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Scholarships: Everything You Need to Know

Pursuing higher education can be an exciting and rewarding experience, but it can also be expensive. However, there are scholarships out there that can help you pay for your education without accumulating debt. In this blog post, we will cover everything you need to know about scholarships, including what they are, how they work, the differences between a scholarship and a student loan, whether they are taxable, common scholarship scams, and how to get them.

What is a Scholarship?

A scholarship is free money that you can earn or win to put towards paying for your higher education. Scholarships are available for students pursuing all types of degrees, including community college, four-year undergraduate, and graduate students. Scholarships are the best form of financial aid because they do not need to be repaid ever. A merit scholarship is one specific type of scholarship that takes into account your academic profile, achievements, and abilities, as opposed to your level of financial need.

How Do Scholarships Work?

The process of searching and applying for scholarships is similar to the college application process. The first step is to get organized and create a list of scholarships that you are eligible for. Scholarship search engines and your school’s financial aid page are common places to search for scholarships. Once you have a list of scholarships, you will need to fill out a scholarship application, which is similar to a college application. Depending on the scholarship, you may also need to submit additional materials, such as essays, letters of recommendation, school transcripts, proof of FAFSA completion, a video, or a portfolio. While waiting to hear back, continue to apply for more scholarships.

How is a Scholarship Different from a Student Loan?

Student loans are different from scholarships in that the money you receive through student loans is money that you borrow and must repay with interest. This is in contrast to scholarships, which do not need to be repaid ever.

Are Scholarships Taxable?

According to the IRS, scholarships are not taxable if they are used to pay for tuition, fees, books, supplies, and equipment required for courses at the educational institution. Scholarships are taxable if the money is used or put towards education-related expenses such as room and board, travel, or optional equipment.

Common Scholarship Scams and How to Avoid Them

Scholarship scams can be tricky, but there are ways to avoid them. If an opportunity claims to be a scholarship but mentions having to pay back the winnings, it’s not a scholarship – it’s a scam. Other common scholarship scams require an application fee, ask for your credit card information, or guarantee that you will win if you apply. If you come across a scholarship that seems promising but something looks off, investigate the opportunity before applying. Look for previous winners on the application page, correct spelling and grammar, and an updated website.

How to Get a Scholarship

Getting a scholarship means that you not only found an opportunity that you are a good fit for, but you also met or exceeded the minimum requirements and proved to the committee through your submissions that you are deserving of the funds. To increase your chances of getting a scholarship, start by applying for opportunities that match your interests and skills. Ensure that you meet the eligibility requirements, and follow the application instructions carefully. Make sure that you submit all the required materials before the deadline, and don’t be afraid to ask for help from your school’s financial aid office, your guidance counselor, or your teachers.

Conclusion

Scholarships are an excellent way to pay for your higher education without accumulating debt. Merit scholarships take into account your academic profile, achievements, and abilities, while need-based scholarships take into account your level of financial need. When searching and applying for scholarships, make sure to follow the instructions carefully and investigate opportunities before applying to avoid