Scholarships
What Is a Scholarship?
A scholarship is financial assistance awarded to a student to help pay for education expenses. Unlike student loans, scholarships do not need to be repaid. Scholarships may be awarded by colleges, nonprofit organizations, government agencies, businesses, or community groups.
Scholarships are often based on academic achievement, athletic ability, leadership, community service, artistic talent, or other specific criteria.
Why It Matters
Scholarships can significantly reduce the cost of education and the amount students need to borrow through loans. For many students, scholarships make higher education more affordable and accessible.
Because scholarships do not require repayment, they are often considered one of the most valuable forms of financial aid.
How Scholarships Work
Students typically apply for scholarships through schools, scholarship organizations, or online scholarship programs.
Applications may require:
- academic transcripts
- essays
- letters of recommendation
- proof of eligibility or achievements
Scholarship funds are usually applied directly to tuition or education expenses, though some scholarships may provide funds directly to students.
Example
A student receives a $5,000 academic scholarship from a university for maintaining a high GPA and strong academic performance. The scholarship reduces the amount the student must pay for tuition.
Scholarship vs Grant
- Scholarships are often awarded based on achievement or merit.
- Grants are typically awarded based on financial need.
Both forms of aid usually do not require repayment.
FAQs About Scholarships
Do students need to repay scholarships?
No. Scholarships typically do not need to be repaid.
Can students receive multiple scholarships?
Yes. Students may combine several scholarships to reduce education costs.
Are scholarships taxable?
In some cases, scholarship funds used for non-qualified expenses may be taxable.
Related Terms
