Has anyone here done this before? I've been working at an Eikawa since September of last year, but I've found that the English teaching is really interfering with my Japanese studies. I've been wanting to switch over to language school or college to hone my Japanese skills. However, there seems to be almost no information on the internet for prospective students already in Japan.

I haven't heard of scholarships for language schools before but I got a MEXT scholarship for my graduate degree applying within Japan through the university

I know that a few Tokyo language schools award a few scholarships for the very best full-time students, based on test performance, class participation, and positive attitude; financial need may be mixed in there also. I've only known Chinese and Korean students to receive the scholarships. Given their superb language performance (and the absolutely horrendous living conditions they endured in Tokyo), I believe the awards were fairly awarded.

Don't be demotivated, however. There are reasonably priced language schools in Tokyo can find private tutors that charge nearly the same hourly rate for one-on-one tutoring. There are even some free weekly programs offered by local organizations.

Are you in Tokyo?

There are a few options that offer full-time language instruction and the opportunity to be nominated for tuition exemption or scholarships. Try IUC (https://web.stanford.edu/dept/IUC/cgi-bin/) and also remember that any public or private university in Japan is able to nominate you (after admission) for an MEXT - in the way that dizmoz described.