With college costs outpacing inflation, even affluent families are rethinking how to pay less out of pocket during National Scholarship Month, which is this month.
The assumption that "we make too much to qualify for aid" is one of the costliest misconceptions in higher education.
In reality, billions of dollars in scholarships, grants and state workforce incentives are available — many with no income restrictions at all.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Kiplinger's Adviser Intel, formerly known as Building Wealth, is a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.
The families who benefit most aren't the ones who spend hours filling out random scholarship applications, but those who approach funding strategically, much like portfolio management.
Here are four overlooked avenues of "free money":
1. Merit aid as the new recruitment tool
Colleges are increasingly using merit scholarships to attract high-performing students, regardless of their financial need.
At many universities, 22% of all undergraduates receive merit-based aid. Some private institutions and regional universities offer non-need-based aid to half or more of their full-time students as a competitive strategy to attract specific applications.
These institutional awards serve as tuition discounts, some renewable for up to four years.
Families can gain an advantage by building a list of target schools where their student's academic profile (GPA, test scores, extracurriculars) lands in the top 25% of admitted applicants.
Many institutions publish "automatic merit" charts showing thresholds for guaranteed awards.
A strong GPA and solid test performance can translate into five-figure savings per year — making merit a powerful lever even for wealthy households.
2. Skill-based scholarships in high-demand fields
Not all scholarships are based solely on grades or financial need. Many reward skills and interests that align with the future workforce. For example:
Cybersecurity and IT. The CyberCorps Scholarship for Service pays full tuition and a living stipend in exchange for federal service after graduation.
Semiconductors and engineering. Schools like the University at Albany offer scholarships funded under the CHIPS+ Act to train engineers for the microelectronics industry.
Esports and digital media. Over 300 colleges now offer esports scholarships that can stack with academic awards.
These programs focus on ability, not income, and often lead directly to internships or guaranteed job placement.
3. State 'Workforce' and 'Promise' scholarships
Nearly every state now funds "last-dollar" scholarships that cover tuition gaps after other forms of aid have been applied. Many are tied to high-demand fields such as health care, teaching and public safety.
Some examples:
- New York state's Scholarships for Academic Excellence award scholarships of $500 and $1,500 per year to students achieving academic excellence while in high school.
- The Kansas Promise Act Scholarship covers tuition for designated programs like logistics, nursing or cybersecurity if recipients work in-state for two years after graduation.
- The Maryland Workforce Shortage Grant supports majors in education, therapy, social work and other public service areas.
- The New Mexico Opportunity Scholarship covers up to 100% of tuition and required fees at public colleges for eligible residents.
These programs are structured for accountability: In exchange for service or residency commitments, students can graduate debt-free or with minimal debt.
To learn more about available scholarships and grants within your state, visit Edvisors.com to access links to scholarships and grants per state.
4. Employer tuition benefits (for students and professionals)
Employer-funded education is one of the most underused forms of "free money." Some examples:
- The Starbucks College Achievement Plan covers 100% of tuition through Arizona State University's online degree programs.
- Walmart's Live Better U program pays tuition and for books at partner schools nationwide.
Some of these opportunities are also available to dependents or part-time employees.
For professionals pursuing graduate degrees, many companies offer $5,000 to $10,000 annually in tax-advantaged tuition assistance — a benefit that can be paired with scholarships and 529 funds.
Strategic families utilize these employer programs as an asset class — layered on top of merit and grants — to minimize cash flow strain.
Integrating scholarships into a total funding strategy
For high-net-worth households, the real advantage comes from coordination — aligning scholarships, 529 plans, grants and savings into a coherent strategy.
A few high-yield moves:
- File the FAFSA anyway. Many merit and state programs require it, even if you don't qualify for need-based aid.
- Time your 529 withdrawals. If your student secures substantial merit or state aid, you can preserve 529 funds for graduate school or later years.
- Leverage credible planning tools. Resources available on Edvisors.com, where I am the chief marketing officer, help families compare college costs, explore scholarship options and understand how aid packages interact with personal savings.
