Education is essential for both individual growth and career advancement, but not all education is free. While the United States offers free education for the K-12 grades, higher education is often harder to obtain as a result of finances. Corporate scholarships are one method of bridging the gap for students that hope to achieve more education without worrying about an excess of student loans plaguing them for the foreseeable future.
In this post, we’ll explore the importance of scholarships in supporting education. We’ll also take a brief look at the types of corporate scholarships and the benefits of them for the companies that decide to offer them to the public.
What is a corporate scholarship?
Just like it sounds, it’s a financial award created by a corporate business/organization with the intention of helping one or many hopeful candidates further their education.
There are two generally accepted types of corporate scholarships: merit-based and need-based.
Merit-based scholarships generally require things like:
Need-based scholarships on the other hand are typically awarded to students facing financial hardships.
Within these two types of there are several subsets of corporate scholarships including:
What are the benefits of corporate scholarships?
For the recipient, the benefit is pretty obvious - they can offset the costs of higher education. For corporations on the other hand, there are multiple benefits such as:
Note - you will likely need to file paperwork with your city, state, and/or the federal government to ensure any tax benefits are received legally.
The cost of education has been steadily increasing, making it challenging for many students to pursue higher education. Tuition fees, textbooks, accommodation, and other related expenses pose significant financial burdens on students and their families. As a result, students may face limited options such as taking on substantial student loans or working multiple jobs, which can negatively impact their academic performance and overall well-being. The rising cost of education creates barriers that prevent talented individuals from accessing educational opportunities and realizing their full potential.
Perhaps the importance of corporate scholarships has never been greater than it is 2023. With the federal government up in arms over student loan forgiveness and a constant stream of stories of inflation and program fee increases, students are looking for more help than ever before. In fact, a 2023 survey created by The National Association of Student Financial Aid Administrators (NASFAA) found that the cost of obtaining a degree was the number one reason 55% of students didn’t enroll in college.
When corporations step up to the plate, not only do they enjoy all the benefits we mentioned above, they also help college hopefuls fulfill their dreams. It’s a win-win for everyone.
Corporate scholarships play a pivotal role in:
By actively seeking out and supporting students from diverse backgrounds, including racial and ethnic minorities, women, and individuals from underrepresented groups, these scholarships help create a more inclusive and equitable educational environment. They also serve as a recognition and reward for deserving students who have demonstrated exceptional academic achievements, leadership skills, or talents in specific fields.
By providing financial support, mentorship, and networking opportunities, corporate scholarships empower students who might face systemic and/or financial barriers and ensure that their voices and perspectives are represented in higher education institutions and professional fields.
Scholarships can be considered a form of corporate social responsibility (CSR) when they are offered by corporations as a means of giving back to society and investing in education. Corporate social responsibility refers to the initiatives and actions taken by businesses to contribute positively to the well-being of communities and society as a whole, beyond their core business activities.
It's worth noting that while scholarships can be part of a company's CSR strategy, they are just one component of a broader range of activities. CSR encompasses various initiatives, such as environmental sustainability, ethical business practices, community development, philanthropy, and employee welfare.
That said, corporate scholarships can go a long way in building a positive brand image, and lead to strong partnerships between corporations and educational institutions. By working together, corporations and educational institutions can align their goals, expertise, and resources to enhance educational experiences, address industry needs, and develop future talent. Such collaborations create a symbiotic relationship where corporations benefit from access to a pool of skilled graduates, while educational institutions gain industry insights and support to stay relevant and provide students with real-world experiences.
Corporate scholarships can have a long term, positive impact on society
By providing financial support and opportunities for education, these scholarships empower individuals to pursue higher education, expand their knowledge, and develop crucial skills. The long-term effects on individuals include increased earning potential, improved career prospects, and enhanced socioeconomic mobility. Education opens doors to new opportunities, allowing scholarship recipients to contribute meaningfully to society, both economically and socially. Additionally, the ripple effect of corporate scholarships extends to communities, as educated individuals bring their knowledge and skills back to their communities, positively influencing social and economic development. The impact of corporate scholarships can be seen in the form of community leadership, entrepreneurial ventures, and the overall growth and well-being of society.
While the goal of this post was to shed light on the importance of corporate scholarships in supporting education, we’d be remiss if we didn’t share the common challenges corporations face in creating them. Some common challenges include:
To overcome challenges and maximize the impact of corporate scholarship programs, several strategies can be employed:
Corporate scholarships can help the community and further academic achievement, but the truth is creating a scholarship isn’t right for every organization. Some businesses have the understandable fear that it will add too many tasks to their already full plate. The good news though is that there are software solutions that help companies just like you to start and execute a scholarship program. We have a 7-step guide you can read if you want to learn how to start a scholarship program of your own.
And, when you’re ready to launch your program, we hope you will consider using SmarterSelect to manage it. For the better part of two decades we have helped nearly two million people across the globe with managing, analyzing, applying for, and evaluating online scholarship applications. Click here to learn more about what we can do for your organization and get a free demo.