The two most common types of scholarships are merit-based scholarships and need-based scholarships.
Merit-based scholarships are often awarded based on merit, which can take many forms, however is usually awarded to students who excel in certain qualities that the sponsoring organization seeks in the recipient. Merit-based scholarships are based on academic achievements or demonstrated talent in special categories such as arts, athletics and other interests.
Need-based scholarships are awarded to students that demonstrate financial need to fill a money gap that would hinder the student from attending college if they don’t secure the funds. What’s important to note is that there can be a hybrid of these two common types of scholarships, meaning that the student has to meet both the merit qualifications and demonstrate financial need.
Under these two main types of scholarships fall different variations, such as institutional scholarships. These scholarships provide funding directly from a college or university to the student. Athletic scholarships would be an example of an institutional scholarship.