Scholarships are awards of money for education that you don’t repay, given based on merit, need, or other criteria, and applied for through schools or organizations.
Types
- Merit based: grades, talent.
- Need based: family income.
- Athletic, minority or field specific.
How to apply
- Fill out the FAFSA.
- Search at Fastweb, Scholarships.com and school offices.
- Submit essays and recommendations by deadlines.
Payment
Money goes to the school or to you, to cover tuition and fees.
Tip
Avoid scams that ask for a fee.
Where to find them
- Federal and state financial aid offices (FAFSA).
- College financial aid and department websites.
- Nonprofit foundations, community groups, employers and local clubs.
- Free search tools such as the US Department of Labor’s scholarship finder and the College Board.
Types of scholarships
- Merit based: grades, test scores or talents.
- Need based: family finances.
- Athletic scholarships.
- Identity or field based, e.g., for particular backgrounds, majors or careers.
- Employer and military based, such as the GI Bill and ROTC.
Application materials
Typical items include a form, transcripts, essays, recommendation letters, a resume of activities and sometimes financial documents.
Deadlines
Many deadlines fall between fall and spring of senior year, but they are year-round. Apply early.
How funds are paid
Most scholarships are paid directly to the school’s bursar to cover tuition, fees and housing. Some provide a check to the student for books and expenses.
Renewability
Some are one time awards, and others renew annually if you maintain a minimum GPA or enrollment.
Taxes
Scholarship money used for tuition, fees and required course materials is generally not taxable. Amounts used for room and board are generally taxable income.
Scams
Do not pay fees to apply for scholarships or to find them. The Federal Trade Commission warns of “guaranteed” awards and requests for bank information.
Numbers
The College Board reports that grant aid and scholarships averaged around 15,000 dollars per full time undergraduate in recent years from all sources.
Types, taxes and payment
Scholarships come from colleges, state programs, employers, nonprofits and private companies, and they can be based on merit, need, field of study, background or activities. Many require applications with essays, transcripts, recommendation letters and sometimes the FAFSA. Money is usually paid directly to the school. Under IRS rules, scholarship money used for tuition and required fees, books and supplies is generally not taxable, while amounts used for room and board or other costs are taxable income.
Renewals and scams
Many scholarships are renewable for several years if you keep a minimum GPA or credit load. Apply early and track deadlines, since many fall between October and March. The Federal Trade Commission warns against scholarship scams that charge fees, guarantee awards or ask for bank account information. Legitimate scholarships do not require payment to apply. Use free resources such as the College Board search, school financial aid offices, Fastweb and the US Department of Labor’s CareerOneStop scholarship finder.
Based on data from the IRS and the Federal Trade Commission
