How exactly do scholarships work??

I don't understand how scholarships work?

• This is what I think I know: 1. Colleges give out scholarships to elite people whom they want at their college. 2. Private organizations also award scholarships for stuff like creating the best twinkie box design and other such things. 3. Universities and private organizations don't give out need-based scholarships. 4. Scholarships are free?

• Answer:

  1. Colleges and universities give scholarships to people based on "MERIT" something they have accomplished like a high GPA or/and high SAT/SAT scores. Or other abilities like sports or other abilities like leadership, music, or such.. 2. Yes, other private organizations give out scholarships like your local bank, credit union, place of employment or parents place of employment. 3. Universities and private organizations do give out scholarships that are partly based on "need".. these often ask for a copy of your FAFSA application, SAR or ask what your EFC number is. 4. Scholarships do not have to be repaid. Correct.