Do Scholarships Hurt Financial Aid?
Do scholarships hurt financial aid? It’s a common question among students and parents trying to figure out how to pay for college. The answer is yes, a scholarship can affect your other student aid because all your student aid added together can’t be more than your cost of attendance at your college or career school.
A scholarship is a form of financial aid that does not need to be repaid. It is usually awarded based on academic achievement, athletic ability, or some other criteria set by the awarding organization. A scholarship can come from a variety of sources, including private organizations, employers, and colleges and universities.
When you receive a scholarship, it can reduce the amount of other financial aid you receive. This is because the total amount of aid you receive cannot exceed your cost of attendance. For example, if you receive a scholarship for $5,000, and your cost of attendance is $20,000, you can only receive $15,000 in other financial aid.
It’s important to note that not all scholarships will reduce your other financial aid. Some scholarships are “free money” and do not count against your financial aid package. These are usually awarded by private organizations and do not need to be repaid.
It’s also important to understand that some scholarships may be taxable. If you receive a scholarship that is more than your tuition and fees, the excess amount may be considered taxable income. This means you may have to pay taxes on the amount.
When it comes to scholarships, it’s important to understand how they will affect your other financial aid. If you receive a scholarship, it can reduce the amount of other financial aid you receive. It’s also important to understand that some scholarships may be taxable.
In conclusion, do scholarships hurt financial aid? Yes, a scholarship will affect your other student aid because all your student aid added together can’t be more than your cost of attendance at your college or career school. It’s important to understand how scholarships will affect your other financial aid and whether or not they are taxable.
