2026 Guide to Scholarships For College Students
What Is a Scholarship? Let's Ask The Experts
First, we want to discuss what scholarships are and how they work.
Financial Aid Expert
Financial Advisor
A scholarship is gift aid, which is money you don’t repay, awarded for meeting specific criteria.
Barz: "Scholarships are grants awarded for special abilities, skill, or some criteria and do not need to be repaid, unlike loans. Grants are also a form of gift aid but usually depend on financial need. Usually, scholarships are given on academic merit or extracurriculars or on the basis of very peculiar qualifications."
Just as important, many families overlook where the biggest awards actually come from.
Wang: "There are so many misconceptions. But students and parents often think that scholarships come from external or outside organizations. Families don't realize that the biggest source of scholarships, by far, is the school themselves."
How Scholarships Work in Practice:
- Sources: Consider institutional merit/departmental awards (often the largest), need-based grants, and external scholarships.
- Timing: Aid is deadline-driven, so submit the FAFSA® early.
- Eligibility & stacking: Check GPA/credit renewal rules and whether scholarships can stack with grants.
- Strategy: Prioritize institutional offers first (per Wang), then layer in outside awards aligned to your academics, activities, identity, or niche criteria (per Barz).
How Can Scholarships Impact Financial Aid via FAFSA/Pell?
Scholarships can directly affect your federal aid eligibility because the FAFSA calculates “need” by subtracting your expected family contribution from the cost of attendance.
If you receive scholarships or grants, that reduces your financial need, which can ultimately lower need-based aid (e.g., the Pell Grant or subsidized loans). However, scholarships never reduce your Pell eligibility dollar-for-dollar; schools first adjust loans or work-study before touching Pell. In most cases, outside awards offset less favorable aid, meaning scholarships almost always lower your debt burden.
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What Types of Scholarships Are Available for College Students?
What are the types of scholarships? This is undeniably one of the most commonly asked questions by current and aspiring college students — and rightfully so. Understanding the different types of college scholarships can potentially pay dividends in the end — no pun intended.
Wang: "Big dollar scholarships attract all of the attention, but students have a far better chance of winning smaller scholarships. If a student applies to one, $10,000 scholarship, they are less likely to get anything versus if the student applied to ten, $1,000 scholarships. In that case, the student is far more likely to get something.
Applying to ten scholarships can be more work than just applying to one, but winning money is far more likely."
Grants vs. Scholarships
Both grants and scholarships are known as gift aid, which refers to financial assistance for college that students don't have to repay. However, grant eligibility is predominately based on financial need while scholarship eligibility can be based upon merit, financial need, or a combination of both. Individual scholarships have different eligibility requirements.
The majority of college grants are awarded through federal and state governments. To see if you qualify for federal and state grants, you will need to complete the Free Application for Federal Student Aid (FAFSA) as well as your state’s student financial aid application, if applicable in your state.
Financial Aid vs. Scholarships
Many people think financial aid and scholarships are two entirely different types of college funding. The term “financial aid” technically means grants, loans, scholarships, and any other form of college financial assistance. Grants, on the other hand, are strictly need-based college aid and do not include student loans or other aid that must be repaid after college.
Therefore, grants and scholarships are both “financial aid.” While some colleges and universities have separate financial aid and scholarship offices, others just have a financial aid office that covers all types of aid.
Barz: "Because they work with a student's financial aid package, scholarships might cut back on other forms of federal aid to which a student is eligible. However, they often lessen the student's need for loans, giving scholarships value as an adjunct to the aid based on the FAFSA such as Pell Grants.
Students should first check with the financial aid office of their school and local community organizations or employer-sponsored programs. Once reached there, nationwide databases and approved scholarship search engines will ensure a wider reach without losing out on local opportunities."
We have also created guides to help you understand financial aid letters and successfully negotiate a financial aid package.
Non-Essay vs. Essay Scholarships
Scholarships generally fall into two broad categories: those that require an essay and those that don’t.
Non-essay scholarships are often sweepstakes-style or application-based awards where you just submit your basic information. These are quick to apply for and can boost your chances of stacking smaller awards, but they’re obviously the most highly competitive since thousands of students can enter with very little effort.
Essay scholarships, on the other hand, require more of a time investment. They often ask you to write about personal experiences, goals, or perspectives in response to a prompt. While this does take some effort, the barrier weeds out casual applicants, giving serious students a stronger chance at winning larger awards.
For students pursuing college essay awards, learning how to craft a strong narrative is essential. Check out our guide on how to write a college application essay for some tips.
Barz: "Definitely, simple scholarships can be a fast way to get money; however, because of the very low barrier, the flood of applicants might bring down the chances below those of essay scholarships. The essay takes more work but probably will have fewer serious applicants, raising the odds for the serious students."
