ARCHIVES :: NOVEMBER 2002 :: YOUR MONEY

Free Money
For College

You Don't Need to Be
Brilliant--Or Even a Senior--
To Win Scholarships

Illustration: Mark Matcho

SmartMoney.com

We don’t need to tell you that college is expensive. Last school year, total expenses per student for public college and universities were $11,976, while private schools ran $26,070, according to the College Board. Multiply that times four and then factor in tuition inflation ... and it quickly becomes clear why so many families rely on financial aid and student loans to help supplement their college savings.

But one source of funding that’s often overlooked is the thousands of private scholarships offered each year. Hundreds of millions of dollars are available—and you don’t have to be a star quarterback or straight-A student to qualify. Many families fail to realize that there are scholarships out there for just about everyone—from model-airplane enthusiasts to future engineers. With a little bit of determination and a decent application, private scholarships (which exclude money offered by colleges and universities) are relatively easy to win.

In fact, many of the scholarship committees are simply looking for a well-balanced student. “They really don’t like to see a person who sits in his bedroom studying all the time, focusing on himself,” says Michael Darne, managing director of e-commerce for Wired Scholar, a college-planning site owned by Sallie Mae. Instead, many seek out those who are giving back to their local community. So if you’re not already doing so, it may be worthwhile to sign up for a bit of community service, such as volunteering to organize local Special Olympics events. Not only will this provide fodder for your essay—and yes, most of these scholarships do require some type of personal statement—but the organization itself may even offer scholarships to those who lend a helping hand. (And, hey, doing good never hurt anybody.)

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 The caveat here is that most awards are relatively small compared with the staggering price of tuition. The average award ranges from $500 to $2,500, says William Nelsen, president of Citizens’ Scholarship Foundation of America, the largest private scholarship organization in the country. At a private university, this may do little more than pay for two semesters’ books. But when you’re talking about free money, every little bit counts.

You should also be aware that winning scholarship money could decrease your family’s total financial-aid package, warns Rick Darvis, a college planning specialist and financial planner. Many schools will decrease your aid dollar-for-dollar based on any money you’re awarded, including grant money, so that the aid can be made available to others. “Ironically, it’s the kids who don’t need the money who can often benefit the most” from scholarships, says Mr. Darvis.

Thanks to pressure from organizations like Citizens’ Scholarship Foundation, some schools are starting to ease up on this practice (officially called “displacement”). In some cases, colleges and universities have agreed that certain awards won’t affect financial-aid packages. In other cases, schools have agreed to reduce loan amounts—rather than grants—by the amount of the scholarship.

In the old days (before the Internet), the scholarship hunt was tedious at best. Students visited their high-school guidance counselors and thumbed through telephone-directory-size books looking for scholarships that might be appropriate. These days, a handful of helpful free sites such as Wired Scholar, FastWeb and the College Board provide scholarship databases, making research much easier.

These databases aren’t perfect: When we tested them, we inevitably were given information about some scholarships that weren’t appropriate based on the data we provided. Nevertheless, these search engines are well worth the effort since they are likely to uncover scholarships that you never dreamed existed. For example, did you know that the Ayn Rand Institute gives out up to $10,000 for the student who writes the best essay on “The Fountainhead”? Coca-Cola also provides money to students who are the first generation in their family to go to college.

But don’t just limit yourself to the scholarships that pop up on a Web search. You may have the better chances of winning money from local organizations such as churches, civic groups and small businesses, since fewer students are likely to apply. Also look for local chapters of larger organizations. The Citizens’ Scholarship Foundation gave out $135 million last year mostly through its local chapters, which give money only to students who live in their area. Your parents’ employers, unions and clubs—such as the Elks—are also great resources for scholarships.

Start Now

 The deadlines for most scholarships range from November through April of your senior year of high school. But even if you’re a bit younger, it’s not too early to start thinking about scholarships, says Wired Scholar’s Mr. Darne. A younger student can get a jump on the competition by researching which scholarships he or she may be eligible for a few years down the line. Another little-known secret is that plenty of scholarships are given out to high-school freshmen, sophomores and juniors. The money is simply held in a trust until the student has been accepted to college.

Also, don’t limit yourself to applying for just one scholarship. At $500 a pop, you will need to win a few of them to help lessen the tuition burden.