Your Guide to Applying for Need Based Scholarships

The high cost of education can easily make low-income students feel like they have no chance at higher education. Fortunately, need-based scholarships provide a surprising amount of financial aid. Nearly half of yearly Pell Grant awards go to families with less than $20,000 in annual income.

In other words, you have tons of scholarship options that guarantee support for those in difficult financial straits. But don't expect these scholarships to fall into your lap just because you fit the bill for financial need. All types of scholarships require a bit of elbow grease to ensure your best chance at winning them.

If this is news to you, then you've come to the right place. Consider this your comprehensive guide on need-based scholarships. Follow along as we teach you which need-based scholarships are available to you, and how best to go about applying for them.

What Are Need-Based Scholarships?

The name is self-explanatory. Need-based scholarships go to students based on their individual financial need rather than factors that concern merit. Unlike other scholarships, the primary hurdle in the way of obtaining them is that applicants must prove that they are low-income students.

To be clear, we are not talking about any sort of student loans, here. Some may confuse need-based scholarships with government subsidized student loans. These are loans where the government subsidizes part of the interest to allow you to pay them off faster, but are not need-based scholarships.

Repayment and Taxation

Need-based scholarships do not require you to pay them back, in full or in part. And some of them do not require you to spend them on your education. That said, we advise against using scholarship money for frivolous purchases.

Some will have additional stipulations on how you spend the money. For example, any Pell Grant money that you spend on non-educational purposes becomes taxable income.

Availability

There is typically a limit to these need-based scholarships. The institution that issues them will set an amount that they can give out. Once that amount runs out, there is none left.

That means from year-to-year, you may receive more or less for each need-based scholarship. This has to do with demand and your changing financial situation. If your family comes upon a financial windfall (such as a much higher-paying job), that could affect your final payout.

Limitations

Some need-based scholarships may only support you in your chosen career or university. Others will be money in the bank that you can use as you see fit. Some may allow you to study abroad, while others may limit you to a specific institution or state.

In certain situations, the issuer may apply the scholarship directly to your tuition. This tends to be the case with university-based scholarship options. If you are in need of money to pay for food and housing, you would need to search for a scholarship that gives you cash.

Types of Scholarships for Those in Financial Need

Let's talk about some of the most common need-based scholarships you can find. Need-based scholarships come in several general categories:

• -Federal financial aid
• -State-based financial aid
• -Financial aid specific to your educational institution
• -Financial aid from private institutions and foundations

We encourage you to apply for as many different types of scholarships as you can. It's impossible to know which ones you will get. But there's nothing stopping you from getting financial aid from multiple sources at once.

Federal Pell Grants

Federal Pell Grants are the gold standard when it comes to need-based scholarships. These are for undergraduate students only, as well as those who have not yet graduated with anything above an associate's degree.

This is a lump sum that the federal government deposits into your bank account for you to spend as you please. The maximum amount you could potentially receive is $6,895.

Aside from exceptional financial need, the only other requirement is that you are not incarcerated or involved in an involuntary civil commitment. Sexual offenders also cannot receive this grant.

How to Apply for Federal Pell Grants

Your consideration for Pell Grants comes standard when applying for federal financial aid. Use the same FAFSA website as you might when applying for student loans.

If you have already done this, then you are all set to go! You will get a notification by email if you qualify for a Pell Grant. Make sure to use accurate, up-to-date information in the FAFSA system for the best chances of success.

State Financial Aid

Depending on the state you live in, there may be many different need-based scholarships and grants. For example, South Carolina has the State Need-Based Grant. You can receive up to $1,500 per individual semester if you qualify.

Needless to say, your mileage may vary. You may live in a state that does not provide many need-based scholarships. Visit your state website and find out what options are available, and how to apply for them.

Note, many states use FAFSA to issue their financial aid options. But some states do have their own websites and systems where you will need to apply. It's a good idea to apply through FAFSA and your state's scholarship system just in case.

Educational Institution Financial Aid

There is a very good chance that your educational institution provides some form of financial aid. They may not be very forthcoming about it. You may have to dig around their website in order to see what options are available to you.

Some universities will award financial aid automatically, without any application on your part. When your tuition bill arrives, they may knock part of the price off with the scholarship by default.

It goes without saying that you shouldn't assume that this is the case. Do your due diligence and find out what options your university or college offers, and apply accordingly.

This type of financial aid varies wildly from place to place. Just because it was easy to get accepted doesn't necessarily mean you will get automatic financial aid.

