What Factors Determine the Scholarship Amount a Student Will Receive?

There are many different ways of applying for and winning scholarships, just as there are many different ways that scholarship winners are determined and paid. Even more than high school guidance counselors or college admissions staff, administrators of the various scholarship providers are obviously the best informed as to what factors determine the scholarship amount a student will receive. Although policies and procedures differ from group to group, company to company and college to college, there are certain fundamental similarities among them all.

To arrive at a funding figure, scholarship grantors will consider not only the costs of various colleges for different courses of study, but some or all of the non-tuition expenses like books, fees, insurance, travel, etc. There are many levels of assistance even within a single scholarship program, and the variables under consideration cover the schools as well as the students. Some scholarships, as well as all federal and state financial aid programs, will consider family finances in the education cost equation. Known as the Expected Family Contribution (EFC), this amount will be factored in to the funding figures. But in addition to a student’s EFC, some scholarship funding may depend on the student’s eligibility and/or approval for financial aid, from one source or many. 

Federal aid programs include such familiar names as Pell Grants, as well as Stafford Student Loans, Supplemental Education Opportunity Grants, work-study programs and other assistance. Students applying for federal and/or state financial aid, even those who are also applying for scholarships to attend public or private institutions, have to fill out the Free Application for Federal Student Aid (FAFSA) form after January 1 every year. (The one exception is for students applying only for the HOPE Scholarship.) This makes them eligible for the coming school year, and after the aid amount is approved, students will include the figure in the scholarship applications packages. 

Even such seemingly mundane considerations as the geographical location of a student’s chosen school, the course of study, participation in exchange programs, extracurricular activities and special personal or medical needs will enter in to the scholarship funding formula. Scholarships range from basic (or even just partial) tuition coverage all the way to full scholarships that cover everything - full tuition, books, fees, living expenses and, in some cases, travel to and from home. 


The scholarship process is not a casino game, a lottery or a battle of mere brainpower. Although the specifics of the decision-making procedures will vary, the truth of the matter is that corporations, unions, interest groups, trade associations, foundations, educational institutions and charitable organizations all offer scholarships that balance the interests of students with their own. This is why some scholarships, like the “money for college” offered by the armed services, come with serious, nearly unbreakable strings attached. Students who win, say, the Acme Chemical Company scholarship for a four-year program in organic chemistry will have signed a contract with Acme to work for them upon graduation. The length of service, salary and other particulars would all be spelled out in this sort of arrangement. 

Of course, many scholarships come with no strings at all, like many programs for veterans. The money doesn't even have to be spent for tuition or books in many cases. However, it works out rather differently for most students, who get a good portion of their total college cost covered but have to assemble a number of scholarships, grants and, sometimes, loans in order to finish a four-year program. Once again, as in any other area of life, the race is not to the swift but to the steady, and with persistence and determination, most students who have worked hard enough to get good grades and good references will end up with a good scholarship package as well.