What is a Scholarship and How Does it Work?

What's a scholarship? Scholarships are awards given to students to help students pursue their further education by providing financial assistance to cover their costs. They are awarded to students who perform exceptionally in academics, sports or athletics and to students who have done social work. However, these aren't just based on such specific factors. There are several scholarships where one can take exams and have a chance of winning the award. Scholarships have numerous parameters and perks, some of which even provide air tickets, while others provide insurance.

What is a scholarship, and how does it work?

Scholarships are a form of financial aid for students provided by governments and private institutions. They are usually provided to students for further studies related to under-graduation or post-graduation courses. They are also awarded on a specific criterion based on academic merit, diversity and inclusion, athletic skill, and financial need. Scholarships usually show the good values of an organisation and also highly depend on their academic history or other activities like their achievements in sports or any extracurricular activities that are notable and will help in the student's career.  

Why is a scholarship important?

In 2023, education is one of the most important things one needs to get once a student has left high school or after graduation. Students start looking for further education opportunities in their preferred universities and for financial aid for students. The best type of financial aid for students is scholarships, which help the student in various ways. Unlike education loans, one does not have to repay a scholarship. 

1. Saves you from debt

Education loans are highly notorious for having high interest rates. This results in students being in debt even after graduation. This debt prevents students from following their future plans and hampers their life in some or the other way. This is where scholarships are beneficial. As one does not have to repay scholarships, they can be debt-free, as some scholarships cover housing and tuition fees. 

2. Improves performance

The student is not thinking about debt as they have a scholarship. This, in return, helps them focus on their academics and any other activities they are interested in. The thought of repaying loans and debt pressures many students, which in turn hampers their performance, and this causes them to drop out or fail most of their classes. 

3. Gives you a career advantage

When you receive a scholarship, this helps to boost your resume. A scholarship is an award that will prove your mettle to your future employers and help you get better opportunities than your classmates, as a select few only receive a scholarship.

How to find scholarships?

It’s quite evident how useful scholarships can be. But how do you find one? There are plenty of sources to find scholarships. These range from your university to your professional network. Here are the different sources you can use to find scholarships:

1. High school’s guidance office

2. Online scholarship search engines

3. College and university financial aid offices

4. Professional associations for your field

5. Community organisations (clubs, businesses, local foundations)

How to get a scholarship?

Getting a scholarship is one of the most important things for a student, as they usually cover housing costs, tuition fees, airway fares and even a maintenance fee every week. This helps students focus on their studies and social life, but how does one get a scholarship is the question that lingers in the minds of students. 

1. Know where to look

When you start applying for a scholarship, the first thing to do is go to the websites of the universities you want to apply to. Many universities have scholarships, which can easily be found on their websites. As you are checking your university's websites, you can also check websites like InternationalScholarships.com or FastWeb.com for scholarships according to your requirements, your location or even your financial situation. 

2. Prepare in advance

If you need a good scholarship, it is recommended to start preparing in advance. This is extremely important as some universities conduct scholarship weekends for selected students to come and be interviewed by the faculty to see if they will fit their university or college. Treating this as any other formal interview is recommended when you attend a formal interview. Dressing in formal attire is highly recommended and advised.

3. Work hard and stay motivated

As some scholarships are need-based more than merit-based, and sometimes they are both. It is advised to keep your performance up to the mark and not get demotivated in case of a certain defeat. It is known that merit-based scholarships are awarded to the candidate with the highest ratings and marks, so keeping your marks up is highly recommended. As you push yourself towards academic excellence, it is important not to get exhausted and to stay calm in every situation. 

4. Make yourself stand out from other applicants

The scholarship you might apply for will get hundreds or even thousands of applications. One can easily be on the same level as most candidates, so taking up leadership positions and being a team player is highly recommended. These qualities are highly valued, and one will get bonus points. 

5. Submit an exceptional scholarship essay or cover letter

As this goes without saying, the scholarship essay should be of the best quality and should be formatted correctly. The essay should grab the readers' attention and make them stay focused. There should be no grammatical or spelling errors, as this will instantly ruin all your work. 

What can a scholarship mean to a student?

