Free Money for College – Part 2: Merit-Based Financial Aid

“Free money” that comes in the form of merit-based financial aid includes scholarships and grants; it is money that is almost always tax-free and never has to be repaid. Merit-based scholarships and grants are awarded based on excellence in academics, leadership, volunteerism, athletic ability, and other areas determined by the granting organization, which can be a college or university, community-minded organization, or individual.

Merit-based financial aid is awarded to students without consideration of family income or financial assets.

While some merit-based aid is earmarked for college-bound students that possess exceptional non-academic attributes (e.g., leadership, volunteerism, or athletic ability), the bulk of merit-based financial aid is awarded based on the academic success students achieve during high school. In other words, the majority of merit-based scholarships and grants are given to students with the highest grade point averages and standardized test scores (SAT® and/or ACT® test scores). Additionally, some scholarships include criteria for career goals (must be planning to study a specific major in college).

Below are descriptions of the types of merit-based aid awarded based on student academic success. Instructions on how to apply for each are provided.

1. Campus-Based Scholarships and Grants (from colleges themselves). Application for merit-based awards typically is automatic when students submit their application for admission. In this case, the academic qualifications of each student applicant are evaluated for scholarship and grant awards at the same time they are being considered for admission. Students should check each college’s website to make sure no extra application materials are required to be eligible for merit-based aid.

It should be noted that many private colleges and universities offer special, large scholarships that do require additional application materials and/or interviews. These scholarships are offered to only the most highly qualified students (students with the highest grade point averages and test scores) and include awards such as the Presidential Scholarship, University Scholars Award, Trustees Scholarship, etc. Students should check the scholarship section of each college’s website for specific instructions regarding these scholarships.

2. Private Scholarships. These scholarships are offered by nationwide organizations, local and regional organizations, and parents’ employers. Each source of funding has its own application process and criteria for giving awards.

Scholarships offered by nationwide organizations can be found on Fastweb.com. Students need to register with this website (for free) and scholarships matching their qualifications and interests (with instructions on how to apply) and will be listed or e-mailed to the student. Keep in mind that national scholarships are very competitive and very difficult to win.

Local and regional scholarships are offered by local community organizations (e.g., Elks and Rotary Clubs). Students should ask their high school counselor for details regarding available scholarships and read their high school bulletin/scholarship bulletin on a regular basis. These scholarships typically are less competitive than those offered by nationwide organizations. Students should ask their high school counselor or scholarship sponsors for details regarding applications, essays, required letters of recommendation, etc.

Scholarships offered by parents’ employers may be difficult to find this year. However, parents can inquire, and if scholarships are offered, should learn and share the application requirements with their son or daughter.

NOTE: Because the single best source of scholarships and grants is the colleges themselves, private colleges and universities are a real option for high school students with very little money. Numerous high school students receive so much scholarship and grant money from private universities that it is less expensive to attend a private school than a State college that gives very little financial aid.

For more information visit MyCollegeCalendar.org.