A study by financial services company Sallie found that 55% of students increased their student loan borrowing because they did not apply for scholarships. The research, reported by ConsumerAffairs on August 5, 2026, indicated that millions of dollars in scholarship funding remain unclaimed annually.
According to the findings, many students abandon the application process before completion. The study reported that 69% of students spend less than one hour on a scholarship application before quitting. Furthermore, 61% of students surveyed said they abandoned applications before writing any content.
The research identified several barriers to completing applications, including the perceived time commitment and the complexity of the process. While 77% of students stated they would be more likely to apply if they had access to a dedicated advisor, the report noted that many students do not utilize available free resources such as high school guidance counselors or college financial aid offices.
Experts cited in the report suggested that students often prioritize large, national scholarships with high competition while overlooking smaller local awards. The report recommended that students pursue opportunities from community foundations, local businesses, and service clubs, noting that these smaller awards often have fewer applicants.
The concrete day-to-day change for students involves a shift in time management and financial planning. Rather than facing higher monthly loan payments after graduation, students who successfully secure scholarships see a direct reduction in the total cost of their education. The report suggested that dedicating 30 to 60 minutes per week to applications could change a student's financial outlook by the time tuition bills are due each semester.
The knock-on effects include increased pressure on college financial aid offices and high school counselors as students seek help to navigate the process. Increased scholarship participation may also affect the student loan market and the allocation of funds by private and corporate scholarship providers. The report noted that federal resources like the U.S. Department of Labor's CareerOneStop and private search engines like Fastweb remain available for students to track deadlines and requirements. What happens next depends on individual application cycles, with students advised to track specific deadlines through spreadsheets or calendars to ensure submissions are completed on time.