Educate4Less

"Scholarship" gets Education Funding Solutions' vote for Most Confusing Word in college planning. There are basically two types of "scholarships" - those awarded by a college as part of the financial aid package (the result of financial "need" or "merit") and those sought after by high school seniors because they and their parents think they will make college cheaper.

Scholarships from colleges - Great, as they are generally money that need not be repaid. Scholarships found after hours & hours of student searching - eh, a lot less great for need-based aid eligible families. For these families, local scholarships (Rotary Club, Knights of Columbus, etc.) generally do not make college cheaper because the colleges view them as a "resource." Resources typically reduce financial aid award packages, dollar-for-dollar, in this case by the amount of the scholarship.

For more on this, request our FREE REPORT, "Scholarships - One Word, Two Meanings" here or register for a Workshop.