Top Need-Based Scholarships for Low-Income Students in 2025

Why Need-Based Scholarships Matter

Here, we’ll discuss the best need-based scholarships for low-income students. Then, we’ll also discuss how these scholarships work and how to apply. You’ll agree that these are among the best ways to finance your college education.

What are need-based scholarships in the first place? These scholarships are financial aid awarded to students with:

• Demonstrated financial need (i.e., cost of attendance less Student Aid Index); or
• Unmet financial need (i.e., demonstrated financial need less financial need offered)

In contrast, merit-based scholarships are awarded based on achievements. These include academic excellence, artistic talents, athletic skills, or leadership and service. Many merit-based scholarship programs, nonetheless, also consider financial need in their selection.

Why do need-based scholarships for low-income students matter? First, the rising cost of college education makes them vital for low-income students. Without these scholarships, it’s nearly impossible for them to earn their college degrees.

In-state students in public colleges pay $11,011/year in tuition and fees, on average (2024-2025). Out-of-state students pay higher at $24,513/year. Students in private colleges pay even higher tuition and fees at $43,505/year.

These are only the direct costs. You must also consider indirect costs – room and board, books and supplies, and living expenses. Many colleges also have health insurance and student loan fees. By the time you graduate, you’ve likely spent $500,000 on your college education.

Fortunately, need-based scholarships will reduce your out-of-pocket costs. If you can get full-tuition or full-ride scholarships, you’re in a good place. You may also stack as many need-based scholarships as possible. Either way, you’ll spend less of your money.

Second, a high cost of attendance means a high risk of getting student loans. You don’t want to fall into the student debt trap, either. Today, the total average loan balance is $41,520/student. You’ll likely spend 7-10 years repaying your student loans, but it can be as long as 20 years.

Again, need-based scholarships can reduce your risk of getting student loans. The trick is to maximize your scholarships. Stacking scholarships and using them as intended – to pay your college costs – are key to success. 

How Need-Based Scholarships Work

If you wish to qualify for need-based financial aid for college students, here’s what you need to know. First, know the documents in determining financial need.

Free Application for Federal Student Aid (FAFSA)

The U.S. Department of Education and universities use FAFSA as a primary tool in financial aid. These institutions determine your Student Aid Index (SAI) from your FAFSA. The SAI is used in determining your financial aid eligibility and amount.

The lower your SAI, the higher your eligibility for financial aid and the higher its amount. With a higher SAI, you’re less eligible for financial aid.

But you can still qualify for federal loans and work-study. These are limited to direct unsubsidized loans and Parent PLUS loans only. You may not, however, qualify for Pell Grants, FSEOG, and subsidized loans.

College Scholarship Service (CSS) Profile

Some private colleges also use the CSS Profile in their financial aid process. Note that the CSS Profile requires more detailed financial information than the FAFSA. But both documents must have accurate, complete, and up-to-date information.

You may also submit supporting documents to verify your financial information. Tax returns, bank statements, and proof of untaxed income are common.

Second, you must know the criteria used in determining eligibility and award amounts.

Income levels

Check for the specific income thresholds of the programs you’re interested in. Consider Dartmouth College and Berea College for the need-based, free-tuition scholarships.

Household factors

Your financial need isn’t a “me, myself, and I” thing. Instead, it’s influenced by your household factors, including:

• Household income
• Household size (e.g., dependents)
• Parental marital status (e.g., married, divorced, or single)
• Number of siblings in college (i.e., two or more siblings in college can decrease SAI)
• Assets and savings of student and their parents

When you’re completing your FAFSA and CSS Profile, honesty and transparency are best. Even a simple mistake can affect your eligibility and award amount.

Fraud is punishable, too, with loss of eligibility, repayment, and legal penalties. In extreme cases, it’s punishable with imprisonment.

The next step is knowing how to apply for scholarships and win them. We’ll discuss these strategies in another section.

On another note, here are the basic differences between need-based and merit-based scholarships.

Need-based scholarships:

• Are awarded based on demonstrated financial need or unmet financial need
• Require specific financial documents, particularly the FAFSA and CSS Profile
• Don’t consider merit or achievements

Merit-based scholarships:

• Are awarded based on achievements
• Usually require high GPA, SAT/ACT scores, and extracurricular involvement
• Don’t consider financial background and need

You can apply for both types of scholarships. If you’re a low-income student, every award goes a long way toward funding your studies.

Top Need-Based Scholarships for Low-Income Students in 2025

Pell Grant

The Pell Grant is the flagship federal need-based program for undergraduates. More than $1 trillion has been disbursed since it was established in 1972.

The maximum amount of college scholarships for low-income families differs every year. For the 2024-2025 academic year, it’s $7,395/student. Your actual award amount depends on your:

• Demonstrated financial need
• Full-time or part-time enrollment status
• Whether you’ll attend college for a full academic year or less 

The deadline for submission is June 30, 2025. Submit ASAP.

The Gates Scholarship

This is among the best scholarships for students with financial need because it:

• Focuses on low-income but high-achieving students who identify as part of the minorities. These include African Americans, American Indian/Alaska Natives, and Hispanic Americans. Applicants must have at least a 3.3 GPA, among other eligibility requirements.
• Covers the remaining cost after other financial aid has been applied. Renewable for up to five years.
• Provides student support services, such as mentorship, networking opportunities, and career guidance.

Only 300 students are selected every year in the highly competitive program.

