It is a form of financial aid awarded to students to further education. Scholarships are awarded based upon various criteria, such as academic merit, skills, and financial need. Scholarship criteria usually reflect the values and goals of founder of the award. While scholarship recipients are not required to repay scholarships, the awards may require that the recipient continue to meet certain requirements during their period of support, such maintaining a minimum grade point average or engaging in a certain activity.

Scholarships may have a financial need component but rely on academic criteria as well.