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Grants and Scholarships

Federal and state governments, colleges, and private third-parties offer grants and scholarships to help pay for college. Unlike other parts of the financial aid package, grants and scholarships are free money, they don’t have to be repaid like loans or earned such as a work-study award.

Grants are typically awarded based on calculated financial need. High school seniors automatically become eligible for need-based financial aid when they file the Free Application for Federal Student Aid, a.k.a. the FAFSA.

Colleges typically award scholarships based on merit. Merit scholarships are often provided without a separate application for academic excellence, athletic prowess, artistic talent, and many other reasons, including geographic diversity, as a way for colleges to round out their freshman class.

In addition, to need and merit-based financial aid from the government and colleges, third-parties such as employers, large national foundations, local charities, and others offer free money to college-bound students. Each year, industrious students as young as grade school compete for the billions of dollars of contests, prizes, and scholarships offered by private third-parties.

Here’s what to do to uncover third-party contest, prizes, and scholarships:

  • Check with the high school college counseling office. School counselors are a particularly rich source of information for local and state scholarships. They know the sponsors, the criteria, and the student’s profile to quickly direct students to scholarships in the student’s area of particular strengths.
  • Use free online scholarship search services. In addition to the free scholarship search tool at, you will be able to find others online. Be aware that some require an email address to “register.”   Often, they will send regular scholarship updates that can be helpful but may also bombard your in-box until you unsubscribe.
  • Look in a book. In either digital or print editions, this old-fashioned approach still works really well.

Once the search has been narrowed to a workable list of scholarships, it is important to stay organized and be aware of the deadlines. Students will likely need to collect transcripts, records of awards/honors, and/or letters of recommendation. To make the process more efficient, students may sift through each of the application requirements to find similarities among them. Sometimes the core of one essay may be modified to address multiple applications.

Here’s what not to do:

  • Pay a third-party to do the search. With the abundance of free resources, there is no reason to pay a third-party to search for private scholarships.
  • Pay a fee to file a scholarship application. Those who set-up legitimate third-party scholarships are motivated to help students and will not charge a fee to be considered for their scholarships. Scholarship “entry” or “administrative” fees often signal a scam. Steer clear of them.
  • Assume a student will not be eligible. Each year, some estimate that many millions of dollars of third-party scholarship money goes unclaimed. Usually, the unclaimed money is offered by sponsors with very specific criteria, perhaps a certain ethnic or religious background majoring in a specific discipline or the children of military veterans with other criteria. It may pay to shop around to find sponsors of scholarships that fit a student’s unique background and interests.

While searching for free money, be creative and inquisitive. There are prizes, contests, and scholarships for just about everything from serious endeavors such as winning a national spelling bee or playing the piano to the fun and creative such as making prom attire out of duct tape or doodling.

A note of caution: Third-party scholarships may reduce other financial aid awards. Check with the financial aid office to understand how a third-party scholarship will affect your financial aid eligibility. Be sure to read the fine print to understand the terms of the awards and ask good questions: Is the award for each year in college or just the freshman year? Does the student need to reapply? Are there requirements to maintain the scholarship?

Third-party scholarships can take the sting out of paying the college bill. Knowing how to find them, what to avoid, and how they affect financial aid in advance will give you a leg-up when it’s time to get started.

Learn more about scholarships and how to earn free money by reading this article from

Scholarship Search® Search $10 billion in scholarship awards, with descriptions, deadlines, and links to apply!

The content on this page provides general consumer information. It is not legal advice or regulatory guidance. We do not endorse or guarantee the accuracy of third-party information.

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