Jack Kent Cooke Foundation Scholarship

This is also among the best 2025 scholarships for low-income students because it:

• Provides up to $55,000/year to cover direct and indirect costs
• Offers student support services, including academic advising, mentorship, and career advising
• Supports scholars until their master’s degree completion

Applicants must be high school seniors with at least a 3.5 GPA and demonstrated financial aid.

Horatio Alger Scholarship

The Horatio Alger Scholarship program offers grants and scholarships for college students who:

• Have overcome adversity in their personal lives and demonstrate resilience
• Are high school seniors with financial need (i.e., family income threshold under $65,000)
• Have at least 2.0 GPA

Scholars receive up to $25,000 in scholarships. The deadline is March 15, 2025.

Dell Scholars Program

If you’re a first-generation, low-income student, consider the Dell Scholars Program. Scholars enjoy these benefits:

• Up to $20,000 in financial aid for direct and indirect costs
• Free laptop and annual textbook stipend
• Student support services, such as mentoring, academic support, and career guidance

Applicants must be high school seniors with at least a 2.4 GPA. The deadline usually falls in December every year.

QuestBridge National College Match

For full-ride need-based scholarships, consider the QuestBridge National College Match. You’ll enjoy these benefits:

• Access to college education in prestigious colleges, including the Ivy League
• Receive a guaranteed full-ride scholarship education

Applicants must be high school seniors who demonstrate exceptional academic performance. You must also demonstrate financial need (i.e., under $65,000/year household income). Preferred personal qualities include integrity, resilience, and intellectual curiosity.

Coca-Cola Scholars Program

Note that the  Coca-Cola Scholars Program considers both merit and financial need. Applicants must demonstrate academic excellence, leadership, and service, too.

This is also a competitive program, with only 150 students chosen every year. Selected students receive $20,000 as a one-time award during their freshman year.

There’s no renewable option. Selected students, however, enjoy lifelong access to its extensive alumni network. Applicants must be high school seniors with at least a 3.0 GPA.

College Board Opportunity Scholarships

Consider the College Board Opportunity Scholarships because of these benefits:

• Be rewarded for your college preparatory actions, such as practicing for the SAT. 
• Excellent accessibility because it’s open to all students regardless of their academic performance
• Provide up to $40,000 as a grand prize scholarship. Smaller scholarships from $500 to $2,000 are available.

Low-income students are given priority. Monthly deadlines are set throughout the year.

California Grant Program

The Cal Grant program considers merit and needs in its selection process. Applicants must be California residents, demonstrate financial need, and with at least a 2.0 GPA. The deadline is March 2 every year.

Selected students receive financial aid depending on the type of Cal Grant  (A, B, or C). But it’s possible to get full tuition coverage at UC or CSU schools. Students may also receive a living allowance (Cal Grant B).

Check out your state for its grant program, too. Oregon, Minnesota, and New York are notable examples.

New York University – AnBryce Scholarship

This is for first-gen students admitted to NYU as freshmen students. Applicants must have significant financial need to qualify. Selected students receive a full-tuition scholarship and leadership development opportunities.

How to Apply for Need-Based Scholarships Successfully

Remember our scholarship application tips to increase your chances of winning free money. Need-based scholarships are free money because you don’t have to repay them.

Complete your FAFSA and CSS Profile.

The first crucial step is completing your FAFSA and, if necessary, CSS Profile. Again, honesty, completeness, and accuracy are a must.

• Check the deadline for submissions for both documents.
• Create your FSA ID at studentaid.gov first.
• Refer to your Social Security number and financial documents for the required information.
• Simplify entering your tax information by using the IRS  Data Retrieval Tool (DRT).
• Fill in every field on the FAFSA and CSS Profile.
• Be careful when entering information, such as the dependency questions and assets.
• Review your FAFSA, CSS Profile, and supporting documents before submission.
• Check for fee waivers on the CSS Profile.
• Submit your documents on or before the deadline.
• Keep copies of your documents.

Gather the required supporting financial documents.

These will vary depending on your unique financial circumstances and other factors. Prepare these common supporting documents, nonetheless.

• Tax returns, which can be yours and/or your parents, usually from the prior year
• Proof of income, including W-2 forms
• Bank statements and investment records
• Proof of untaxed income, such as disability benefits and child support

Gather these documents ASAP. You want to have them ready for faster completion of your FAFSA and CSS Profile.

Write a well-crafted personal statement or scholarship essay.

You have to submit a compelling personal statement or essay to plead your case, so to speak.

• Be honest about the financial hardships you’re experiencing. Be specific, too, about how the scholarship will help improve your circumstances.
• Share your personal story while highlighting your persistence and resilience against challenges.
• Highlight your academic and career goals. Explain how the scholarship aligns with your goals.
• Edit and proofread. Seek feedback from your peers, family members, and teachers.

Get strong recommendation letters.

People who will vouch for your financial need, among others, can boost your chances, too.

• Ask your recommenders at least 4 weeks before the deadline.
• Select recommenders who know enough about you, especially your character, financial need, and potential.
• Provide your recommenders with details about yourself and the scholarship program.
• Follow up a week before the deadline.
• Express your gratitude.

Planning is crucial to your success in the scholarship application process.

Conclusion: Take Advantage of Scholarship Opportunities

File your FAFSA and, if necessary, your CSS Profile. Think of them as your foremost need-based financial aid documents.

But don’t settle for these, either. Look beyond and explore need-based scholarships by nonprofits, community organizations, and corporations. The more scholarships in your name, the lesser your financial stress will be. You may even graduate with little student debt.

Need-based scholarships are competitive, too. You must then plan, stay organized, and submit on time.