Without a doubt, scholarships are the best way to pay for college. They’re gifts of free money that don’t have to be paid back! What’s better than that? All students should go after as many scholarship awards as they possibly can. It will reduce your potential for student loan debt and the overall cost of college. When it comes to scholarships, there are two main types: merit and need-based financial aid.
So which is better?
What Are Merit-Based Scholarships?
Merit-based scholarships are awarded to applicants based on their accomplishments, demographics, hobbies, and more. The exact accomplishments vary depending on the requirements of that particular scholarship. When choosing the winner of a merit-based award, financial needs are not taken into consideration.
You can win merit-based scholarships for impressive SAT scores, your high school soccer involvement, volunteer work, excellent essay writing, being part of a certain religion, wanting to study a specific major, and plenty more.
What Are Need-Based Financial Aid Scholarships?
Need-based scholarships are awarded to applicants who have financial need. Academic or extracurricular accomplishments are not taken into consideration when awarding need-based scholarships.
To be considered for need-based scholarships, you will be required to submit documentation stating your family’s financial status.
Which Type of Scholarship is Better?
Neither one is better than the other. Both scholarships offer the same benefits. You can apply for any number of scholarships and keep all the scholarship money you are awarded. You don’t have to return any of the scholarship money at any time, neither do you have to pay interest on it. The only requirement to win either a merit-based or need-based scholarship is that you must meet the eligibility criteria. And yes, you can earn both types of scholarships to pay for your education.
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| Lender | Rates (APR) | Eligibility | |
|---|---|---|---|
 |
5.50%-16.12%* Variable
3.99%-15.61%* Fixed
|
Undergraduate and Graduate
|
VISIT CITIZENS |
 |
5.54% - 15.70% Variable
3.99% - 15.49% Fixed
|
Undergraduate and Graduate
|
VISIT SALLIE MAE |
 |
4.63% - 17.99% Variable
3.49% - 17.99% Fixed
|
Undergraduate and Graduate
|
VISIT CREDIBLE |
 |
6.00% - 13.75% Variable
3.99% - 13.75% Fixed
|
Undergraduate and Graduate
|
VISIT LENDKEY |
 |
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 |
 |
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 |
