Paying for college starts with one important goal: use as much free money as possible before borrowing a single dollar. This comes in the form of scholarships and grants, which can significantly reduce what you’ll owe later – and in some cases, cover a large portion of your costs.

Grants are usually awarded through your college when you file the FAFSA and are typically based on financial need. There are many sources of scholarship money, and amounts can range from a few hundred dollars to the majority of your tuition. Some scholarships may be automatically offered to you, but others you will need to apply for. Here’s what you need to know about finding scholarships to pay for college.

Types of Scholarships

First, you need to understand the types of scholarships available:

• Merit-based scholarships are awarded based on your academic, athletic, artistic, or other achievements.
• Need-based scholarships are given out based on your family’s income and need for financial assistance.
• Identity- or affiliation-based scholarships are offered to students connected to certain groups – this could include your credit union, a parent’s employer, military families, or cultural and religious organizations.

The key takeaway: there’s something out there for almost everyone – you just have to know where to look.

Tip: Many scholarship applications require a short essay. Draft one version that can be adjusted slightly for each application so you don’t have to start from scratch each time!

Where to Find Scholarships

Where can you find scholarships? Pretty much anywhere! You just have to do some legwork to find the ones available to you. The best time to search and start applying is during your junior year of high school, but there are still opportunities if you’ve waited until the last minute.

• Your high school guidance office. Counselors regularly post or share scholarship opportunities for students. You should also ask your counselor directly about scholarships that may be available, or where to look in your community. High schools may also offer their own scholarships, funded by alumni or other supporters.
• Community organizations. Local clubs, employers, religious organizations, and credit unions frequently offer scholarships – many with smaller applicant pools, which improves your chances.
• The college you’ll attend. Typically these are included in your financial aid package for the school, but you may find separate scholarships available through academic programs. Contact the department for your major to see if there might be any additional opportunities.
• Online databases and search tools. These can help you cast a wider net, especially for national opportunities – just be careful to use reputable sources like those below.
  • U.S. Department of Labor Scholarship Search Tool
  • Fastweb
  • Scholarships.com

Beware of Scams

Unfortunately there are scammers who try to take advantage of students looking for money for college. Most importantly, you should never have to pay someone to apply for or receive help searching for financial aid. The FTC offers more tips for avoiding scams and identity theft.

How to Use Scholarship Money

Some scholarship money may be sent directly to your financial aid office to be applied to your tuition, room and board. Other scholarships (especially small community-based scholarships) may be sent directly to you via check. You will need to contact your financial aid office to have those funds applied to your tuition bill, or if the rules of the scholarship allow, you may be able to use the money yourself to pay for things like books or other necessary items.

Once you’ve exhausted grant and scholarship money, you should utilize federal student loans, and finally, use private student loans to fill remaining funding gaps.