Finding Free Money for College

As the biggest-ever high school graduating class gets ready to head for college in the midst of an economic slump, the scramble for tuition -- not to mention room and board, books, and airfare home -- is on.

Private scholarships account for 7 percent of all grants awarded, and they average just under $2,000. The typical student applies for five to six awards, and the odds of winning one are about one in 10. You don't have to be an all-star athlete, a musical prodigy or even an A student to collect, either.

For instance, the Vegetarian Resource Group offers two $5,000 scholarships per year to students who promote a vegetarian lifestyle. Budding free-market capitalists can vie for one of 521 awards from the Ayn Rand Institute, ranging from $30 to $10,000, by writing an essay on one of Rand's novels.

Start your search in the high school guidance office. The financial-aid officer at the school you're applying to can help as well. FastWeb.com lists more than 1.5 million scholarships worth more than $3.4 billion and matches scholarships to your profile. You'll get the most bang for your buck by staying local. You may have to look no further than an employer (the student's or a parent's) or a community group, club or lodge. The narrower the field, the less the competition.

Schools may reduce aid if scholarships and aid combined equal more than a student's calculated need. But that might mean a reduction in loans. Don't pay a nickel for services that purport to match you with awards you can find on your own. And never pay an application fee. Scholarships, by definition, are free.