How Can Students Find Scholarships and Grants for College?
Last reviewed: July 2026
Students find scholarships and grants by filing the FAFSA first, then searching free databases like College Board's BigFuture and Fastweb, checking with their high school counselor, and applying to local awards where competition is thinnest. Scholarships and grants are money you never repay, which makes them the single best way to cut college costs before borrowing a dime. The work is real (research, essays, deadlines), but the payoff often runs into the tens of thousands of dollars.
Key Takeaways
- File the FAFSA first; it unlocks federal Pell Grants, state grants, and most institutional aid in one application.
- The maximum federal Pell Grant for the 2025-26 award year is $7,395, per Federal Student Aid.
- Local scholarships have far fewer applicants than national ones, which raises your odds of actually winning.
- Free databases like BigFuture list tens of thousands of awards at no cost.
About the Author: Jeff Judge, CFP®, AEP®, ChFC®, CLU® is Managing Partner of Chesapeake Financial Planners in Forest Hill, Maryland. He has been helping families and business owners in Harford County and the Baltimore metro area navigate college funding decisions since earning his CFP® certification in 2013, by using Chesapeake Financial Planners’ signature process, the R.U.D.D.E.R. method™. Jeff often reminds parents that scholarship hunting is the only part of the college bill where a few weekends of effort can directly erase thousands of dollars of future debt.
What Is the Difference Between Scholarships and Grants?
Scholarships and grants are both free money you do not repay, but they are awarded on different grounds. Scholarships are usually merit-based, given for academic achievement, athletic or artistic talent, leadership, community service, or specific traits like an intended major or heritage. Grants are usually need-based, awarded according to your family's financial situation.
The largest grant program in the country is the federal Pell Grant, aimed at students from lower-income households. According to Federal Student Aid, the maximum Pell Grant award for the 2025-26 cycle is $7,395, and you do not have to repay it as long as you stay enrolled and meet the terms.
Some awards blend the two, mixing merit criteria with a financial-need test. The label matters less than the outcome. Both reduce what you actually pay for college without creating debt, so the goal is simple: stack as many of each as you can qualify for. For families weighing how aid interacts with their savings strategy, our guide on How does a 529 plan work and what are the rules for contributions and withdrawals? walks through how grants and 529 funds work together.
Why Should You File the FAFSA Before Searching for Scholarships?
File the Free Application for Federal Student Aid (FAFSA) before anything else, because it is the master key that unlocks the largest pools of money. The FAFSA opens the door to federal grants like the Pell Grant and the Federal Supplemental Educational Opportunity Grant, state grants (most states use FAFSA data to decide eligibility), and institutional grants from the colleges themselves. It also qualifies you for subsidized federal student loans, which carry far better terms than private loans.
A costly mistake I see every year: families assume they earn too much to qualify and skip the FAFSA entirely. The formulas are more generous than people expect, and plenty of middle-income households qualify for at least some aid. On top of that, a number of merit scholarships still require a completed FAFSA on file before they will release funds. Jeff Judge notes: "The families that skip the FAFSA because they assume they won't qualify are making the most expensive assumption in college planning — the formula is more forgiving than most people expect, and a form filed in October can unlock aid that is completely unavailable to anyone who files late."
File as early as you can. The FAFSA opens in the fall for the following academic year, and many aid programs run first-come, first-served once you clear the deadline. According to Federal Student Aid, submitting early protects your access to limited state and institutional dollars. High earners have their own playbook here; our piece on Can a high-income family qualify for financial aid, and what strategies are allowed? covers how to position assets and income.
What Types of Scholarships Should Students Pursue?
The strongest approach is to chase several categories at once rather than betting on one big national award. Spread your applications across these sources, because each has a different applicant pool and a different chance of paying off.
- College-specific scholarships: Many schools automatically consider admitted students for institutional awards based on GPA or test scores. Some require a separate application, so read each financial aid page carefully.
- Major-specific scholarships: Academic departments often fund students in fields like engineering, nursing, and education. These rarely show up on national databases.