A scholarship can mean a lot to a person as scholarships permit them to study ahead and help them achieve their academic and career goals. They can change the course of someone’s life, especially if they aren't from a privileged background. If you win a merit-based scholarship, you might feel responsible for keeping your grades up in order to keep up with your scholarship, which in return helps you to get good grades and find better career opportunities. Similarly, scholarships cover you financially and help a student have housing and tuition fees paid and basic expenses. Scholarships help students focus on their studies and not worry about money or private education loans, as they do not require repayment later. 

How do scholarships work?

Scholarships can differ in many ways. If it is a private scholarship, the money will be directly deposited into your student bank account. In contrast, some scholarships may send the money to the school, where they deduct money as required for tuition fees and housing or food plans if one lives on the campus. If you ever have scholarship money left at the end of your degree, the money is sent to you in the form of a cheque. Sometimes scholarships are not just awarded in the form of money, but instead, the tuition fees or housing costs are waived. Some scholarships even reimburse the costs of stationery and other academic expenses. 

What are the requirements for Scholarships?

There are many documents needed to apply for a scholarship. It is highly recommended that you make multiple copies of your documents and make designated folders so you can easily use the documents when needed. 

1. Certificates of your previous education (first degree, school leaving exams, etc.)
2. Letters of recommendation (work/academic)
3. Language certificate (e.g. TOEFL, IELTS)
4. Motivation letter
5. Resume 
6. You sometimes need to provide examples of your past work (an essay, etc.)

What is the difference between scholarships and grants? 

Scholarships and grants are usually clubbed together, but their goals differ. Scholarships have a ton of criteria like GPA or grade point tests like SATs or TOEFL; this specific sector of criteria comes under academic scholarship. Athletic scholarships include the performance of the student in the field of sports and their contribution towards their school or their educational institution. Merit scholarships include the excellence of a student in a particular subject or social contribution. Need-based scholarships are purely based on the student's financial condition, and factors according to them are considered. On the other hand, grants are solely based on the student's financial needs, where a background check of the student and their family is done.

Types of Scholarships

There are mainly two types of scholarships, and they are explained below:-

1. Merit Scholarships 

These types of scholarships where academic scores, community work or extracurricular achievements like high test scores, athletic or artistic excellence or even community service are highly rewarded. Students are usually required to meet specific criteria based on the scholarship itself.

2. Need-Based Scholarships 

Need-based scholarships are usually sought when one has financial needs and cannot pay for their education without help. Family income, assets and banking data and details are some of the factors considered. These scholarships provide financial aid for students.

Where should I spend my scholarship money?

Scholarship providers have strict guidelines on how to spend money. However, there are many open-ended scholarships where the money gets deposited directly into your account. Not spending money on concert tickets or leisure activities is highly recommended. 

1. Tuition

Many scholarships will give a student money for tuition fees, which usually takes the most money and can't be afforded by many. It is recommended to put tuition on priority when one gets their funds. 

2. Room and Board

Some scholarships even pay for your room and board. You can opt to pay for the room and board when you get into the university accommodation, and you can also opt for the meal plans. 

3. Education Expenses

Students also require funds for educational expenses like books and textbooks. Students can also opt for laptops, tablets and other peripherals for educational purposes. 

4. Living Expenses

If a student lives off-campus, this money can go into rent and groceries. This also covers their transportation expenses and healthcare expenses. One should always consult their scholarship guidelines to see if they cover the things mentioned above. 

What is the source of a scholarship?  

For scholarships, there are four primary sources:

1. Private scholarships

About 10% of all scholarships are derived from religious groups, charities, award functions, companies and organisations. These are minor sources of money, and there are many other major sources.

2. School Scholarships

One gets a state grant and respective scholarships when they are admitted to a university. This decision will depend on your test scores and results. When one submits their application for financial aid for students, the chances of them getting financial aid for students depend on the university officials. This makes up 35% of the scholarship sources. These typically comprise need-based grants.

3. Federal Scholarships

Federal Scholarships, which make up about 47% of all scholarships, are usually hard to get as they are for people who have weak financial status, and one needs to demonstrate their financial need. The various types of federal student aid include the Pell Grant, Federal Supplemental Educational Opportunity Grant (FSEOG), Education Tax Benefits such as AOTC and LLTC, Veterans and Military Student Aid, and federal loans such as the Direct Loan and the PLUS Loan.

