What It Means
A scholarship is money toward the cost of school that a student never pays back. Federal Student Aid's site, studentaid.gov, says scholarships are usually awarded for a student's grades, skills or abilities, and they come from colleges, employers, community and religious groups, foundations and states. Each one sets its own rules, deadline and application, which often includes an essay.
Try It: Check a Scholarship Offer for Scam Signs
Tick anything the offer says or asks for. These are warning signs from the FTC.
None ticked. Still check who runs it before you share personal details.
The FTC says never pay to apply and that nobody can guarantee a scholarship. Walk away and check with a school counselor or financial aid office.
How Parents Say It
- "She got a $2,000 scholarship from the credit union."
- "I've got three scholarship essays due this month."
- "Is that scholarship legit or a scam?"
The Breakdown
Worked example. A student stacks local and college awards for one year (Buhata's example numbers):
| Source | Amount |
|---|---|
| College merit scholarship | $5,000 |
| Community foundation | $1,500 |
| Parent's employer | $1,000 |
| Total scholarships | $7,500 |
If the college costsCost of collegeWhat a year of college costs, tuition and fees plus housing, food, books and travel; College Board's 2025-26 average budget at a public four-year college in-state is $30,990. See more $28,000 a year, $28,000 minus $7,500 leaves $20,500 for grants, savings, work or loans. Read whether each award is for one year or renews, and what it takes to keep it.
Where studentaid.gov says to look
- Your college's financial aid office
- The high school counselor's office
- Community and religious organizations, local businesses and community foundations
- Your employer or a parent's employer
- Your state's higher education agency
- The U.S. Department of Labor's free scholarship search tool
- Groups tied to your interests or field
Studentaid.gov notes that local awards with fewer applicants may give you a better chance.
Good to Know
The Federal Trade Commission's advice is plain: never pay to apply for a scholarship, and walk away from any company asking for a processing or redemption fee, because nobody can guarantee a scholarship. Ask the college's financial aid office how outside scholarships change the rest of your aid package before you accept one.
FAQ
Do you have to pay back a scholarship?
No. Studentaid.gov describes scholarships as money you don't repay. Read each award's conditions, such as a GPA it asks you to keep.
Where can I find scholarships for high school seniors?
Start with your school counselor, the colleges you're applying to, local businesses, community foundations and your parents' employers, then use the Department of Labor's free search tool. Studentaid.gov lists all of these.
How can I tell if a scholarship is a scam?
The FTC's warning signs include a fee to apply, a guarantee, a request for a card or bank number, and being named a finalist in a contest you never entered. The FTC's rule is never to pay to apply.
Do It in Buhata
Calendar, Countdown, Tasks
Put every scholarship deadline on the Buhata Calendar, add a Countdown to the next one, and keep a Task for each essay and recommendation letter.
Open BuhataRelated Terms and Categories
- FAFSA
The Free Application for Federal Student Aid, the U.S. Department of Education form a student files each year to apply for federal aid for college or career school.
- 529 plan
A state-sponsored, tax-advantaged account for education costs, where growth is free of federal income tax when spent on qualified expenses.
- Federal student loan
A student loan made by the U.S. Department of Education, with a fixed rate set by law and federal repayment plans and protections.
- Student loan
Money borrowed to pay for college or career school, repaid with interest after you leave school; it comes from the federal government or a private lender.
- Phishing
A scam where someone sends an email or text that looks like it's from a company you trust, to trick you into giving up passwords, account numbers or other details.
- Extracurricular activities
Organized activities a child does outside regular class time, like sports, music, clubs or scouts, usually after school or on weekends.
Sources
Federal Student Aid (studentaid.gov), "7 Options if You Didn't Receive Enough Financial Aid"; studentaid.gov, articles tagged "Scholarships"; Federal Trade Commission, "How To Avoid Scholarship and Financial Aid Scams"
- studentaid.gov/articles/financial-aid-not-enough
- studentaid.gov/articles/tag/scholarships
- consumer.ftc.gov/articles/how-avoid-scholarship-and-financial-aid-scams
Last updated .