Scholarships meant to help cover tuition can be applied in multiple ways. One factor, the order in which the scholarship is applied, can actually affect what the scholarship can pay.
This is the concept of how first-dollar scholarships versus last-dollar scholarships generally work.
When Does the Money Get Applied?
The words first-dollar and last-dollar describe when scholarship money is applied in when accounting for other grants, scholarships, or additional gift-aid you have.
PAYS FIRST
First-Dollar Scholarship
This money is given, regardless of any other aid you may already have.
First-Dollar Scholarship → Other aid → Remaining cost
Impact: This means you can have other forms of funding that cover your tuition expenses and still receive this first-dollar scholarship money. That other aid may remain available to cover eligible education expenses.
FILLS THE GAP
Last-Dollar Scholarship
This money is meant to help you after other available aid.
Other aid → Last-Dollar Scholarship → Remaining cost
Impact: If other aid already covers all eligible tuition and fees, the last-dollar scholarship may pay less (since there is less to cover) or even possibly $0.
Example
EXAMPLE
Same Costs. Different Order.
Imagine a student has the following costs and financial aid:
TUITION + FEES
$8000
OTHER GRANTS
$5000
SCHOLARSHIP LIMIT
$4000
First-Dollar Example
$4000 first-dollar scholarship applied first
+
$4000 of the student’s other grants applied after the scholarship
$8,000 covered
When the $4000 first dollar-scholarship was applied, $1000 of the other grant aid was not needed for tuition and fees. Whether that $1000 it can help with other expenses depends on the rules attached to that aid.
Last-Dollar Example
$5000 in other grants applied first
+
+ $3000 last-dollar scholarship applied last to fill the remaining gap
$8,000 covered
The last-dollar scholarship had a $4000 maximum, but it only paid $3000 because that was the eligible balance remaining after the $5000 in other grants were already applied.
Understand Your Aid
Ask These Questions
Do not stop at phrases like “free tuition”, “full-ride”, or “up to $4,000.” See how the award actually works.
- Is this a first-dollar or last-dollar scholarship?
- Which grants or scholarships are applied before it?
- Does it cover tuition only, or tuition and mandatory fees?
- What about room and board?
- Could the amount be reduced because I received other aid?
- Could the scholarship pay $0 if my eligible expenses are already covered?
- Can any remaining aid help with books, housing, food, transportation, or supplies?
- What happens to any remaining money if all my eligible expenses are covered?
- What must I do to receive and renew the scholarship?
Still unsure? Ask the scholarship provider or your college’s financial-aid office for additional assistance (ideally before the school year starts).