Scholarships are often referred to as "free money" or "gift aid". Unlike loans, scholarships do not have to be repaid to the scholarship provider. Scholarships may be given to students who have demonstrated or shown potential for excellence in a certain area or discipline, such as academics, sports or music. Thousands of private scholarships are available through various companies, organizations and clubs. Financial need is not always part of the criteria for receiving scholarships. Some scholarships are awarded directly to the student in the form of a check, while other scholarships are written out to the student's college or university.

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