General Scholarship: Definition, Types, and Significance

A scholarship is a form of financial aid awarded to students for further education. Scholarships are designed to reward, encourage, and assist students in pursuing academic excellence and leadership roles. Generally, scholarships are awarded based on a set of criteria such as academic merit, diversity and inclusion, athletic skill, and financial need, research experience or specific professional experience. Scholarship criteria usually reflect the values and goals of the donor of the award.

Introduction

In recent decades, scholarships have also become vital to public policy. They are increasingly used by governments and organizations to promote educational equity, economic development, and poverty alleviation. International frameworks such as the United Nations Sustainable Development Goal 4 note the key role of scholarships in expanding educational access for disadvantaged learners to meet national and global development goals. Scholarships are merit-based, need-based, and non-need-based monetary awards. They may range from paying a portion of your tuition to fully funding all costs linked to your college education. Scholarships do not need to be repaid and are a great way to access additional funds for college, significantly reduce your student loans, or need for work.

Historical Context

One of the earliest examples of organized financial support for students is at the oldest operating university, the University of Bologna, in the 12th century. There, students formed associations called nations based on their geographic origins and pooled resources in "loan chests" to help one another pay off debts and educational expenses. The origins of modern scholarships trace back to medieval Europe in the 13th and 14th centuries, where they took the form of charitable patronage. Initially, financial support for students was provided as a gift between wealthy families, with later funding extended to low-income students as acts of piety, penance, or mercy.

European philanthropic traditions continued as institutions of higher education emerged in the colonies in North America. Wealthy colonists held philanthropic roles in the sponsorship and patronage of grade schools and higher learning institutions. In 1643, Lady Anne Radcliffe Mowlson donated £100 to Harvard College to aid poor students in their pursuit of education, marking one of the first formal scholarship endowments in the United States.

In 1838, Harvard University created the Harvard Loan Program, one of the first institutional loan programs. It provided zero-interest loans to students unable to afford tuition. This model expanded across higher learning institutions to help students gain access to education through charitable lending. The 19th century also saw a broader emphasis on civic virtue and meritocratic ideals. The introduction of standardized testing became a turning point for scholarship distribution.

Read also: Unveiling the Scholarship

Passed the Servicemen's Readjustment Act of 1944 (G.I. Bill), which dramatically expanded access to education through government scholarships and loans for veterans. Scholarships have increasingly been recognized by governments and international organizations as tools for achieving development objectives, poverty alleviation, and promoting equitable access to education. The United Nations Sustainable Development Goal 4, Quality Education, emphasizes inclusive and equitable quality education and lifelong learning opportunities. Target 4.b specifically calls for the expansion of global scholarships available to students from developing countries, particularly in higher education, technical and vocational education and training, and STEM education. UNESCO's Incheon Declaration and Framework for Action for the implementation of SDG 4 describes scholarships as a means to promote international knowledge exchange and improve access for marginalized learners.

At the start of the 21st century, higher education faced unprecedented demand from individuals seeking upward economic mobility and from governments pursuing national development. However, rising enrollment and limited public budgets created financial pressures across education systems. Scholarships maintain an essential role in this new policy environment. As public subsidies decline, scholarship programs supported by institutions, international donors, and philanthropic groups have become central to preserving access to education for students from disadvantaged backgrounds.

Types of Scholarships

While the terms scholarship and grant are frequently used interchangeably, they are distinctly different. Scholarships are not repaid and are sometimes renewable for more than one year. Additional criteria, such as campus or community activities, volunteer work, work experience, and financial need can be considered during the selection process.

Here are the main types of scholarships:

Merit-Based Scholarships

These awards are based on a student's academic, artistic, athletic, or other abilities, and often a factor in an applicant's extracurricular activities and community service record.

Read also: Definitions of Western Scholarship

Need-Based Scholarships

Some private need-based awards are confusingly called scholarships and require the results of a FAFSA (the family's expected family contribution). All students are encouraged to complete a FAFSA.

Career-Specific Scholarships

These are scholarships a college or university awards to students who plan to pursue a specific field of study. Often, the most generous awards go to students who pursue careers in high-need areas, such as education or nursing.

College-Specific Scholarships

College-specific scholarships are offered by individual colleges and universities to highly qualified applicants. These scholarships are given on the basis of academic and personal achievement.

Bonded Scholarships

Some scholarships have a "bond" requirement. Recipients may be required to work for a particular employer for a specified period of time or to work in rural or remote areas; otherwise, they may be required to repay the value of the support they received from the scholarship. This is particularly the case with education and nursing scholarships for people prepared to work in rural and remote areas.

