Scholarships are a great help for students who want to pursue further education but cannot do so for the lack of financial aid. They can be broadly qualified as a merit scholarship, need based, student based and career based scholarships.

A merit scholarship is awarded on the basis of athletic, academic, artistic, or other abilities such as extracurricular activities, community service record of the students. Mostly merit scholarships are awarded by schools, colleges, and private funding organizations on a recognized achievement on any of the above-mentioned fields or having a high score on any standardized national or international tests such as the SAT or ACT.

Some companies offer these type of scholarships as a part of community service. This way they do their part of welfare for the community in which they are established and in return, they can recognize and tap on the talent available in the community. Companies also offer merit based scholarships to their employees for their further studies. These scholarships are performance based in a particular field. Companies also offer this type of scholarships to the children of their employees with the purpose of recognizing and recruit future talent within the company family.

Colleges offer merit scholarships on various factors. These are either based on the athletic ability of the student or academic excellence in a particular field. Some colleges offer scholarship in courses, which are underrepresented for example a scholarship for minority women in engineering.

Other types of scholarships based on merit are the ones offered by a membership organization. These are offered to encourage the aim or propagate the field of the organization. Scholarships based on merit are also established on the name of person who has passed away. These types of scholarships are often specific to the field of the person to carry on his/her legacy. Various uniformed services such as the army, navy, air force and the marines also offer scholarships to the wards of the servicemen on basis of their academic results.

There are some points to keep in mind when applying such as the importance of having a good grade point average (GPA) (if applying for an academic grant). Generally, a GPA of 3.7 and above is considered good. Some intuitions may ask for a lower GPA if you are an athlete. You should also try highlighting as many achievements as possible in your application. Applicants should also try to get as many recommendation letters as possible from former teachers, company heads, sport coaches and authorities.

A merit scholarship is not only a recognition of talent but also helps and reduces the financial burden. Some companies offer scholarships that require an applicant to work with them for a specific period of time. This means a free education plus a guaranteed job. Unlike loans, scholarships do not need to be paid off and can go a long way in ensuring a bright future.