- Local scholarships: Community foundations, businesses, civic groups, and religious organizations award money with far fewer applicants. This is where your odds are best.
- Employer scholarships: Some companies offer awards for employees' children. Have your parents check their HR departments.
- Identity-based scholarships: Organizations award funds based on heritage, gender, religion, or first-generation status.
- Talent-based scholarships: For athletes, musicians, artists, and others with specialized skills.
- Essay and contest scholarships: These require an essay, video, or creative project, which means fewer people finish the application.
Jeff Judge tells families that local scholarships are the most underrated category by a wide margin. National awards draw thousands of applicants per slot; a $2,000 award from a county business association might draw a dozen. Win three or four of those and you have covered a semester. The students who treat scholarship season like a part-time job in their senior fall almost always come out ahead.
Where Can You Search for Scholarships and Grants?
Start with free databases, then layer in the people who know about awards that never get listed online. Reputable national databases let you build a profile once and get matched to hundreds of opportunities. The biggest free options include College Board's BigFuture Scholarship Search, which catalogs tens of thousands of awards, along with Fastweb and Scholarships.com. Each lets you filter by major, state, GPA, and personal characteristics.
Do not stop at the databases. Your high school counselor frequently holds a list of local scholarships that never reach national sites. Professional and trade associations in your intended field often fund future members. Your local library may compile community award lists, and many states run their own grant programs you can find through the U.S. Department of Education state aid directory. Casting this wider net is how families avoid leaving free money on the table, the same discipline that protects retirement savings when you plan ahead, as we explain in How Do I Pay for College Without Ruining My Retirement?.
Frequently Asked Questions
Are scholarships and grants taxable income?
Scholarships and grants are generally tax-free when used for tuition, required fees, books, and supplies at an eligible school. Money applied to room, board, travel, or optional expenses can be taxable. According to the IRS, keeping records of how funds are spent helps determine which portion, if any, counts as income.
Do I have to repay a scholarship or grant?
No, scholarships and grants do not have to be repaid as long as you meet the conditions of the award. This is what separates them from student loans, which accrue interest and must be paid back. Some grants can convert to a loan only if you withdraw early or fail to fulfill a service requirement attached to the funds.
Can middle-income families qualify for need-based grants?
Yes, many middle-income families qualify for at least some need-based aid because FAFSA formulas account for family size, multiple students in college, and other factors. The only way to know is to file the FAFSA. Skipping it because you assume you earn too much is one of the most common and expensive mistakes families make.
When should students start applying for scholarships?
Students should begin researching scholarships in their junior year of high school and apply heavily during senior fall, though many awards are open to current college students too. Deadlines vary widely, so build a calendar early. Local awards in particular often have spring deadlines that catch unprepared families off guard.
How many scholarships should a student apply for?
There is no fixed number, but treating scholarship applications like a numbers game pays off. Applying to fifteen or twenty awards across different categories dramatically improves your odds of winning several smaller ones. Smaller, local scholarships are worth pursuing precisely because fewer students bother to complete them.
If you found this helpful, our College Planning guides cover FAFSA strategy, 529 savings, and how to fund college without sacrificing your own retirement. Download our college funding resources at chesapeakefp.com to map out a plan that uses free money first and borrowing last.
Disclosures
The information provided is for educational purposes only and should not be construed as investment advice. Investment strategies should be tailored to individual circumstances, risk tolerance, and goals. Past performance doesn't guarantee future results. Consult with qualified financial professionals regarding your specific situation.
Advisors associated with Chesapeake Financial Planners may be either (1) LPL Financial Registered Representatives offering securities through LPL Financial, Member FINRA and SIPC, and investment advisor representatives offering investment advice through Great Valley Advisor Group; or (2) solely investment advisor representatives offering investment advice through Great Valley Advisor Group and not affiliated with LPL Financial. Great Valley Advisor Group, and Chesapeake Financial Planners are separate entities from LPL Financial.