Athletic Scholarships

Awarded to students with exceptional skill in a sport.

Read also: UCLA Residency Program

Brand Scholarships

These scholarships are sponsored by a corporation that is trying to gain attention to their brand, or a cause. Sometimes these scholarships are referred to as branded scholarships.

Creative Contest Scholarships

These scholarships are awarded to students based on a creative submission.

"Last Dollar" Scholarships

Can be provided by private and government-based institutions, and are intended to cover the remaining fees charged to a student after the various grants are taken into account. To prohibit institutions from taking last dollar scholarships into account, and thereby removing other sources of funding, these scholarships are not offered until after financial aid has been offered in the form of a letter.

Music Scholarships

Some people receive scholarships for excellence in music, often taking into account their academic capacity. Some academic scholarships take into account musical skills, particularly if they are needed in the school's orchestra or marching band.

Scholarships for Current College Students

Scholarships are not only for those students just starting their college careers.

Scholarships for Military and Their Families

Support for the military and their families is a point of pride for many institutions, and you will find a number of scholarships designed around that same goal. For example, SNHU partners with Operation Homefront to offer full-tuition scholarships to military spouses.

Scholarships for Minority Groups

Cultural diversity is another significant factor for many scholarships.

Scholarships for Specific Majors

If you already have your major picked out, be sure to check for scholarships that are designed with you in mind.

Scholarships for Students with Disabilities

Students with disabilities may also find themselves eligible for scholarships intended to provide financial support for them.

Scholarships for Women

There are many scholarships available for women, and you don't need to be a traditional 18-year-old to be eligible for them.

Tax Implications of Scholarships

A scholarship is generally an amount paid or allowed to, or for the benefit of, a student at an educational institution for the purpose of study. A fellowship grant is generally an amount paid for the benefit of an individual to aid in the pursuit of study or research. If you receive a scholarship, a fellowship grant, or other grant, all or part of the amounts you receive may be tax-free. If filing Form 1040, Form 1040-SR or Form 1040-NR, and the taxable portion was reported to you in box 1 of Form W-2, include the taxable portion in the total amount reported on Line 1a of your tax return. If any part of your scholarship or fellowship grant is taxable, you may have to make estimated tax payments on the additional income.

Finding and Applying for Scholarships

As a UCLA student, it is important for you to look for scholarships that can help reduce the amount you need to work and borrow to fund your education. New opportunities arise as you enter your major, take up new activities, or join college organizations. Make sure that your scholarship search is broad, including outside or private scholarships, in addition to UCLA scholarships. The UCLA Center for Scholarships and Scholar Enrichment is a good place to start, as they provide a list of curated scholarship search engines, workshops, and individualized writing support sessions. There is no single source that can give you a list of all the scholarships for which you may be eligible. It is best to consult several sources, such as scholarship search engines, scholarship books, your high school, and community organizations. Outside agency or private scholarships (from foundations, organizations, groups, and individuals) can also be an excellent way to help fund your education. If you're searching for external scholarship opportunities, you may come across many different sites that can simplify the search process. However, some of these scholarships may be misleading or fake.

Helpful tips for your search:

Try to plan ahead when applying for scholarships. We recommend you start working on applications 6-9 months before the academic year you hope to receive the funding.
Save time and energy by creating a “scholarship resume” that you can use to quickly complete common application questions.
Many scholarships are based on criteria other than, or in addition to, financial need and academic achievement. Take note of your interests, hobbies, background, work experience, career goals, etc.
Be proactive and diligent in applying for scholarships. It takes a lot of work, but in the end all your efforts will really pay off.

What to Do If You Receive an Outside Scholarship

If you receive a private scholarship from an outside agency/donor, follow these steps:

Request that checks are made payable to UC Regents or UCLA.
Give the donor your 9-digit UID (UCLA Identification Number) and ask them to include it with your award.
Have the donor include a letter explaining the award terms when the scholarship check/payment is sent to UCLA.

The Value of Scholarships

Perhaps the best benefit of getting a scholarship is that the money awarded to you can help you pay for college. You may not need to borrow as much. This is because scholarship money awarded to you does not need to be paid back. As a result, you may not need to take out as much in student loans and, therefore, owe a lender less.

You can keep applying for them. Unlike the Free Application for Federal Student Aid (FAFSA), which is important to apply for annually, you can seek out scholarships year-round. Just because you've been awarded one scholarship does not mean you can't qualify for others that same year.

How they're spent may be up to you. While some scholarship money will be sent directly to your college's financial aid office, others may go directly to you. You can then decide whether you want to apply your scholarship to your tuition or textbooks or some other fee.

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