Watts, who is studying Speech Language Pathology at Ithaca College, was one of nearly 2,000 people who applied for the contest.
Watts told the Today Show she needed the money for graduate school after her families finances took a hit while her father battled esophageal cancer.
When host Hoda Kotb told Watts she had won the scholarship, Watts burst into tears.
Ferrell then came out of the crowd to present Watts with a giant check.
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