Understanding the Two Main Types of Scholarships
When searching for scholarship money, you'll quickly encounter two broad categories: merit-based and need-based. While both can dramatically reduce what you pay for school, they work very differently and require different strategies to find and win. Many students qualify for both — and some scholarships combine elements of each.
What Are Merit-Based Scholarships?
Merit-based scholarships are awarded based on achievement, talent, or demonstrated ability — not financial circumstances. They reward students for excelling in specific areas, such as:
- Academic performance: GPA, class rank, standardized test scores (SAT/ACT)
- Athletic talent: NCAA and NAIA scholarships for college athletes
- Artistic or creative achievement: Art portfolios, music auditions, writing contests
- Community service or leadership: Demonstrated involvement and impact
- Field of study: Engineering, nursing, STEM, education, and other targeted disciplines
Merit scholarships can come from colleges directly, private organizations, corporations, or professional associations. Some of the most well-known are offered by universities as part of their recruitment strategies.
What Are Need-Based Scholarships?
Need-based scholarships are awarded based on a student's financial circumstances. Eligibility is typically determined by reviewing financial information — often through the FAFSA — to assess how much a family can reasonably contribute to education costs. Common sources include:
- Federal and state government programs
- Colleges and universities with institutional aid programs
- Nonprofit foundations focused on supporting low-income students
- Community organizations and local foundations
Key Differences at a Glance
| Factor | Merit-Based | Need-Based |
|---|---|---|
| Primary Criteria | Achievement, talent, skill | Financial need |
| FAFSA Required? | Sometimes | Usually yes |
| Renewal Requirements | Maintain GPA or performance | Demonstrate continued need |
| Competition Level | Varies widely | Varies widely |
| Common Sources | Colleges, private orgs | Government, colleges, nonprofits |
Can You Get Both Types?
Absolutely. Many students receive a combination of merit and need-based aid. For example, a college may offer an academic scholarship for your GPA and need-based institutional grant money because your family's income qualifies. This is called "packaging" your financial aid, and it's a common practice at colleges and universities.
Where to Search for Scholarships
Here are reliable starting points for your scholarship search:
- Your school's financial aid office: Always the first stop — many institutions have their own scholarship programs.
- Federal and state aid databases: The federal StudentAid.gov site and your state's higher education agency list publicly funded options.
- Free scholarship search engines: Platforms like Fastweb, Scholarships.com, and the College Board's BigFuture tool.
- Local community foundations: Often less competitive and specifically for students in your area.
- Professional associations: Many industry groups offer scholarships tied to specific career paths.
Final Thoughts
The best scholarship strategy is a wide net. Apply for both merit-based and need-based opportunities, and don't overlook smaller, local awards — they often have fewer applicants and strong odds. Keep a calendar of deadlines and tailor each application to the specific criteria that scholarship values most.