Scholarships offer students free money to help them pay for their education, but few students pursue this type of financial aid, and many scholarships go unclaimed. Why is this?
A scholarship differs from other types of financial aid because it is money you don’t have to repay, unlike student loans . There are two types of student loans, those that come from the government and those that come from private lenders. You will probably get a better deal on interest rates from the government, but both types of loans usually require you to start paying them back after you graduate.
A scholarship or a grant, on the other hand, is money that you are given and don’t have to pay back — ever. There are a number of different types. For instance, the government offers grants to low-income students and students who are the first in their families to go to college. Colleges may offer a scholarship to students who had good grades in high school, and private institutions may want to offer scholarships only to students who excel in a specific field. Most scholarships require that you have good grades and agree to keep them up, and some scholarships are given primarily based on need (i.e., if paying for college on your own would be a hardship).
Unfortunately, many scholarships and grants go unclaimed. Students have a tendency to apply only for those the people in their school’s financial aid department know about, rather than seeking out scholarships on their own. (There are books on the market and websites on the Internet that list all of the available scholarships and grants that you could apply for.) Also, some students decide not to apply because it can be a lot of work — many scholarships and grants require applicants to submit an essay about why they deserve the scholarship, or what they plan to do with their careers.
The result is that getting a scholarship or grant simply isn’t very difficult — there isn’t a lot of competition, especially for the more obscure ones. I’ve known people who have landed so many scholarships and grants that they have been able to pay for each semester’s tuition and books, and still have money left over for living expenses throughout the semester.
It really does pay to take the time to apply for scholarships and grants!