Scholarships are extremely attractive to pay for college because they need not be repaid. Scholarships can be based on academic performance, financial need, religious affiliation, minority status, heritage, community affiliations, or a unique set of criteria that's important to the organization providing funds.

Where to find scholarships

Look beyond colleges and universities for scholarships. Educational funding in the private sector has increased dramatically in recent years. Review mainstream sources of funds, and be creative.

Think about what makes your child different, and find groups that value that difference. Many organizations offer scholarships, here are a few examples:

• High schools or prospective colleges may award scholarships based on academic performance.
• Ethnic organizations often provide scholarships to outstanding students sharing their respective ethnic backgrounds.
• Many companies offer scholarships to children of their employees.
• Some houses of worship and religious denominations offer scholarships for students planning a career in the clergy.
• Some organizations sponsor scholarships to attract students to a field of study facing a worker shortage, or to encourage non-traditional or minority students to work toward a specific degree.

What might be required?

Each scholarship's application procedures and selection criteria are unique. It's important to understand college policy on scholarships, and how scholarships can affect the overall financial aid package.

Requirements to consider

• Applicants may be required to write an essay, pass a written exam, or complete a project demonstrating their potential.
• Some programs specify how scholarship funds must be used, set time restrictions for disbursing the funds, or set a ceiling on qualifying family income.
• In most cases, the funds will be paid directly to the college.
• Failure to meet certain requirements, such as maintaining a minimum grade point average (GPA), could jeopardize ones ability to keep the scholarship.
• Athletic scholarships are renewed annually. Recipients must usually continue to play the sport while maintaining a passing GPA.