- Know each college's stacking policy. Some institutions cap total aid at tuition cost; others allow overage for housing or books. Always verify in writing.
This disciplined approach transforms scholarships from a side pursuit into a core component of financial planning.
Quick wins for National Scholarship Month
Audit your college list for automatic merit. Check published grids and note eligibility thresholds.
Target workforce-aligned programs. Identify three scholarships linked to your student's intended major.
Explore employer partnerships. A part-time or summer job with an education benefit can offset thousands in tuition.
File the FAFSA before year-end. It's the single-most-efficient eligibility trigger for all types of aid.
Document your student's "skills profile." Compile achievements — coding contests, leadership roles, athletics — that strengthen competitive awards.
Bonus tips: How to negotiate a merit bump
Time it right. Wait until your student receives multiple admission offers. Colleges often have flexibility during late winter when they're finalizing enrollment numbers.
Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel (formerly known as Building Wealth), our free, twice-weekly newsletter.
Be specific, not emotional. Send a short, professional email to admissions that says something like, "We're grateful for the $12,000 scholarship offer. [Competing university] has offered $15,000. Is there any room for adjustment?"
Most schools will re-evaluate awards if the student fits a high-priority profile.
Confirm renewal terms. Many scholarships require maintaining a minimum GPA or credit load. Always get renewal criteria in writing to avoid surprises later.
The bottom line
"Free money" isn't about luck — it's about alignment.
By blending scholarships, state programs, employer benefits and strategic timing, even affluent families can significantly reduce college costs without sacrificing investment goals or liquidity.
In the end, the smartest move isn't chasing the biggest award — it's treating college funding with the same precision you bring to every other part of your financial life.
Related Content
- How to Budget for College Expenses Beyond Tuition
- Going to College? How to Navigate the Financial Planning
- Why You Should Check Your College's Financial Health
- Best 529 Plans of 2025
- Sending a Child to College? 10 Money-Saving Tips and Tricks
-
I'm want to give my 3 grandkids $5K each for Christmas.You're comfortably retired and want to give your grandkids a big Christmas check, but their parents are worried they might spend it all. We ask the pros for help.
-
If You're Not Doing Roth Conversions, You Need to Read ThisRoth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs.
-
Could Traditional Retirement Expectations Be Killing Us?A retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg.
-
I'm a Financial Planner: If You're Not Doing Roth Conversions, You Need to Read This
Roth conversions and other Roth strategies can be complex, but don't dismiss these tax planning tools outright. They could really work for you and your heirs.
-
Could Traditional Retirement Expectations Be Killing Us? A Retirement Psychologist Makes the Case
A retirement psychologist makes the case: A fulfilling retirement begins with a blueprint for living, rather than simply the accumulation of a large nest egg.
-
I'm a Financial Adviser: This Is How You Can Adapt to Social Security UncertaintyRather than letting the unknowns make you anxious, focus on building a flexible income strategy that can adapt to possible future Social Security changes.
-
My Teen Crashed His Car and Now Our Insurance Has Tripled. What Now?Dealing with the costly aftermath of a teen car accident is stressful. Here are your options for navigating it.
-
My First $1 Million: Retired In-House Corporate Lawyer, 74, MidwestEver wonder how someone who's made a million dollars or more did it? Kiplinger's My First $1 Million series uncovers the answers.
-
I'm a Financial Planner for Millionaires: Here's How to Give Your Kids Cash Gifts Without Triggering IRS PaperworkMost people can gift large sums without paying tax or filing a return, especially by structuring gifts across two tax years or splitting gifts with a spouse.
-
'Boomer Candy' Investments Might Seem Sweet, But They Can Have a Sour AftertasteProducts such as index annuities, structured notes and buffered ETFs might seem appealing, but sometimes they can rob you of flexibility and trap your capital.
-
AI Stocks Lead Nasdaq's 398-Point Nosedive: Stock Market TodayThe major stock market indexes do not yet reflect the bullish tendencies of sector rotation and broadening participation.
