How to pay for college · By CalChannel Editorial Team · Updated September 29, 2026
Scholarship definition: a scholarship is money awarded to a student to help pay for education that doesn’t have to be repaid. Scholarships are usually based on academic merit, talent, background, intended major, service or financial need, and they come from colleges, companies, foundations and community groups. The word is spelled s-c-h-o-l-a-r-s-h-i-p, 11 letters. In academic writing, “scholarship” can also mean serious research and learning in a field.
What is a scholarship? In paying for college, it’s gift aid: money you don’t pay back, as long as you meet any conditions attached to it.
This guide explains the scholarship definition, the main types, how scholarships differ from grants and loans, and what to watch for.
| Type | Based on | Example |
|---|---|---|
| Merit | Grades, test scores, leadership | A college’s academic scholarship for top admitted students |
| Need-based | Financial need, often measured by the FAFSA or CSS Profile | Private college grants and scholarships |
| Talent or athletic | Skills in sports, arts or music | NCAA athletic scholarships, arts awards |
| Identity or background | Heritage, first-generation status, location | Community foundation scholarships |
| Field of study | Intended major or career | Awards from professional associations |
| State programs named “scholarship” | Income and enrollment rules | California’s Middle Class Scholarship, awarded through the FAFSA or CADAA |
Sources: Federal Student Aid; California Student Aid Commission. Full list at the end of the article.
In This Article
What Is a Scholarship?
A scholarship is financial aid for education that you don’t repay. It can be a one-time award or renewable each year if you meet conditions such as a minimum GPA or full-time enrollment. Scholarships can come from your college (institutional scholarships) or from outside organizations (private or external scholarships). Most are paid to your school and applied to your bill, though some are paid to you.
How Scholarships Differ From Grants, Loans and Work-Study
- Loans must be repaid with interest. Scholarships don’t. See student loans vs. scholarships.
- Grants are also free money but are usually based on financial need, such as the Pell Grant.
- Work-study is money you earn through a part-time job. See Federal Work-Study.
Our take: Don’t assume scholarships are only for straight-A students. Many local awards look for community service, a specific major or a particular background, and they often get far fewer applicants than big national contests.
“Scholarship” in an Academic Sense
Outside of financial aid, “scholarship” also means academic study and research, as in “a professor’s scholarship on California history.” Context makes the meaning clear. The word is a noun, spelled the same in American and British English, and the plural is “scholarships.”
What to Know Before You Accept a Scholarship
- Renewal rules: check GPA, unit and major requirements for renewable awards
- Effect on other aid: total aid generally can’t exceed your cost of attendance, so report outside scholarships to your aid office; loans are often reduced first
- Taxes: scholarships used for tuition, required fees, books and required supplies generally aren’t taxable, but amounts used for housing and food may be, according to IRS Publication 970
- Scams: the FTC warns never to pay to apply for a scholarship
Frequently Asked Questions
What is the simple definition of a scholarship?
Money awarded to a student to help pay for education that doesn’t have to be repaid.
How do you spell scholarship?
S-c-h-o-l-a-r-s-h-i-p, one word with 11 letters. The plural is “scholarships.”
What’s the difference between a scholarship and a grant?
Both are free money. Grants are usually based on financial need, while scholarships are often based on merit, talent or other criteria.
Do you have to pay scholarships back?
No, but you may lose a renewable scholarship if you don’t meet its conditions, and some awards are canceled if you don’t enroll.
Are scholarships taxable?
The part used for tuition, required fees, books and required supplies generally isn’t. The part used for housing and food may be taxable.
The Bottom Line on the Scholarship Definition
In short, the scholarship definition is simple: a scholarship is gift aid for education that you don’t repay, awarded for merit, talent, background, field of study or need. Read the conditions, report outside awards to your aid office and never pay to apply. For finding and winning awards, see our scholarship guide and tips on writing a scholarship essay.
Sources
- Federal Student Aid. “Finding and Applying for Scholarships.” studentaid.gov.
- California Student Aid Commission. “Middle Class Scholarship.” csac.ca.gov.
- Internal Revenue Service. “Publication 970: Tax Benefits for Education.” irs.gov.
- Federal Trade Commission. “How To Avoid Scholarship and Financial Aid Scams.” ftc.gov.
CalChannel Editorial Team California college guides
The CalChannel editorial team researches and writes guides to California colleges, admissions and financial aid. We build our college profiles and aid guides from colleges’ own published data, federal IPEDS data and the California Student Aid Commission. Read our editorial policy.
