What are need-based scholarships and how do I qualify?

I'm a junior in high school and I'm starting to research different ways to fund my college education. I've heard a lot about need-based scholarships, but I'm not entirely sure what they entail. How do need-based scholarships differ from other types of financial aid? Also, what criteria do colleges and organizations use to determine eligibility for these scholarships, and how can I improve my chances of qualifying? Are there specific applications or processes I should be aware of?

Need-based scholarships are a type of financial aid that students can receive due to financial need. Financial need is determined by a student's Student Aid Index (SAI), which is calculated based on information the student and their family provide on the Free Application for Federal Student Aid (FAFSA) or CSS Profile. As of 2024, the FAFSA uses the Student Aid Index (SAI) instead of EFC to calculate need, but the principle remains the same as before: This information is used to calculate how much your family is expected to contribute towards your education, and any unmet costs are your financial need.

Contrastingly, merit-based scholarships do not take financial need into consideration, but rather rewarding students for their academic, athletic, leadership, or artistic accomplishments.

For need-based scholarships, eligibility is primarily based on your family’s income, assets, size, and number of children attending college. However, some organizations might also consider other factors, like your academic achievements, involvement in community service, or membership in certain groups. To give yourself the best chance of qualifying, ensure that you complete the FAFSA or CSS Profile accurately and on time. The FAFSA opens on October 1st each year, and the earlier you file, the better.

It's also crucial to check with each specific college or organization's own financial aid policies and processes. Some colleges require additional forms, like the CSS Profile, to apply for their own institutional need-based aid.

Finally, apart from need-based scholarships from colleges and governmental bodies, a number of external organizations and nonprofits also offer need-based scholarships. For instance, the Jack Kent Cooke Foundation provides the Cooke College Scholarship Program, for high-achieving high school seniors with financial need. Thus, exploring opportunities outside of colleges can be beneficial in securing more funds. Remember, always meet the deadlines and provide complete and accurate information to improve your chances.