How Merit-Based Scholarships Work
15
Jun
How Merit-Based Scholarships Work
The cost of attending college has been increasing across the board for decades. For the 2022-23 school year, the average in-state student will pay $10,950 for full-time tuition and fees at a four-year public institution, according to College Board. That figure climbs to an average of $39,400 for those who are enrolled at private four-year schools.
Taking advantage of financial aid opportunities, including merit-based scholarships, can offset the cost of higher education and reduce what students must borrow.
What Is a Merit-based Scholarship?
A merit-based scholarship awards money for college to applicants who demonstrate high achievement and accolades. Merit awards may be available for students who rank highly in grade point average (GPA), standardized test scores, extracurricular recognition, athletic performance, leadership involvement or community work.
This differs from need-based scholarships, which typically require proof of financial need to qualify. With merit-based awards, you can apply for many scholarships based on your academic and extracurricular achievements alone. And like other scholarships, merit-based awards don’t need to be repaid.
Types of Merit Scholarships
Within the merit-based scholarship category of financial aid, there are different classifications to explore:
- College-funded merit scholarships. This type of merit-based scholarship is sponsored and funded by your school. It’s commonly referred to as tuition discounting and is sometimes offered by high-dollar institutions to attract top achievers by reducing their tuition costs. Colleges might also offer athletic merit scholarships if you demonstrate a high aptitude in a particular sport.
- Private merit scholarships. Some private businesses and nonprofits offer their own merit scholarship to top students. Private merit-based scholarships have varying requirements but generally focus on an eligibility requirement that’s important to the organization. This can include factors like a student’s leadership qualities, chosen career path or community service.
How Do Merit Scholarships Work?
Merit-based scholarships are a valuable source of financial aid. Although you might have excelled in a particular area of academia or extracurricular, there are still rules you’ll need to follow to earn merit scholarships.
Applying for a Scholarship
Sponsors of merit-based scholarships, especially programs with recurring annual awards, announce the details of the scholarship well in advance. Search for awards and make sure you meet the program’s eligibility criteria. Be sure to note the submission deadlines throughout the process.
Many scholarships require you to fill out an application with your basic information, in addition to supporting documents. These extra documents might include your school transcripts, proof of enrollment for the current academic year or a personal statement or essay.
Using the Scholarship Award
If you’re awarded a merit scholarship, congratulations! This achievement will no doubt help you pay for college costs, but it’s a good idea to read the program’s fine print about how the money can be used.
Typically, scholarship funds are considered gift money that can be applied toward any education-related expense. However, program requirements vary so check to see if there are any restrictions in how you’re allowed to use the funds.
Depending on the award, your scholarship money may be sent directly to you or your school. If it’s sent to your school, the financial aid department may apply the money to outstanding tuition and fees before sending you any leftover cash.
Reporting Outside Scholarship Awards
The federal government sets requirements for schools to track your total financial aid compared to your calculated financial need, so it’s important to notify your college of any private scholarships you win.
Let’s say your school offered you a financial aid package with need-based federal aid, like a Pell Grant. If you got a private merit scholarship that causes your total aid to exceed your calculated need, the amount of your Pell Grant or other types of aid may be decreased.
How to Get Merit Scholarships
The first place to look for merit scholarships is through your school and your degree department. Some institutions offer school-wide merit scholarships to eligible students, while other awards are funded by individual department budgets and are available to select students who’ve declared a major within their college.
After exhausting campus-based scholarship opportunities, a good place to continue your search is through local organizations and your city or county’s community foundation. These entities sometimes sponsor their own scholarship program or act as a resource for finding local merit scholarships.
After tapping into local scholarship opportunities, you can broaden your search using an online scholarship database like Scholarships.com and Fastweb.
