Understanding Private Scholarships and Grants: What You Need to Know

When it comes to funding college, scholarships and grants are highly appealing because they don’t need to be repaid. These funds can come from colleges themselves or private sources, but there’s often confusion about how private scholarships and grants (private aid) actually work—and their real impact.

Private Scholarship and Grants - Are funds from entities that are unaffiliated with any given college and usually have very specific criteria.  You must apply to these separately, monitor compliance with any criteria (gpa, credit hours, etc.) on your own. Scholarship providers may pay the school directly or send the money to the student. If paid to the student, they should use the funds responsibly for eligible college expenses.

The Reality of Private Scholarships and Grants

You’ve probably seen ads or social media posts claiming that “hundreds of millions of dollars in scholarships go unclaimed every year!” This sounds promising, but the reality is more complicated. Many families build their college finance plans around private aid, only to be disappointed by the results.

Here’s why:

• Most Private Scholarships/Grants Are Small. The majority are for less than $2,000, and only about 250 scholarships nationwide offer more than $25,000. These larger scholarships and grants are typically reserved for highly talented students in competitive, business-sponsored programs (think STEM talent funnels) or low-income students with exceptional need.

• They Go Unclaimed for a Reason. Many scholarships and grants   have ultra-specific eligibility requirements or lengthy, complex application processes. This discourages applicants, allowing organizations to advertise scholarships without actually paying them out.

• Typical Award Amounts Are Modest. The majority of private scholarships awarded range between $250 and $1,500, with most clustering near the lower end.

Important Facts About Private Scholarships and Grants

Before you spend too much time chasing private scholarships, consider these critical points:

1. Private Aid Make Up a Small Slice of Financial Aid.
   Only about 10% of financial aid comes from private grants/scholarships, and less than 0.3% of students receive "full-rides".

2. Private Aid Can Affect Your Financial Aid Package.
   Many colleges reduce your institutional aid if you receive private grants/scholarships, because they are considered additional income. They may reallocate those funds to other students, effectively canceling out the benefit of your private award.

3. Smaller, Local Scholarships Are Less Competitive.
   Scholarships and grants under $1,000 and those in specialized fields (like STEM) often have fewer applicants, increasing your chances of winning.

4. Volunteer Work Can Boost Eligibility.
   Many scholarships and grants require community service or favor applicants with a history of volunteering. This is an area where some students are automatically disqualified because they don’t meet the criteria.

Should You Apply for Private Aid?

While private scholarships and grants shouldn’t be the cornerstone of your college funding strategy, they can still be worth pursuing—especially if you’re strategic about it.

A Good Plan for Students:

• Dedicate 1 hour every weekend or every other weekend during late junior and early senior year.

• Focus on applying to 1-3 scholarships you are eligible for each time.

• Target local scholarships and smaller awards (under $1,000), as they tend to have fewer applicants.

This approach is particularly helpful for middle-class families earning $100,000–$200,000 annually, as they often receive less institutional aid and pay more out of pocket.

Helpful Resources for Finding Scholarships and Grants

Here are some great tools to help you search for private aid:

Scholarship Search Websites:

• Going Merry

• Scholly

• Scholarships.com

• Fastweb

Sites for Colleges and Scholarships:

• College Raptor

• BigFuture

Private scholarships and grants can be a useful supplement to your overall college funding strategy, but they’re not a magic bullet. By focusing your efforts wisely and managing expectations, you can make the most of the opportunities available without losing sight of the bigger picture: finding affordable college options that work for your family.