There are a lot of different terms thrown around, and the term “scholarship” can mean different things to different people, so let’s talk about what we mean by these different terms.
Merit Aid:
Many (not all) schools offer “merit aid” to students. Schools call it different things - merit aid, scholarship, etc. When we talk about this kind of aid, we are talking about a financial award offered to an applicant based on the strength of the application and not on financial need. This can be granted according to a formula based on grades, test scores, or some combination thereof. It can also be based on things like residency - such as awards through the Western University Exchange. While colleges and universities all have their own processes, remember that when we use the term, we are talking about awards that are given to a student by the university based on their college application. The important takeaway is that merit aid can significantly reduce the cost of college. Think of it as a discount - sometimes a big one.
Some schools - usually the ones with very low acceptance rates - don’t offer merit aid at all (but some of these same schools are more generous with need-based aid)
Merit aid is a game-changer for many students. It is awarded based on the admission application, so students should put their best effort into these - even when they think that admission is very likely.
The ability to estimate merit aid varies by university. Some have transparent formulas or estimators on their websites, and others don’t reveal as much.
University-Administered Scholarships:
University-administered scholarships are usually privately funded by benefactors who ask the university to award and administer them.
We suggest that students pursuing private scholarships focus their efforts on these.
These are often available in a portal that is only accessible to admitted students and enrolled students and is not publicly accessible. This means that students need to take charge of this search!
Students can tailor searches to their major or specific interests.
These scholarships are usually reliably funded and are often renewable each year, and it is well worth your student’s time to explore these.
Private Scholarships:
We want to be blunt. These scholarships can help—everything does—but they are usually not gamechangers. By that, we mean that they don’t usually make an unaffordable college affordable.
There are many types of private scholarships. Some are big ones - like the Coca-Cola Scholarship, the Gates Foundation Scholarship, Questbridge, and National Merit Scholarships. Very few students qualify to apply for these, and those who think they might should be in touch with their high school counselors for more information and guidance. Because so few students qualify, we will focus here on smaller scholarships.
Finding small scholarships can be like searching for a needle in a haystack. It is important to be realistic before spending a lot of time writing essay after essay for smaller private scholarships. Higher education journalist James Murphy recently wrote an article about this exact topic, and he did an excellent job - we recommend that families read it before developing a scholarship application strategy.
Remember that the majority of smaller private scholarships are not renewable - they are one time awards. Families should make sure they understand the terms of the scholarship and are not counting on the award continuing beyond the first year of college.
If your student qualifies for need-based financial need, they should ask their university’s financial aid office how a private scholarship might impact that aid before they accept a private scholarship.
If your student is applying for private scholarships, we suggest that they prioritize scholarships awarded by local groups.