Scholarship
Financial term in the Education category
Definition
A financial award given to a student based on academic achievement, athletic ability, community involvement, or other criteria that does not need to be repaid. Scholarships can come from colleges, private organizations, employers, community groups, and government agencies. Applying for scholarships widely and early is one of the best strategies for reducing the overall cost of higher education.
Related Terms
Merit Aid
Financial assistance awarded by colleges based on a student's academic achievements, talents, or other accomplishments rather than financial need. Merit aid can take the form of scholarships, tuition discounts, or honors program benefits and can significantly reduce the cost of attendance. Some schools offer merit aid automatically based on your application, while others require separate scholarship applications.
Pell Grant
A federal grant awarded to undergraduate students who demonstrate exceptional financial need, as determined by the FAFSA. Unlike loans, Pell Grants do not need to be repaid, making them one of the most valuable forms of financial aid. The maximum award amount is adjusted annually and for the 2024-2025 academic year is $7,395.
Cost of Attendance
The total estimated cost of attending a college for one year, including tuition and fees, room and board, books and supplies, transportation, and personal expenses. Colleges use the cost of attendance to determine your financial need by subtracting your Expected Family Contribution. Understanding the full cost of attendance helps you compare colleges more accurately beyond just their listed tuition prices.
Frequently Asked Questions
What is Scholarship?
A financial award given to a student based on academic achievement, athletic ability, community involvement, or other criteria that does not need to be repaid. Scholarships can come from colleges, private organizations, employers, community groups, and government agencies. Applying for scholarships widely and early is one of the best strategies for reducing the overall cost of higher education.
Why is Scholarship important in personal finance?
Scholarship is an important education concept that helps individuals make better financial decisions. Understanding Scholarship can improve your financial planning and help you achieve your money goals.
How does Scholarship relate to Merit Aid?
Scholarship and Merit Aid are related financial concepts. Financial assistance awarded by colleges based on a student's academic achievements, talents, or other accomplishments rather than financial need. Merit aid can take the form of scholarships, tuition discounts, or honors program benefits and can significantly reduce the cost of attendance. Some schools offer merit aid automatically based on your application, while others require separate scholarship applications.
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