Can You Keep Leftover Scholarship Money?
Scholarships and grants are a great way to help pay for college. But what happens to leftover scholarship money? If you earned scholarships and grants that add up to more than your total cost of attendance, your school may send you a refund of the leftover scholarship money.
The amount of money you receive in scholarships and grants can vary greatly. Some scholarships are awarded based on merit, while others are based on financial need. Some scholarships may cover the full cost of tuition, while others may only cover a portion of it. It’s important to understand the details of each scholarship and grant you receive so you know exactly how much money you’ll have to pay out of pocket.
If you receive more money in scholarships and grants than you need to cover your total cost of attendance, you may be eligible for a refund of the leftover scholarship money. The amount of the refund will depend on the terms of the scholarship or grant. Some scholarships and grants may require you to use the leftover money for specific expenses, such as books or living expenses. Other scholarships and grants may allow you to keep the leftover money for personal use.
It’s important to note that any money you receive as a refund of leftover scholarship money may be considered taxable income. You should consult with a tax professional to determine if you need to report the refund as income on your taxes.
In some cases, the school may offer you the option to apply the leftover scholarship money to future semesters. This can be a great way to save money in the long run, as you won’t have to pay out of pocket for tuition and other expenses in future semesters.
Overall, if you receive more money in scholarships and grants than you need to cover your total cost of attendance, you may be eligible for a refund of the leftover scholarship money. Keep in mind, you may have to pay taxes on that amount. It’s important to understand the terms of each scholarship and grant you receive so you know exactly how much money you’ll have to pay out of pocket.
