“How do I find scholarship money for college?” is a question I am frequently asked. There are several websites that assist students in their search for scholarships, but before you get too excited, let’s talk about the pros and cons of these scholarship searches.
First, you must understand where most college funding comes from and who gets it. There are four major sources of scholarships and grants;
- Federal Government (44%)
- Colleges (36%)
- State Government (9%)
- Private Scholarships (6%)
Many families spend way too much time trying to get scholarships from the smallest source of college money-private scholarships. The Federal Government awards the vast majority of funding to families who have shown that they have “financial need”. This is determined when a family fills out the FAFSA (Free Application for Federal Student Aid). Through an analysis of income, assets and other family information, a “need analysis” is conducted to determine the minimum amount a family will be expected to pay for college (EFC). Once the EFC is determined then the amount of “need-based” aid can be determined. Of course, the amount the college expects a family to pay is almost always more than most families can afford. The answer? Scholarships!
But wait a minute. For families who qualify for need-based aid, those private scholarships will not lower the Expected Family Contribution. What does that mean? Here is an example. So Joe College qualifies for $15,000 in need-based financial aid at The University of Somewhere. Joe receives a private scholarship in the amount of $2000 at Scholarship Night. He is required to report this scholarship to the university and they say to Joe, “Hey Joe. Since you got a $2000 scholarship, we are only going to give you $13,000 now since you got the other $2000 somewhere else. Good job, Joe! Thanks”.
What about the family who is not eligible for need-based financial aid? Merit aid is the second type of aid a student might receive. It is not based on financial need, but rather, the “merit” of the student. Merit aid is typically awarded for good grades and/or high standardized test scores, or personal talents such as music, art or athletics. The good news is that colleges do not typically take away merit aid when a student receives private scholarship money.
So what is a family to do? If you qualify for need-based aid, call the college and ask how they treat private scholarships. Ask if they take the amount off of loans or grants, then decide if it is worth your time to search for private scholarships. If you want to qualify for more merit money that comes directly from the college, then you need to make the college “want” you. That means you need to get good grades and high test scores. Do not take time away from your studies to search for private scholarships that usually come in small packages of $250-$1000.
If you are still adamant about seeking private scholarships, here are a few tips.
- Do not pay a scholarship search company.
- Go for local scholarships first.
- Look for talent scholarships at MeritAid.com
- As a last resort, use these websites to search: Fastweb, College Board, Scholarships.com and CollegeXpress-and good luck with that!
Always remember that your best chance to receive scholarship money is with good grades, high test scores, and choosing a school that “wants” you!