Merit-Based vs. Need-Based Scholarships
Merit-based scholarships are awarded based upon academic achievement, community involvement, and other personal superlatives. Need-based scholarships are specifically tied to “financial need.”
Institutional Scholarships
Institutional scholarships are one of the most recognizable types of scholarships. They are awarded by institutions and can be need-based or merit-based, although eligibility is often determined by both. Keep in mind that you can’t expect the name of a scholarship to help you distinguish between the two. You'll need to look for that information within individual scholarship descriptions.
The best places to find information on institutional scholarships are the financial aid and scholarship office web pages at your preferred school, as well as that of your academic department. Institutional scholarships can vary greatly from one school to another and from one scholarship to another.
Private Scholarships
There are also thousands of private college scholarships awarded every year by companies large and small. These are diverse and can be offered by:
- national, regional, or local organizations
- civic organizations
- religious groups
- professional organizations
- affinity groups
- employers
- companies in specific industries with a need for new talent
The particular types of private scholarships available to college students are highly varied. While many private scholarships are awarded based on academic achievement, extracurricular activities, or underrepresentation (similar to how colleges and universities award aid), others have entirely different eligibility criteria. For example, private scholarships can be awarded for:
- writing poetry and essays
- performing theater, music, and dance
- producing works of art
- success at sports or hobbies
- demonstrating potential at places of employment
Some private scholarship applications are simple and straightforward, while others are much more detailed and time-consuming, like creative writing contests.
Wang discusses overlooked private scholarships: "Local credit unions, chambers of commerce. Another often overlooked source is the alumni association of the college, though in my experience, this is typically only with large publics."
Sallie vs. Salle Mae
It’s easy to get confused by the names, but Sallie and Sallie Mae are two sides of the same organization. is the education solutions arm, focused on helping students navigate college with free tools, tips, and resources, like scholarship search platforms.
Sallie Mae®, on the other hand, is best known for its financial products: private student loans, savings accounts, and other banking services that help students and families cover education costs.
Here's the gist:
Sallie = resources and scholarships
Sallie Mae = financial products
Both work together to support students, but they serve different roles during your college journey.
Who Are College Scholarships For?
While some institutions offer scholarships for continuing students, the majority of institutional scholarships are only available to incoming, first-year students and transfer students. This is because colleges and universities use scholarships as recruiting tools. It's a way to help grow enrollment (and consequently, revenue).
While the bulk of institutional scholarships are for new students, many colleges and universities also offer scholarships to continuing students, usually based on merit. Scholarships can also be offered to grad students. If you fall into one of these categories, be sure to research what scholarships might be available at your school. Continuing and grad student scholarships are not as publicly promoted, so it can be easy to miss out.
Wang: "One misconception that students and families have is that external scholarships are only available to high school seniors. There are many scholarships available to younger students as well as those already in college. And there are scholarships available for grad students! … Students have to do the work of applying to get a chance."
How To Find Scholarships and Apply Successfully
Where to search: university financial aid offices, online databases, and local organizations
Research a wide range of scholarships that align with your background and interests. Look for opportunities that focus on your chosen field of study as well as those that might be tailored to your identity as an underrepresented student, whether that's gender, ethnicity, or personal background. By exploring a variety of options, you're more likely to find the right fit.
Barz answers, which scholarships are best? "A mix is the best bet. Large national scholarships greatly reduce tuition burdens but are also very competitive. Smaller local awards are easier to win and can accumulate over time into a meaningful cash flow. Reapplying helps secure funding since most scholarships are renewable but not automatic.
A strategy means tracking renewal deadlines, keeping up with eligibility requirements, and layering scholarships with grants and federal loans for reduced borrowing in the long haul. Treat scholarships like a part-time job, for consistent practice works!
[A] time should be set aside weekly for applying, and keep ready all other documentation like transcripts and recommendation letters. Submit quality materials rather than simply filling in quantity to fund your academic journey..."
Tips for Getting the Max Scholarship Award
Finding scholarships is only half the battle. Winning them comes down to meeting eligibility criteria, following application requirements, and respecting deadlines. Even the strongest applicant can be disqualified if they miss a step.
A surprising percentage of applications are rejected automatically for failing to follow submission rules.
Scholarship providers have noted that a surprising percentage of applications are rejected automatically for failing to follow submission rules. By paying close attention to the details and preparing carefully, you can give yourself the best chance at success.
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Highlight Unique Experiences
Make sure to share what makes you unique and let your individuality come through because that's what will make you stand out in the applicant pool. Whether it's your upbringing, personal challenges, or educational goals, these are the things that set you apart from other candidates.
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Seek Strong Recommendations
Scholarship committees often place significant weight on letters of recommendation. To improve your chances of success, ask for recommendations from people who can speak to your strengths, such as your academic abilities, character, and potential. Professors or teachers, mentors, and supervisors from an internship or job can provide great recommendations.
