Myth: There Are Many Unclaimed College Scholarships Every Year

bank vault

Flickr user Brook Ward

We’ve all heard it. This idea that there are billions of dollars that are hiding away somewhere for college education. While there are indeed billions of dollars awarded every year, the myth of the unclaimed scholarship money is just that—a myth.

Though there is some debate, this myth is thought to have its origins in the 1970s, when an academic study concerning employer-paid tuition assistance estimated that over $6 million in benefits went unclaimed every year. The figure was misreported as unclaimed scholarships.

College Scholarships

Private companies then used this myth to convince students to pay fees to find these scholarships until a judge ruled that it was fraudulent. These days, there are many free, reputable sources available for scholarship searches. While some scholarships do indeed go unclaimed, it is far less than the myth states. The Pell Grant is one of the most under applied-for forms of financial aid due to students’ misconceptions about how financial aid is awarded. The other common reason for an unclaimed scholarship is that its restrictions are quite narrow, making it so that few, if any, students can apply for it year to year (an example would be having a certain last name, or being of a certain ethnicity going into a small field of study). The majority of scholarships have many more applicants than can be awarded aid.

Use College Raptor to discover personalized college matches, cost estimates, acceptance odds, and potential financial aid for schools around the US—for FREE!

 

Lender Rates (APR) Eligibility
Citizens logo.
5.50%-16.12%* Variable
3.99%-15.61%* Fixed
Undergraduate and Graduate
VISIT CITIZENS
Sallie Mae logo.
5.54% - 15.70% Variable
3.99% - 15.49% Fixed
Undergraduate and Graduate
VISIT SALLIE MAE
Credibe company logo.
4.63% - 17.99% Variable
3.49% - 17.99% Fixed
Undergraduate and Graduate
VISIT CREDIBLE
Lendkey company logo.
6.00% - 13.75% Variable
3.99% - 13.75% Fixed
Undergraduate and Graduate
VISIT LENDKEY
Ascent company logo.
5.66% - 14.72% Variable
3.69% - 14.56% Fixed
Undergraduate and Graduate
VISIT ASCENT
3.70% - 8.75% Fixed
Undergraduate and Graduate
VISIT ISL
Earnest company logo.
5.62% - 16.85% Variable
3.69% - 16.49% Fixed
Undergraduate and Graduate
VISIT EARNEST
5.00% - 14.22% Variable
3.69% - 14.22% Fixed
Undergraduate and Graduate
VISIT ELFI
College Raptor is not a loan lender and does not assume responsibility for suggesting a loan to a user who may not be eligible for it. Rates, terms, conditions, eligibility, approval, and other considerations are the decisions of the lenders and may vary depending on which lender or marketplace the user selects. We urge users to carefully consider and review all loan options and terms before committing to taking out a loan.

Subscribe to Our Newsletter

Join thousands of students and parents learning about finding the right college, admissions secrets, scholarships, financial aid, and more.