Scholarships and Education Grants: The Basics

Paying for school can feel overwhelming, but you do not have to figure it out alone. Many families find that grants and scholarships help cover part of the cost of college, trade school, or a certificate program. This guide explains how these kinds of aid generally work, where to look, and how to protect yourself from scams.

Every program sets its own rules. Eligibility is decided by the organization that runs each program, so always confirm details directly with them.

What grants and scholarships are

Grants and scholarships are both forms of aid that generally do not need to be repaid. That is what makes them worth researching first.

• Grants are often based on financial need. They may come from the federal government, your state, or the school itself.
• Scholarships may be based on need, grades, talents, a field of study, community service, or a connection to a group. They can come from schools, businesses, nonprofits, and local organizations.

Some aid is a one-time award. Other aid may renew each year if you meet the sponsor’s requirements, such as keeping a certain grade average or staying enrolled.

Start with the FAFSA

The Free Application for Federal Student Aid, known as the FAFSA, is the starting point for most students. You can find it at StudentAid.gov. As the name says, it is free to file. You should never pay anyone to submit it for you.

The FAFSA collects information about your household and finances. Schools, states, and the federal government use it to decide what aid may be available to you. Many colleges and state grant programs also rely on it, so filing it can open more than one door.

Tips for filing

• Create your StudentAid.gov account ahead of time. Dependent students usually need a parent to create an account too.
• Have tax information and basic household details nearby before you start.
• File as early as you reasonably can. Some states and schools award aid in the order applications arrive, and their timelines vary.
• Save a copy of your confirmation and check your email for follow-up requests.

Federal grants, described generally

The best-known federal grant is the Federal Pell Grant. It is generally intended for undergraduate students who show financial need. The amount a student may receive depends on several factors, including financial need, the cost of attending the school, and whether the student attends full time or part time. Award amounts and rules change over time, so check StudentAid.gov for current information.

There are also other federal grant programs for certain situations, such as students planning to teach in high-need fields. StudentAid.gov lists the current federal grant programs and how each one works.

State grants

Most states run their own grant or scholarship programs for residents. Some are based on need, some on grades, and some are tied to specific careers like nursing or teaching. A few states have programs for adult learners or students attending community college.

To learn what your state offers:

• Search for your state’s higher education agency or student aid commission.
• Ask the financial aid office at the school you plan to attend.
• Check whether your state uses the FAFSA or has its own separate form.

Limits and deadlines vary by state and change over time, so look up the current rules each year.

Local scholarships

Local scholarships are often overlooked, and they can have fewer applicants than national ones. Places to ask include:

• High school counselors and college financial aid offices
• Community foundations in your city or county
• Employers, including a parent’s employer
• Unions, civic clubs, and professional associations
• Places of worship and cultural organizations
• Your local library

Free online search tools, like the scholarship finder on CareerOneStop, can also help you find opportunities by state, field, or background.

Avoiding scholarship scams

The Federal Trade Commission (FTC) warns that some companies use scholarship and financial aid offers to take people’s money or personal information. Watch for these warning signs:

• Upfront fees. Legitimate scholarships do not charge you to apply or to receive an award.
• Promises of success. No one can promise that you will win a scholarship or receive a grant.
• Requests for bank or card numbers. Be careful with anyone who asks for account details to “hold” an award.
• Pressure to decide fast. Scammers often push you to respond right away.
• “You’ve been selected” messages for a scholarship you never applied for.

If something feels off, stop and check. Talk to your school’s financial aid office, and review the FTC’s consumer advice website. You can also report suspected scams to the FTC.

Things to consider

Before you accept any aid, take time to understand it.

• Read each offer letter carefully. Schools may list several kinds of aid together. Ask the financial aid office to explain which parts are grants or scholarships and which have other conditions.
• Ask about renewal rules. Find out whether an award continues next year and what you need to do to keep it.
• Check how outside scholarships affect other aid. Some schools adjust their own aid when you receive an outside scholarship. Ask how your school handles this.
• Keep track of requirements. Some awards require thank-you letters, enrollment proof, or minimum grades.
• Compare total costs. Look at tuition, fees, housing, books, and transportation, not just the sticker price.

Staying organized

A little organization goes a long way. Many families keep a simple spreadsheet or notebook with:

• The name of each scholarship or grant
• The sponsor and contact information
• Due dates and required materials
• The date you submitted
• Any follow-up you need to do

Reuse strong essays when it makes sense, but tailor each one to the question being asked.

Where to go from here

Grants and scholarships take some effort to find, but the effort can pay off. Start with the FAFSA, look into your state’s programs, and ask around your community for local opportunities. When in doubt, contact the school’s financial aid office. They answer these questions every day and can help you understand your options.