directly as a check in their name. In other cases, the money is given to the student’s school. When that happens, the student would pay the school for the difference in any money owed for tuition, fees, room, and board. If the scholarships and other forms of financial aid are enough to cover the direct college costs, the excess money is refunded to the student.

 

Where do scholarships come from?

People can donate to a university. Some of that money will be used for financial aid and/or scholarships. The biggest scholarships and financial aid comes from the institutions themselves, at least in the USA. Individual sponsorship outside one’s family is practically non-existent here due to tax laws.

Some non profit community organizations fundraise throughout the year and sponsor one or more scholarships annually. Scholarships are awarded through a competitive process. Winners must usually match certain criteria or uphold the values of the organization. These are usually for small amounts designed to help the students, but won’t come close to paying the full cost of attendance.

Businesses may sponsor scholarships. Winners are decided through a competitive process. Often they aim to sponsor employees’ children OR students majoring in something related to the line of work of the business.

There are many Different Types of Scholarships,

including:

• Academic merit: These scholarships are awarded based on academic performance, such as GPA and standardized test scores.
• Athletic: These scholarships are offered to students who participate in a sport, such as football or swimming, at an elite level.
• Identity-based: These scholarships focus on particular areas like gender, ethnicity, religion, disability status, or military affiliation.
• Activity: These scholarships reward students who demonstrate excellence in a specific area, like music, theater, or robotics.
• Need-based: Some scholarships are geared towards high-performing students with limited financial means to make college more affordable.
• Chance: Chance-based scholarships do not require students to fit any criteria. Instead, anyone can apply, and the scholarship winners are chosen at random, like a sweepstakes giveaway. College Ave’s monthly scholarship is easy to apply for and is a great example of a chance-based scholarships.

Scholarships can come from colleges or universities, non-profit organizations, government agencies, and private companies.

What Can I Spend My Scholarship Money On?

Scholarship checks awarded in your name can be spent on anything, but you would be wise to look at this as an investment and not a free pass to splurge on video games or concert tickets. This money is for school expenses. This could mean tuition, but it could also be books, pencils, housing, food (you can’t study on an empty stomach), or even computers and software.

When you receive the scholarship money depends on the scholarship you won. Sometimes you get the money in one chunk before school begins; in other cases, the money is distributed in installments. Sometimes a scholarship may be paid out in the middle of a semester.

How Do I Find Scholarships?

Scholarships can come from several sources:

• Your college or university: Your college or university is a great place to start. Most schools offer scholarship and grant programs, including academic-based awards. According to The College Board, college-based awards account for 53% of all undergraduate gift aid.
• Non-profit organizations or private companies: Non-profit organizations and companies also offer scholarship and grant opportunities, making up 12% of gift aid.
• State government: Some states operate grant and scholarship programs. State-based grants and scholarships make up about 9% of all gift aid.

To search for opportunities, follow these tips:

• Fill out the Free Application for Federal Student Aid (FAFSA): A completed FAFSA is necessary to qualify for several forms of financial aid, including federal grants and student loans. Some schools and organizations also use the FAFSA to determine your eligibility for grants and scholarships.
• Contact your school’s financial aid office: Your school’s financial aid office can tell you what institutional financial aid is available and what is required to apply for any school scholarships or grants. They may also be able to refer you to other sources of funding.
• Visit your state education agency website: Your state department of education or education agency may have information about state-run grants or scholarship programs, including details on the scholarship application process and deadlines.
• Use scholarship search tools: There are many reputable scholarship databases you can use to find available opportunities. Top scholarship search tools include:
  • Career One Stop
  • Fast Web
  • The College Board’s Scholarship Search

Do I have to pay taxes on my scholarship?

Scholarships for tuition, fees, and required books or supplies are generally tax-free. However, if you use your scholarship funds for other expenses, such as room and board, travel, or optional equipment, those scholarship funds are usually taxable. Again, it’s good to consult a tax professional .

Conclusion

This article we  discussed scholarship  included everything students need to know about the scholarship, from it’s meaning, requirements, purpose, application, and type. Take advantage of this scholarship to pursue your high school  education.