Paying for college
Scholarships & Grants
Scholarships and grants are aid you never repay. This section explains how they work, where to find them, and how to apply successfully.
Scholarships and grants are free money for school — you keep them without repaying. They come from the federal government, state agencies, colleges, and private organizations. Each source sets its own eligibility rules, amounts, and deadlines, so understanding each type separately helps you capture as much as possible.
Scholarships and grants share the most important feature in financial aid: you never pay them back. Beyond that, they differ considerably. A federal grant is based on financial need and governed by rules set in Washington. A merit scholarship from a private foundation follows that organization's own criteria. An institutional award is built into a college's own budget. Grouping them together here lets you see the full landscape of free aid before you decide where to spend your time.
The pages in this section move from understanding to action. You will find explanations of how awards are structured and what affects their size, guides to locating opportunities that match your situation, and practical help with the application and essay process. Two pages address topics students often overlook: the ways your own college may already be building free aid into your offer, and the legal and financial side of awards, including scams and tax rules.
A useful way to work through this section is to start with how scholarships and grants function, then move to finding and applying for them, and finish with the pages that match your specific situation or institution. Amounts, income limits, and deadlines change — this section tells you what each figure depends on and where to find the current one, rather than quoting numbers that may already be out of date.
What you need to understand first
Gift aid vs. self-help aid
Financial aid falls into two broad categories. Gift aid — scholarships and grants — does not have to be repaid and carries no work obligation. Self-help aid, covered in the Student Loans and work-study sections, comes with strings. Understanding this distinction helps you prioritize gift aid before turning to other sources.
Need-based vs. merit-based awards
Need-based awards are tied to your financial circumstances, typically measured through federal aid formulas. Merit-based awards are tied to achievement, talent, identity, or other criteria set by the awarding body. Many awards combine both factors. Knowing which type you are applying for tells you what documentation and evidence to prepare.
Who sets the rules
Federal grants are governed by statute and regulation, with rules published by the Department of Education. State grants follow each state's own agency rules. Institutional awards are set by individual colleges. Private scholarships are controlled by the sponsoring organization. Each source publishes its own eligibility criteria, and none of them coordinate their deadlines with one another.
The July 2026 aid rule change
Federal student aid rules changed on July 1, 2026. Students who first enrolled before that date may be subject to earlier rules; those who enrolled on or after that date fall under the new ones. Where a rule affects eligibility or award calculation, the relevant child page explains which version applies to you and directs you to the official source for current figures.
Stacking and coordination limits
Receiving one award does not automatically disqualify you from others, but awards can interact. Colleges may reduce their own aid when you bring in outside scholarships. Federal rules set limits on total aid relative to your cost of attendance. Each page in this section notes where stacking restrictions apply so you can plan your applications accordingly.
Scholarships as taxable income
Not all scholarship money is tax-free. The portion used for tuition and required fees is generally excluded from income, but funds used for room, board, or other expenses may be taxable under IRS rules. The rules depend on your degree candidacy and how you use the funds. The Scholarship Scams and Taxes page explains the framework and points you to current IRS guidance.
Guides in this section
How Scholarships Work
Federal and State Grants
Finding Scholarships
Scholarship Applications and Essays
Scholarships by Student Situation
Institutional and Merit Aid
Scholarship Scams and Taxes