Outside Scholarships: What You Need to Know
Paying for college can be challenging, and outside scholarships — funded by private organizations — can help. Here’s a quick guide on everything you need to know about outside scholarships.
What Are Outside Scholarships?
While much of your finding for college will come directly from your institution or the state and federal government, outside scholarships come from businesses, nonprofits, community groups, and others. They’re awarded based on qualities like grades, financial need, community service, or talents. These scholarships can help cover college costs. Scholarship amounts can range from as little as $100 to the full cost of attendance. Some outside scholarships can be used for one year, while others are renewable for each remaining year of college.
To apply for outside scholarships, you’ll need to do some research on scholarships that match your interests and qualifications. We recommend starting locally before applying to national scholarships as the chance of receiving local scholarships is more likely.
Once you receive outside scholarships, depending on how they’re received, you’ll likely need to work with the college or university you will be attending to report and apply these scholarships to your financial aid package. When you do this, something called scholarship displacement can take place.
What Is Scholarship Displacement?
Some colleges reduce their financial aid offered if you are selected for an outside scholarship. This is called scholarship displacement.
How It Works: Colleges may reduce grants, loans, or work-study when outside aid is added.
Varied Policies: Each school handles this differently. Some reduce “self help aid, like loans and work study funding first, others cut grants.
What You Can Do
Ask Questions: Check the college’s policy on outside scholarships, and as always, reach out to admissions and financial aid counselors at the institutions you’re considering. They will be able to give you the best advice on how to handle these scholarships.
Advocate: If a college does practice scholarship displacement, request that loans or work-study be reduced first, rather than institutional grants and scholarships, as loans and work study is financial aid which you will need to pay back or work for. Schools practicing scholarship displacement may offer the opportunity to use an amount of your scholarship funds to purchase a computer in your first year.
Choose Smartly: Look for scholarships that fit with school policies, and if the scholarship can be given to you directly to use on books and other expenses, do that first!
Tips for Success
Start Early: Look for scholarships in junior year.
Apply Widely: Increase your chances by applying for many.
Tailor Applications: Highlight your strengths based on the criteria in each one.
Stay Updated: Check deadlines and new opportunities.
Outside scholarships can be a big help for paying for college. Just be aware of how they affect financial aid and plan carefully. With effort and organization, you can make the most of these opportunities.
