What is a Scholarship Lottery?

A scholarship lottery is a lottery with a cash prize, but the cash must be used towards a college degree or some other educational program. With a traditional scholarship application, you usually need to fill out a lengthy application, and you are judged on either your academic or financial merits. With a scholarship lottery, you only provide some very basic information – usually only your name, address, and email – and you simply wait to see if you are one of the lucky winners.

Disadvantages to a Scholarship Lottery

As with any lottery, you have only a slim chance of winning. You may also not win enough to cover the full cost of your tuition. Also, since lenders often use scholarship lotteries as promotional tools, you also may receive unwanted advertising emails or mailers from the sponsors, which can be a nuisance.

Finding Scholarship Lotteries

Many lenders offer scholarship lotteries as a means to promote their regular educational loan programs. Check with your local banks and other lenders to see what lotteries or sweepstakes they may have. The state of Arkansas also offers its own scholarship lottery program – however, you must be attending a school within Arkansas to qualify.

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