Private scholarships can help students cover a portion of college costs.
Across the country, community organizations, foundations, non-profits, and corporations offer private scholarships to help students pay for college. Also known as outside scholarships, these funds are obtained through a separate nomination or application process. And they can make a significant impact in helping cover college costs.
Where to Look
The High School Guidance Office
School counselors often keep an updated list of local scholarships, either in paper form or on the school’s online portal. Compared to national scholarships, local scholarships only attract a small pool of applicants¾those eligible students within the region¾and are therefore generally easier to win.
Work
If you’re a student with a summer or part-time job, see if your workplace offers private scholarships for staff members headed to college. And have your parents check with their places of work for private scholarships dedicated to the children of employees.
Professional Associations
Are you aspiring to work in a specific career field? Research professional groups related to that vocation. Many offer outside scholarships to students interested in pursuing a job in that line of work. Does your son want to teach one day? Look for teacher associations in your area. Does your daughter hope to become a doctor? See if any medical associations are offering money to help young, aspiring physicians.
Local Organizations
Many local organizations have their own websites where you can find information on the scholarships they offer. Start by checking the websites of your local Elks, Rotary Club, and PTA organizations.
Search Engines
There are several reputable websites that provide scholarship search tools. Try the ones listed below. As well, check out all of MEFA’s articles that highlight upcoming scholarship opportunities.
To get the most out of scholarship search engines, you’ll want to create an account. You’ll usually be asked to provide information such as your grade level, GPA, SAT® score, colleges of interest, heritage, activities, and academic honors. Some websites allow you to enter parent activities that could help you qualify for scholarships, such as having a parent who served in the military. You also can fill in personal attributes that allow you to search for scholarships based on everything from being a twin to your political party.
Cost
Never pay a fee to apply for a scholarship. Plenty of free online search engines exist (see above), and they have the same private scholarships as those that require a fee.
Payment
Some scholarship agencies send funds directly to the student. Others will find out the college where the student plans to or is already attending and will then send the funds directly to the school. If you have a college bill due and you plan to have your scholarship cover part of your expenses, alert the financial aid office of your expected scholarship funds.
Taxes
Scholarships only need to be reported on your tax return as taxable income if they exceed your qualified educational expenses, including tuition, fees, books, and supplies. Contact your tax preparer for additional details.
The Financial Aid Effect
Once you receive a private scholarship, you should alert the financial aid office at each college to which you’ve applied. If you’re receiving need-based financial aid, your private scholarships will need to fit within the total amount of your financial aid eligibility, which is determined by the college cost and your family’s Student Aid Index (SAI). The financial aid staff will work with you to maximize the amount that you can receive in private scholarships without affecting your financial aid.
Keep in mind that most private scholarships are only awarded for one academic year. So if you win a scholarship for freshman year, you shouldn’t count on receiving it for future years unless you know it’s renewable.
For more information on earning scholarships, check out our scholarship tips. And for a full overview on the topic, watch our recorded webinar, Applying for Private College Scholarships.
