Diversity Scholarships Are Shrinking – Here’s What Counselors Should Know
If you’ve routinely pointed students toward scholarships designated for students of color, women, or other underrepresented groups, the landscape has shifted.
New data from the National Scholarship Providers Association, which tracks more than 33,000 scholarships, shows the share of scholarships with eligibility requirements tied to race, ethnicity, gender, or other demographic factors has dropped from 15% in 2023 to 11% today. The decline follows the Supreme Court’s 2023 ruling barring race-conscious college admissions, as well as subsequent legal pressure and federal scrutiny that has pushed many scholarship providers to revise their criteria.
Importantly, most of these scholarships aren’t disappearing. Organizations are more often opening them up to all applicants or shifting eligibility to factors like income level, first-generation status, or geographic background. But for students who previously would have qualified based on identity, the pool of targeted funding is smaller than it was.
A few practical implications for counselors:
- Broaden the search strategy. Students who in past years might have led with identity-based scholarships should now cast a wider net, including merit-based, field-specific, employer-sponsored, and community foundation awards.
- First-generation and income-based criteria are growing. Many providers are redirecting funding toward socioeconomic factors as a race-neutral alternative. Students who qualify on those grounds may find more opportunity than before.
- The situation is still evolving. Providers are navigating uncertain legal territory and criteria changes can take a year or more to work through. Scholarship databases may not reflect the most current eligibility requirements, so it’s worth verifying directly with providers.
