Merit Based

• A merit based scholarship is the award of money for college, which can be based on a number of different factors and does not have to be repaid. Some are to reward academic achievements, while others are awarded for excellence in a particular talent, such as sports or music. These scholarships can be applied for through a variety of avenues. Many private organizations offer scholarships to the children of members or to the community. The college that you will attend also may allow you to apply for a university sponsored scholarship due to your impressive academic performance in high school.
  
  

Need Based

• Need based scholarships are for students who demonstrate financial need. The financial aid office of the university will review your situation and determine if your family qualifies to receive funds. Some colleges will give you enough scholarships, combining merit and need based ones, that equal 100 percent of the tuition, so that the cost of a higher education is not a burden on you or your parents. However, if your family's situation changes during the course of the school year and more income is earned, your need based scholarship amount may change.
  
  

FAFSA

• Most universities require you to complete the Free Application for Federal Student Aid (FAFSA) prior to determining if you qualify for a need-based scholarship with the institution. FAFSA calculates your family's estimated contribution to your education by using your information regarding income, savings, assets and other criteria for you and your parents. At the same time, the application is used to determine if you qualify to receive additional aid through state programs, too, all of which do not have to be repaid. Even if you don't think that you will qualify for financial aid, some lenders require that you complete the FAFSA prior to applying for a student loan.
  
  

Other Options

• If you do not qualify for and federal or state student aid programs or if you are not receiving enough scholarships to pay for your schooling, you or your parents can apply for a student loan. There are several types that are from private lenders or backed by the federal government. Once you are approved, you will not be required to pay it back until after you graduate. Read the loan disclosures carefully so that you can determine which program is the best for you.