The bulk of scholarships and grants (free money that doesn’t have to be repaid) is awarded based on (1), student financial need and (2), student academic success. While other types of financial aid exist for students with exceptional talents (e.g., athletics, music, leadership, etc.) the majority of scholarships and grants fall into two categories: (1) need-based aid and (2) merit-based aid.

This blog post focuses on need-based aid, what it is and how to apply for it.

The decision to award need-based scholarships and grants is based solely on a family’s financial situation. Student eligibility is based on their personal income and savings and their family’s income and financial assets; academic grades are not considered.

Students receiving need-based aid have a financial need beyond what their family can afford to pay. However, students should not rule out applying for this type of aid because they think their parents’ income is too high; the majority of students do qualify for some amount of need-based aid.

Need-based scholarships and grants are offered by colleges and universities, federal and state governments, and private national, regional, and local organizations. Below are descriptions of the types of need-based aid with instructions on how to apply for each.

1. Campus-Based Scholarships and Grants (from colleges themselves). Application for need-based awards from colleges typically is automatic when students submit their application for admission AND the Free Application for Federal Student Aid (FAFSA). However, some private colleges and universities require an additional short form and/or the CSS/PROILE financial aid application.

2. Federal Student Aid. – Application for federal financial aid is automatic when the FAFSA is submitted. Students should accept all offers of federal grants because grants are “free money” that don’t require repayment. (If a student’s federal financial aid package includes federal loans, colleges will send additional forms (and promissory notes) for students to accept or reject the loans offered.)

Federal grants include:

- Federal Pell Grants.

- FSEOG Grants (Federal Supplemental Educational Opportunity Grants).

- Academic Competitive Grants (AC Grants)

Also, a Federal Work Study (on-campus employment) may be offered as part of the federal financial aid package .

3. State Student Aid. Application for state financial aid is usually automatic when the FAFSA is submitted, however, California students are required to submit the GPA Verification form (a simple, 1-page form,) in addition to the FAFSA application.

4. Private Scholarships. Each private source of funding has its own application process and criteria for winning. Ask your high school counselor or the sponsors of scholarships for details regarding applications and criteria. Typically, scholarship organizations require submittal of an application, essay, letter(s) of recommendation, and grade transcripts; submittal of a student résumé may be optional. Many local and regional scholarship organizations also require an interview in front of a selection committee.