Winning a scholarship is an exciting experience, but it can also be a bit confusing. What happens when you win scholarship money? How do you use it? What if you don't use it right away? Here's what you need to know about winning scholarship money and how to make the most of it.When you win a scholarship, the first step is to declare it to the university you plan to attend. This will cause the school to reevaluate your financial aid package, as you are now considered less “needy” and may not need as much financial aid. If you don't use the scholarship money right away, it will be held for you until you need it.However, many scholarship providers will request reimbursement for most of the scholarships you have obtained if they remain unused.
If this is the case, beneficiaries can try to contact the source of the scholarship to find out how they can keep their scholarships for later use. It's also important to ask your university's financial aid office to help you calculate the taxable portion of your scholarships.If you return the funds to the scholarship fund provider, the money may be transferred to another worthy student who is struggling financially while attending college. Scholarship rules set by scholarship providers, especially for smaller scholarships, prevent recipients from converting scholarships into money for personal use. The best alternative, instead of going into debt for student loans, is to find scholarships and other forms of financial aid to pay for college.If the scholarship exceeds tuition and expenses for the year, the extra money may be returned to you to use however you want.
However, if you're lucky enough to get a scholarship that gives you money for more than one semester, conditions such as maintaining a certain GPA may apply. Using the scholarship money for other things, such as a spring break trip or a new car, also makes your funds taxable, so you may face legal action from the scholarship sponsor.If using your
scholarshipthis year means you lose other forms of financial aid (such as a grant), ask the
scholarshipprovider if you can defer your
scholarshipto a future year. Scholarship money is a form of aid that helps students pay for college tuition and other education-related expenses.You can try contacting the source of the
scholarshipand your school's financial aid office to learn how to set aside the
scholarshipmoney for later use. Private scholarships can be sent directly to your university account or they can be sent to you in the form of a check or direct deposit into your bank account.
In some cases, if you earned scholarships and grants in an amount greater than the total cost of attendance, your school can send you a refund of the money left over from the