Make a visit to your university's financial aid or bursar's office. There will likely be someone there who can explain what your options are and how you can apply.

Private and Foundational Financial Aid

Certain wealthy individuals and estates wish to help low-income students like you get the best education possible. They will have their own grant and scholarship programs separate from governments or universities.

A key difference between these types of scholarships and others is that merit is a factor. The Bill & Melinda Gates Foundation offers scholarships for low-income and minority students. But even if you tick those boxes, you will need to prove your worth against other students in the same category.

Application and Requirements

Using the Gates Foundation as an example, here are some of the requirements:

• -You need to be at the top of your class, at least in the top 10%
• -You need to have demonstrated a high degree of leadership ability through community activities
• -You need to have excellent personal qualities (maturity, perseverance, etc.)

The bigger the payout, the more competitive and time-consuming it may be. The Gates scholarship has multiple phases. It may take several months until you reach the final phase and get selected for award distribution.

The great thing is that you can apply to as many private scholarship funds as you desire. This maximizes your chances of success even if multiple scholarship funds reject you.

Again, don't expect easy acceptance just because you fall into the right demographics. This is a false sense of security that will lose you many valuable opportunities. You will need to prove your worth no matter which humble upbringing you come from.

Tips When Applying for Need-Based Scholarships

You have a lot of options at your disposal. And as we said, none of them will happen without some effort on your part. Let's discuss things you can do to ensure optimal success as you apply.

Bolster Your Resume

Whether you are applying for scholarships now or will be in the future, come prepared. Too many students waste their free time partying in high school when they could be building a resume. Find community activities that teach you new skills and allow you to help build up the locals and the community.

Here are a few examples of the things you can do:

• -Volunteer
• -Join student associations
• -Join Honor associations
• -Take part in international student programs
• -Get high grades
• -Take AP courses
• -Participate in career-based associations like ROTC

In essence, you need to set yourself apart from your competition. All of the above make you look like an engaged, valuable member of your community. It proves to any scholarship board that you will make the most of your education and reach incredible heights.

Having a high GPA and staying out of trouble are important. But most applicants will have achieved that already, meaning you need something else to set you apart.

Apply for Everything

If there's one thing you should remember when applying for scholarships, it is this: it never hurts to try. Just because it may seem unlikely that you will receive a certain scholarship doesn't mean you shouldn't attempt it. Take the effort, and you may be surprised how successful you are.

There are perhaps an infinite amount of need-based scholarships, particularly private ones. Local businesses, corporations, and wealthy foundations all give out small scholarships. Some of these do not get very many applicants, meaning you have a higher chance of success.

Find a list of scholarships that you can apply for, and apply for as many as you possibly can. If you apply for 100, but you only win two, that's a huge success. Apply for 200, and you may just get accepted to four, and so on.

Be Honest about Your Situation

Honesty is the best policy, especially when it comes to scholarship applications. It's not just about your personal integrity. There could be some real consequences if you lie on scholarship applications.

In some cases, scholarships may vet you and disqualify you for misinformation. This could also disqualify you from future scholarships. In the most extreme cases, the issuing institution may revoke your scholarship.

Once you lie, it's almost impossible to get your reputation back. You may struggle to get acceptance at other institutions. One little lie could eventually ruin your education entirely.

It's not worth it to exaggerate or make up details about your financial need. Trust us, even if you aren't severely disadvantaged, you will find plentiful opportunities for scholarships.

Ask for Help

While you shouldn't have a friend write your scholarship essay for you, you can ask them for pointers. If you are struggling with an application, consult academic advisors. Even better, visit your favorite academic society and speak with students who applied as well.

Some scholarship applications can be very difficult and highly competitive. There's no shame in asking for assistance.

Further, do not allow shame to prevent you from getting financial aid. Many students feel that their difficult financial situation makes them somehow less worthy. This is not the case at all!

Everyone has different upbringings and financial situations. Many students from abject poverty have risen high in academia and won incredible honors. Even students who arrived as refugees and did not speak English now are at the top of their industry thanks to perseverance.

Join Honor Society

Need-based scholarships allow students with significant financial disadvantages to study. There are a wide variety of options available to those who come from a tough upbringing. Take advantage of all the options available to you and keep the above tips in mind when applying for them.

The Honor Society provides you with information on scholarships, academic advice, and special member perks. Join us today and become part of one of the most inclusive organizations around.