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Pay Attention to Deadlines
Missed deadlines can turn into missed opportunities. Keep your application materials (e.g., your resume, recommendation letters, and transcripts) organized and ready to go. Set up a calendar or schedule for yourself to know when each scholarship is due. Give yourself plenty of time to complete applications, gather materials, and edit your college essays. In terms of volume strategy, apply early and often.
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Demonstrate Leadership and Community Involvement
Highlight any extracurricular activities, volunteer work, internships, or other initiatives you've been involved in. Demonstrate your leadership skills and drive to make a positive impact in your community.
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Persevere!
Scholarships can be highly competitive. Stay positive and persistent throughout the application process knowing rejection is normal. Use each experience as a chance to learn and improve your applications for the future. And don't forget to actually reapply each year because scholarships aren’t always a one-time deal!
Wang: "Applying to and winning scholarships is a numbers game. A student has to apply to as many as they are eligible for, starting as early as freshman year of high school and continuing into college. Students should take time to submit a high-quality application, and most importantly, follow the rules of the scholarship."
Barz: "Some major mistakes include missing a deadline, sending an incomplete application, or not aligning the essay or answers with the scholarship's mission. Minor mistakes like not following instructions or reusing a generic answer are what rob students of such great opportunities."
Our Comprehensive List of the Best Scholarships To Apply For
ScholarshipOwl
If you want to simplify your scholarship search and application process, we highly recommend .
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ScholarshipOwl
Nursing Scholarships
Tech Scholarships
Corporate/Employer-sponsored Scholarships
State-Specific/Local Scholarships
- in FL
- in CA
Military/ROTC Scholarships
Graduate Student Scholarships
STEM Scholarships
Scholarships for Women
Scholarships for HBCUs
- College Guide for Black Students (our guide where we list some HBCU-related scholarships)
Scholarships for Minorities
- College Guide for Black Students (our guide)
- College Guide for Latinx Students (our guide)
Scholarships for Undocumented Students
Scholarships for LGBTQ+ Students
- College Guide for LGBT Students (our guide)
Religious & Faith-Based Scholarships
- (Christian)
- (Christian)
- (Jewish)
- (Muslim)
- (Muslim)
First-gen Scholarships
Merit- based Scholarships
Community College Scholarships
FAQs About Scholarships
How Do You Decide Which Scholarships to Apply For?
With so many to choose from, it can be difficult to decide which scholarships are the best to spend your time on. Unfortunately, the answer varies from one scholarship applicant to another. While there's no clear method for determining which scholarships you should apply for, there are two key factors that can help guide you to the scholarships offering the greatest potential returns:
- Consider is the number of scholarships an organization awards.
- Research the respective award amounts offered through different scholarship programs.
For instance, applying for a $25,000 scholarship awarded to 10 different students may be a better use of your time and energy than applying for a program that only offers three $1,000 scholarships. In the end, it’s all a matter of how much time and energy you have to spend applying for individual scholarships.
Another option is to use a service like , which provides a one-stop platform where you can more easily track and submit applications to vetted scholarships.
Is Scholarship Owl Legit?
Yes, is a 100% legitimate platform trusted by millions of students and parents alike (plus, it has a strong positive rating on ). We've even gone so far as to meet with their team, so you can trust us!
Unlike random online listings, every scholarship on ScholarshipOwl is vetted for credibility, so you can be confident you’re applying to real opportunities. The platform streamlines the entire process by matching you to scholarships you’re actually eligible for, tracking application status, and even reapplying you to recurring awards automatically.
Students often worry about scams, but ScholarshipOwl combats this with a credibility score system that highlights providers with proven histories of awarding funds. Many students find they can double their odds compared to searching on their own, and they claim the average student wins one scholarship for every 22 applications on ScholarshipOwl versus every 44 elsewhere.
How Is Need-Based Scholarship Eligibility Determined?
Financial need is calculated by subtracting your Expected Family Contribution (EFC), based on your FAFSA, from your institutional cost of attendance. For example, if your EFC is $4,750 and your cost of attendance is $30,750, your financial need of $26,000 would likely make you eligible for need-based scholarships or financial aid.
On the other hand, if your EFC were $32,750 and cost of attendance $30,750, the resulting financial need of $2,000 would likely make you ineligible for any need-based scholarships or financial aid.
Are Scholarships Taxable?
The answer to this question is simple: Scholarships are not taxable if used for qualified education expenses like tuition, fees, and required books. However, any portion spent on non-qualified costs (e.g., room, board, travel, or school supplies) is considered taxable income.
How Many Scholarships Can You Get?
As long as you stay within your institutional cost of attendance as determined by the financial aid office, scholarships are stackable (unless otherwise noted). Stacking smaller scholarship awards together is a great way to make a meaningful dent in tuition costs.
FAFSA® is a registered service mark of U.S. Department of Education, Federal Student Aid.
Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank.