Most students are always in search of funding opportunities for their education. That’s why young people are well aware about different types of scholarship available today. However, they sometimes neglect learning more about sweepstakes scholarship. What is it and how does it work? Let’s dig deeper into this type of funding and talk about it below in more detail.
Key Features of Sweepstakes Scholarships
So what makes sweepstakes scholarship so different? First of all, this type of financial aid is awarded through a random drawing. Can you imagine that there is no traditional merit-based or need-based criteria? Basically, everyone has an opportunity to win money for college through luck or chance. Students don’t really need to apply any essay, GPA, or specific project completion. It’s hard to believe that you are eligible for a scholarship just for being a student but it’s true. Another appealing aspect of this scholarship is that the application process is very straightforward. In short, you just need to fill out an online form with basic personal information to participate in a sweepstakes contest. Naturally, this simplicity encourages a broad range of applicants. Plus, you shouldn’t worry about transparency because sweepstakes scholarships are subject to federal and state sweepstakes laws. That means that the selection process is conducted fairly with no cheating.
In general, sweepstakes scholarships offer a unique and accessible means for students to potentially secure financial aid with minimal effort. As a person who wants to save money and get a great education, this can be a solution. However, while entering these scholarships requires little time, academic responsibilities can still be too much for you. In this situation, it’s logical to streamline your academic workload. So, don’t neglect using a custom essay writing service as it can be very advantageous. These services can back you up with online help which is designed to save time and reduce stress. Hence, you will be able to shift your full focus to other important aspects of your education.
What You Need to Know About Sweepstakes Scholarships
Now, it might seem to you that getting a sweepstakes scholarship is pretty effortless and straightforward. And it’s true at some point. But you should know that there are several hidden pitfalls to consider. Let’s talk about them so that you become better at planning your educational financing.
Low Probability of Winning
Naturally, we all want things to come easy to us. That’s why the allure of getting funding is so powerful for many students. So just imagine the number of young people applying for this type of scholarship! The statistics show that there are thousands, sometimes hundreds of thousands, of entries. Hence, the competition is pretty high and the probability of winning is quite low. If you are aware of this fact, you won’t be that disappointed in case of failure. So prepare yourself by getting enough information about your prospects.
Potential for Scams
This one is not likely to happen, but the reality is that the sweepstakes scholarship arena can be ripe for scams. It’s unfortunate but true because some fraudulent organizations might pose as legitimate scholarship providers to collect personal information from unsuspecting students. There are many reasons why they do but why care about them? It’s better just to be careful when making decisions about your applications. If you stick to common safety rules, don’t be afraid of identity theft and a loss of privacy. Your data won’t be shared with third parties for marketing purposes unless you expose yourself to threats.
Dependency and Unreliability
Unfortunately, not all of us are mature enough to make a great use of getting a scholarship. What does it mean? Obviously, winning a sweepstakes scholarship is based purely on chance, so it can be an unreliable source of funding. Psychologists say that those who entirely pin their hopes on winning these scholarships may find themselves in a dependent position. This is quite dangerous and means that one is not able to plan finances effectively and be fully mature. Besides, this also potentially causes significant stress as enrollment dates approach.
Tax Implications
Generally, most scholarships are tax-free. But it’s not always the case, which can be a bit problematic. So before you apply for your dream scholarship, do your homework to learn if this particular option includes taxation. Education experts say that the tax status of a sweepstakes scholarship can vary depending on the amount and how the funds are used. Talking about the rules, if the scholarship is used for tuition and books, it is not taxable, so breathe out. But the bad news is that if a scholarship is used for other key expenses like room and board, it might be taxable, which is often an unpleasant surprise for students on a tight budget.
Final Thoughts
From all the information above, you must see what a tempting option a sweepstakes scholarship is. It has the conditions you can just dream about. You can apply in no time and get great rewards for your education. But let’s not make it too sweet. There are some pitfalls too! The thing is that if you have enough information and you are okay with certain limitations, you won’t be frustrated in the end. Just give it a try and have some faith in this supplemented source of funding.
Author’s BIO
Brandon Kryeger is a content writer and former tutor for high school students. Now he also shares the methods to earn money online without investment for students through his articles. Brandon believes that there are many ways to make money and getting a scholarship for one’s education can be one of them.