Scholarship sponsors often have rules about how you can spend the money. You could lose your award if you don't abide by the rules. Many students avidly read the scholarship eligibility requirements, but they skip the rules for using the money. Make sure you understand what's allowed and what isn't. What happens if you use scholarship money for something the rules don't allow? While it's unlikely that the scholarship sponsor will seek legal action, in most cases, you will have to repay the entire award.
If the scholarship is renewable, you could lose out on the remaining years. And you'll have to come up with another source of funds to cover the expenses you planned on using the scholarship for.
Some scholarships may allow you to put the money towards transportation costs on campus. But, having a car is not one of them. You might feel tempted to use your scholarship money for personal expenses. But remember, when you win a scholarship, you are signing a contract with the scholarship provider.
One of the terms you agree to is to use the scholarship money how they tell you to use it. Scholarship money is mostly intended for educational purposes only. Probably yes. Books are one of the most common ways that students use their scholarship money. Books are extremely expensive and can add up. Luckily, students with scholarships can often use the money for books and supplies. From books and lab fees to room, board, tuition and more, scholarships can cover many of the typical costs associated with higher education.
If you find yourself needing to fill the gap between your federal aid and any scholarships or grants you win, private student loans can help you bridge that gap. How your scholarship money is delivered to you may affect your options for using it. While money from most large scholarships is sent directly to your college, some scholarship money may be paid directly to you.
If you have any doubt, talk to your financial aid office for guidance about how to use scholarship money and what expenses, like these, can be covered by scholarship money :. No matter the amount of scholarship money you are awarded, each scholarship will designate exactly what the money can be used for. It is your responsibility to understand those regulations. Read your scholarship award details carefully. Even if a scholarship covers living expenses, there will be language indicating the types of personal expenses allowed such as travel or food.
Scholarships come with strings attached, like requirements to keep a certain grade point average, take specific types of classes, or pay for specific items as mentioned above to ensure you will use the scholarship towards your education. Department of Education. College education is expensive. Scholarships are a sensible way to bridge the gap between the increasing cost of tuition and your budget.
Where does scholarship money go? If you earned a scholarship, congrats! How private scholarship money is distributed Private scholarships may be sent directly to your college account or they may be sent to you in the form of a check or direct deposit into your bank account.
Ask if other forms of financial aid will be reduced or eliminated due to a private scholarship Grants are distributed similarly to scholarships Generally, grants for college are associated with free money from the government based on financial need.
What happens to leftover scholarship dollars If you earned scholarships and grants that amount to more than your total cost of attendance, your school may send you a refund. Scholarships and college savings plans college savings plans charge taxes for funds withdrawn for anything other than qualified education expenses for the beneficiary the person chosen by the account holder to use the funds. Get matched with college scholarships Our free Scholarship Search helps you find scholarships as unique as you are.
Related topics. Sallie Mae does not provide financial, tax, or legal advice and the information contained in this article does not constitute tax, legal, or financial advice. Sallie Mae does not make any claims, promises, or guarantees about the accuracy, completeness, or adequacy of the information contained in this article.
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