A scholarship is a type of financial support given to students based on specific criteria, most commonly academic performance. However, scholarships can also be awarded based on financial need, location, gender, or the class a student is studying in. Unlike loans, scholarships do not need to be repaid. Scholarships help students cover educational expenses, including tuition and other costs. Some scholarships are given as a one-time payment, while others are renewable, providing financial support each year.

The money may be sent directly to the student in the form of a check, or it may go to the school, where it is used to cover tuition, fees, housing, and other expenses. If there are remaining costs, the student will need to pay the difference.