4. State Scholarships

Every university has one scholarship available for students who enrol in their universities. These are mainly for local students and not international students and make up about 8% of the total financial aid for students. Since the scholarships available in your state might vary, you can head over to the official website of NASFAA to find out the latest information on scholarships in your state.

Scholarships Around The World 

There are different types of scholarships for studying internationally, and they differ according to the country you are pursuing. 

USA

There are multiple scholarships when one wants to pursue education in the USA. Some of them are:-

1. Clark Global Scholarship Program: The Clark Global Scholarship Program is a fully funded undergraduate academic scholarship by Clark University. This scholarship provides $15,000 to $25,000 per year for a four-year course. If a student requires more financial aid, their background check is required, and an additional $5,000 is provided. 

2. The Gates Scholarship Program: The Gates Scholarship Program is a highly selective last-dollar scholarship for outstanding, minority and high school seniors from low-income households. In addition to funding, this scholarship programme also helps students in various ways to ensure that they have every required resource from the first day of college to their convocation and in their transitioning process in their chosen careers. 

3. Yale University Scholarships USA: The Yale University Scholarship is a prestigious academic scholarship provided by Yale University, which ranges from a few hundred dollars to $70,000 per year. This academic scholarship is awarded to undergraduate, master, and PhD students. Yale is a prestigious school with high academic excellence and prestige statistics and comes under the Ivy League Schools. 

Check out our comprehensive blog to learn how to earn a scholarship in the UK.

UK

There are multiple scholarships when one wants to pursue education in the UK. Some of them are:-

1. Chevening Scholarship: Chevening is the UK government’s international scholarship programme. These merit scholarships are funded by the foreign, commonwealth and developments office for a one-year masters course in the UK. This academic Scholarship funds the full academic and tuition fees for one year and offers excellent networking programs. It also gives opportunities to explore the UK's culture. To make you understand more about, read our blog on Chevening Scholarships eligibility, requirements, and deadlines.

2. Commonwealth Masters Scholarships: The Commonwealth Masters Scholarship is awarded to students coming from developing countries who are part of the Commonwealth. This scholarship is only awarded to students who can't afford to study in the UK without any financial help. This scholarship covers the tuition fee of one year's tuition fees, the living costs, the airplane ticket and the travel costs required for the student. If a student has children, they are provided with a certain allowance and in certain conditions, they are also provided with warm clothing. 

3. STEM Scholarships: The STEM scholarship is awarded to women who have completed their undergraduate courses in STEM (science, technology, engineering or mathematics sector) fields. These merit scholarships cover many things like tuition fees, stipends, travel costs, visas and health benefits. It also provides special support to mothers and even offers english language support. If you have completed a PhD course in the last three years, you are also eligible for early academic Fellowships from The University of Edinburgh and the Imperial College of London.

Check out our comprehensive blog to learn how to earn a scholarship in the UK.

Australia 

There are multiple scholarships for pursuing an education in Australia. Some of them are:-

1. Australia Awards Scholarships: This scholarship is offered to students from developing countries to undertake full-time undergraduate or postgraduate courses. This scholarship generally covers tuition fees, an Economy class ticket to and fro from Australia, establishment allowance, an introductory academic program, Student Health Insurance and initial visa expenses. This scholarship also offers pre-course English language training fees, supplementary academic support, fieldwork, and reunion airfare. 

2. The University of Sydney International Scholarships: This Scholarship is awarded to students pursuing their Master's and PhD at The University of Sydney. It is a fully funded scholarship awarding students $40,000 in two equal instalments for one year course. This scholarship covers the tuition fees and the living allowance. This scholarship covers any course at The University of Sydney.

3. Australia Research Training Program (RTP) Scholarships: These scholarships are awarded to students internationally or domestically pursuing a master's or a PhD degree in Australia. This covers international tuition fees and a stipend. The holders of this scholarship will be awarded d AUD 28,092 per annum and a maximum financial support of AUD 43,882. The selection for this scholarship is based purely on merit and the people with relevant experience and publications. 

Check out our comprehensive blog to learn about Australian scholarships for international students.

We hope you have a smooth process in finding the perfect scholarship that suits your needs and the needs of your university. A detailed information review is always recommended by a professional as a lot of formalities and paperwork are involved in getting a scholarship. You can also read our blog on the top scholarship interview questions asked for your higher studies admission process in the University.