Scholarships and Fellowships: Understanding Your Funding Options

Scholarships and fellowships are awards that help pay for study or research without having to be repaid like a loan. Beyond that shared basic idea, the words are used loosely. One organization’s “scholarship” can look much like another’s “fellowship,” and some awards labeled as either come with work or service obligations.

So the most useful habit is to look past the name and read the terms. This guide explains what to look for, how eligibility usually works, how to find awards safely and how to prepare applications that make the most of your time.

Why the terms matter more than the label

As a rough pattern, “scholarship” is often used for awards that support undergraduate or professional study, frequently based on merit, need or background. “Fellowship” is often used for awards that support graduate study or research, sometimes with a stipend for living costs. But these are tendencies, not rules. Universities, foundations and governments define their own awards.

That’s why two awards with the same label can differ completely. Before you compare awards, find out the same five things about each:

1. Who can apply. Citizenship or residency, field of study, academic stage, location and other criteria.
2. What it pays for. Tuition, fees, living costs, travel, research expenses or a mix.
3. What you owe in return. Teaching, research, service after you finish, reporting or minimum grades.
4. How long it lasts, and the conditions for renewal.
5. How it interacts with other funding, including financial aid and other awards.

The scholarship and fellowship comparison worksheet sets these points out side by side.

Scholarships, fellowships and assistantships

Assistantships often come up in the same conversation, especially for graduate students. Here is how they commonly differ. Treat this as a starting point, not a definition, and check each award’s actual terms.

Common differences between scholarships, fellowships and assistantships

Common differences between scholarships, fellowships and assistantships

Award type	Often funds	What is often expected in return	Watch for
Scholarship	Tuition and study costs, often for undergraduates	Usually no work; may require minimum grades or continued enrollment	Whether it reduces other aid; renewal conditions
Fellowship	Graduate study or research, sometimes with a living stipend	Progress in study or research; sometimes reports or service	What is and isn't covered; length of support
Assistantship	A stipend and often tuition support in exchange for work	Teaching or research duties for the institution	Hours, duties, and which fees are covered

For a closer look, see scholarship vs fellowship vs assistantship and our guide to teaching assistantships.

Who funds awards

• Colleges and universities, through admissions, departments and graduate schools.
• Federal and state governments, including research agencies and state higher education agencies.
• Foundations and nonprofits, including professional societies in many fields.
• Employers and community organizations, including local businesses and civic groups.

A verified example

The U.S. National Science Foundation’s Graduate Research Fellowship Program (GRFP) shows how much detail sits behind a single award. According to NSF on October 7, 2026, it provides a $37,000 stipend and a $16,000 cost-of-education allowance paid to the institution for each year of support, with three years of support over a five-year award. NSF’s eligibility page says applicants must be US citizens, nationals or permanent residents, and must be either in the final year of a bachelor’s degree, a bachelor’s graduate not yet enrolled in graduate school, or a first-year graduate student with less than one academic year completed. Those rules were updated in August 2026, which is a good reminder to check the official page every cycle. Next Step Forward is not affiliated with NSF; for official GRFP information, go to nsf.gov.

Reading eligibility carefully

Eligibility rules commonly cover:

• Citizenship or residency. Many government-funded awards are limited to citizens or permanent residents of the funding country.
• Field of study. Some awards fund only particular disciplines.
• Academic stage. Entering, continuing or final-year students, or early graduate study only.
• Location. Where you study, where you’re from, or where the award takes you.

Keep location and eligibility apart. An award to study in another country isn’t automatically open to applicants from yours. The UK’s Chevening Fellowships, for example, are an international program with nationality-based eligibility. Our Chevening Fellowships guide explains who can apply and labels it clearly as international.

Finding awards without paying for lists

Good places to look include your college’s financial aid office, your department or graduate school, professional societies in your field, community foundations and the official websites of government programs.

Be alert to scams. The Federal Trade Commission warns about phrases such as “The scholarship is guaranteed or your money back,” “We’ll do all the work. You just pay a processing fee,” and “I just need your credit card or bank account number to hold this scholarship.” Its advice is that legitimate scholarships don’t require you to pay to apply. Talk to your college’s financial aid office before you share payment details with anyone offering scholarship help.

Building a strong application

Most applications draw on the same core materials, so preparing them well pays off across several awards.

• A personal or research statement, tailored to what each funder says it wants to support.
• A résumé or CV showing relevant study, work, research and service.
• Recommendation letters. Ask early, and give recommenders the award description, your draft statement and the deadline.
• Transcripts and other documents, which can take time to request.

Keep a single tracker for deadlines, documents and recommenders. The funding application tracker is built for this, and our research funding application checklist walks through each step.

An invented teaching example: a student finds two awards with similar deadlines. One asks for a 500-word statement on community impact; the other wants a 2-page research proposal. Rather than writing two documents from scratch, they draft a core paragraph about their research question and its relevance, then build each application around what that funder emphasizes. Reusing a core works. Sending the same document to both usually doesn’t.

Holding more than one award

Whether you can combine awards depends on the terms of each one. Some funders don’t allow other major awards in the same period; others encourage combining. Outside scholarships can also affect the financial aid your college offers. Read every award’s terms, and tell your financial aid office about outside awards so you know how your package will change.

Tax basics

In the United States, IRS Publication 970 explains that a scholarship or fellowship grant can be tax-free if you’re a degree candidate and the money pays for qualified education expenses: tuition and required enrollment fees, plus course-related fees, books, supplies and equipment. Amounts used for room and board, travel and similar costs are generally taxable, as is any part that pays for teaching, research or other required services. How these rules apply depends on your circumstances. This is general information, not tax advice, so check with a qualified tax professional or your institution.

Planning a funding calendar

Award deadlines are spread across the year and often fall well before the period of study they fund. Work backwards from each deadline: when you need recommenders’ confirmation, when your statement draft should be ready and when transcripts must be requested. Keep everything in one place, and set reminders a few weeks ahead of each date.

If your goal is research experience as an undergraduate, our guide to undergraduate research opportunities covers paid programs that sit alongside scholarships.

Common questions

Is fellowship income taxable?

It can be. US tax treatment depends on what the money pays for and whether it’s payment for services. See the tax section above and IRS Publication 970, and consult a professional for your situation.

How do I know a scholarship is legitimate?

Check the funder’s own website, confirm contact details independently and be wary of guarantees or fees. When in doubt, ask your financial aid office.

Are awards available to international students?

Some are, but many government-funded awards are limited to citizens or residents of the funding country. On this site, international programs are labeled with their location and eligibility.

A practical next step

List three awards you might be eligible for. For each, write down the five terms from the start of this guide: eligibility, what it covers, obligations, length and how it interacts with other funding. Cross off any you’re not eligible for, and put the remaining deadlines into your tracker.