Which statement best describes a scholarship?

I'm starting to explore financial aid options and trying to understand the basics. What defines a scholarship compared to other types of financial aid?

A scholarship is a form of financial aid that is awarded to students based on a variety of factors, such as academic achievement, special talent, community service, or financial need. What sets scholarships apart from other types of financial aid — like loans or work-study programs — is that they do not have to be repaid. In other words, it's essentially free money to help you pay for your college education. Scholarships can come from numerous sources, including universities, non-profit organizations, corporations, and private benefactors.

There are two main types of scholarships: merit-based and need-based. Merit-based scholarships are typically awarded for academic prowess, athletic achievement, artistic talent, or involvement in extracurricular activities. On the other hand, need-based scholarships are distributed based on a student's financial situation. These scholarships aim to provide opportunities for students who might not otherwise be able to afford higher education.

One important note about scholarships is that they can be competitive, so it's crucial to start searching and applying early. It's also key to remember that every little bit can help reduce the overall cost of college, so don't overlook scholarships that might seem small — they can quickly add up!

Remember, you should never have to pay to apply for a scholarship. If a scholarship application requires a fee, it's likely not legitimate and should be avoided. Use trusted resources and platforms to find authentic scholarships that suit your needs.