The 4 Types of College Scholarships

 
Four Types of College Scholarships

  1. 3rd PARTY SCHOLARSHIPS

    Free Money (usually) given by organizations (usually) directly to the college for indirect costs.

    • Colleges REQUIRE that the FA Office be notified if a scholarship is awarded to a student.

    • Usually the check is written out to the College.

    • Nearly always, colleges first apply the scholarship to Student Direct Loans ($5,500 the first year) – Remember every college will offer 1st year students $5,500 student direct loans.

    • CA private colleges: After the LOANS, scholarships are applied to lower the CAL Grant before going to the student – Magically, there is nothing left for the student! (smiles) – CA State Law requires it.

  2. 3rd PARTY SPONSORSHIPS

    Free Money (usually) given by a FEW non- profit organizations (usually) directly to the STUDENT for indirect costs.

    • Student is NOT required to report SPONSORSHIPS to colleges after their FA AWARD.

    • It’s like a bunch of people get together and agree to give a student money for college in a specified/organized manner.

    • Its often accidentally and mistakenly called a “scholarship’ and it does ACT like a scholarship.

    • West Angeles has a SPONSORSHIP FUND.....for members and a little bit for ACTIVE HIGH GPA, regularly attending program participant.

  3. INSTITUTIONAL NEED-BASED GRANTS

    Free Money (usually) given by colleges to “themselves” to lower direct college cost. $$$$ do not REALLY change hands!!

    • Each year need is re-assessed from FAFSA and the NBG can go down or sometimes up.

    • For CSU and UC, NBGs = CAL Grants, University Grants and Pell Grants for incomes < $48,000 for 3 family members.

    • SOME Private Colleges and Universities also award NBGs; HBCUs do not! Both HBCU and PWI’s do award Federal Pell Grants (Maximum = $5,890).

  4. INSTITUTIONAL ACADEMIC MERIT-BASED GRANTS

    Free Money (usually) given by colleges “to themselves” based on the student’s ACADEMIC MERIT (GPA and SAT/ACT)

    • Lowers direct college cost. $$$$ do not REALLY change hands!!

    • Some Colleges’ “scholarships” (i.e. Western Public Colleges, SPU & GCU) are Easier to Get than from Other Colleges’.

    • Hardest to Get: Private Colleges – including HBCU and UCs.

 
 

 

Top 3rd Party Scholarship Sources

  • Parent’s Job

  • Fraternities and Sororities

  • Utilities

  • Stores

  • Credit Unions

  • Your Church

  • Enrichment Programs – Like Us

  • Unions

  • Smaller Cities

  • School Districts

 
 
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The Difference of Direct Costs vs. Indirect Costs of College

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