Unlocking Potential: Scholarships Have the Power to Transform Lives

What is a Scholarship?

A scholarship is a form of financial aid that helps students pay for their education without the burden of repayment. Unlike loans, scholarships are essentially gifts that can cover various educational expenses, from tuition and books to housing and other fees. Scholarships are available to students at all levels, from high school seniors to graduate students, and cater to a wide array of interests and attributes. Whether you excel in academics, athletics, or the arts, or belong to an underrepresented group, there are scholarships designed to support your educational journey. These awards can be based on merit, financial need, or specific qualifications, making it more feasible for students to attend college despite financial challenges.

Types of College Scholarships

There are numerous types of scholarships available, each catering to different student needs and achievements. Here are some common types:

• Merit Scholarships: Awarded based on academic excellence or a combination of academics and special talents, traits, or interests. These scholarships recognize students who have demonstrated outstanding achievements.
• Need-Based Scholarships: These scholarships are awarded based on financial need, helping students who might otherwise struggle to afford college or graduate school.
• Athletic Scholarships: Designed for students who excel in sports, these scholarships can cover a significant portion of educational expenses, allowing athletes to focus on both their sport and studies.
• Artistic Scholarships: Awarded to students who show exceptional talent in the arts, whether it’s music, visual arts, theater, or dance.
• Field of Study Scholarships: These scholarships are for students pursuing specific fields of study, such as engineering, medicine, or education, encouraging them to excel in their chosen disciplines.
• Minority Scholarships: Aimed at students from underrepresented racial or ethnic groups, these scholarships promote diversity and inclusion in higher education.
• Location-Based Scholarships: These scholarships are awarded to students from specific geographic areas, supporting local talent and encouraging students to contribute to their communities.

Many scholarship programs are designed to support students from various backgrounds and with different talents, ensuring that there are opportunities for everyone.

How Debt-free Financial Aid Makes Higher Education More Accessible

There are few things in life more expensive than a college education.

Non-profit organization College Board reports that the 2023-24 average estimated budgets for tuition and fees, housing and food, books and supplies, transportation and other expenses were:

• $19,860 for public two-year in-district students
• $28,840 for public four-year in-state students
• $46,730 for public four-year out-of-state students
• $60,420 for private non-profit four year students

According to the Education Data Initiative, nearly 88% of college students turn to some form of financial aid—and that number is growing by 1.15% each year. This often comes in the form of federal and private loans, which can be a burden for decades. Former President Barack Obama famously said he and his wife Michelle were paying off their steep student loans into their 40s.

Students should also consult their financial aid office to understand how scholarships can be integrated with other forms of financial assistance.

That’s why scholarships are such an important tool for students of all stripes. They can provide opportunities where none existed, motivate students who are on the fence about taking on debt, and open doors to new worlds.

Scholarships Are Everywhere

The Education Data Initiative shares that the US Department of Education awards an estimated $46 billion in scholarships every year. In addition, private sources award over $7.4 billion annually.

These diverse opportunities can apply to students across the spectrum of academic, athletic, and extracurricular achievements. Examples include:

• National Merit Scholarship Program: Awarded to 7,500 high school seniors every year based on PSAT/NMSQT scores and other criteria
• Google Scholarships: For women, underrepresented minority students, and people with disabilities who want to study computer science
• The Center for Women in Technology: $5,000 to $20,000 annually
• UNCF Scholarships: Aid for more than 10,000 Black students in categories such as STEM or entrepreneurship
• James Beard Foundation National Scholars Program: Ten students receive $20,000 each to pursue food-related education, such as culinary arts, agriculture, and sustainability
• The Coca-Cola Scholars Foundation: $20,000 each for 150 students based on academic merits, leadership skills, and service
• Bold.org: Numerous scholarships, including $500 each for winners of fans of celebrities such as Charli XCX, LeBron James, Chappell Roan, and Taylor Swift

While many government grants and scholarships are based on specific types of merit and family income, there are plenty of scholarship opportunities to go around for all kinds of students. It’s not true that you need to be at the top of your class, a varsity athlete, or an extracurricular all-star. Many scholarships go unclaimed because students either aren’t aware of them or think they wouldn’t qualify.

In fact, according to Sofi, a personal finance company, nearly $100 million in scholarships and $2 billion in student grants go unclaimed annually, mainly due to a lack of applicants.

Scholarships Are an Equalizing Force

The playing field is not equal in the world we live in. Students who experience socioeconomic hardship or discrimination due to their abilities, race, sexual orientation, or another aspect that sets them apart from the majority face increased hardships.

Many scholarships actively seek to reach these students. There are hundreds of endowments designed for Black students, Latin American students, LGBTQ+ students, and students with disabilities, among others.

It’s especially important to encourage students from marginalized communities to seek the support that’s available to them.

Scholarships Provide More Than Financial Aid

The right scholarship for the right student at the right time can have a tremendous impact on an individual, offering them an opportunity to further their education without taking on enormous debt.

However, many scholarships provide benefits that seep into all areas of a student’s life, including:

• Time to focus on studies: Many students take on part-time jobs to help pay for tuition or top up student loans and grants. A scholarship can offer them the time and space to direct all of their attention on their education. 
• Increased confidence and self-esteem: Knowing that an organization believes in you enough to fund part or all of your education is a huge boost for any student. It can help them enter their college years feeling more worthy.
• An enhanced CV: Earning a scholarship is a distinguished honor that signifies to other educational institutions and potential employers that a student is remarkable and worth investing in. A scholarship can give students a leg up in various ways as they carve out their future.
• Increased diversity in educational institutions: Scholarships drive diversity in higher education, enriching the learning environment with varied perspectives. They inspire students from underrepresented groups to pursue their educational goals, creating a ripple effect of positive change in communities.
• The chance to study at a better university: Sometimes students compromise on their educational goals in order to save money, choosing an in-state college when their dream institution is out-of-state. A scholarship can make that dream come true without putting them further into debt.
• Entry into a community: Many scholarship recipients are welcomed into exclusive communities where they can network, find mentors, and meet other students. These connections can open new doors and help recipients find a sense of belonging.
• Inspiration to pay it forward: Many scholarship recipients go on to engage in philanthropy and even set up their own scholarship funds. It’s powerful to be given financial and moral support when you really need it—and it can encourage students to give back when they can.
• Building community: Changing one person’s life has a ripple effect. A scholarship that makes a college education possible for an individual will also lift up their family and potentially even their community, particularly if they bring their knowledge and skills to an underserved area.

How Xello Helps

At Xello, we understand the tremendous impact of scholarships on students, their families, and communities. That’s why Xello Scholarships provides students with the tools and information they need to make the search process easier and more efficient.

As active users of Xello, students are already matched with opportunities based on their grade and state. To unlock even more scholarships, they can expand their reach by fully completing their profile in the Scholarship module. When they do that, their profile strength increases, uncovering better matches and access to more funding possibilities.

Students can easily filter and sort their matches, ensuring the highest value and best-suited opportunities based on their demographics, education plans, interests, and goals are prioritized.

They can also search all scholarships by keyword in the title. A badge that says, “It’s a match” will let them know if they meet eligibility criteria and application requirements.

Educators can also support their students by adding school-added scholarships which will be included at the top of a student’s scholarship matches.

Applying to college can be a stressful and challenging time. Xello Scholarships is here to help students unlock their own potential by knocking down financial obstacles.

Not a Xello user? Get more information and/or a personalized tour of the Xello Scholarship Module.