Can I Keep My Scholarship Money?
Scholarships and grants are a great way to help pay for college. However, if you’ve earned scholarships and grants that add up to more than your total cost of attendance, you may be wondering what happens to the leftover scholarship money.
The answer is that you can keep the leftover scholarship money. Your school will typically send you a refund of the leftover scholarship money. This money can be used to pay for other educational expenses, such as books, supplies, or living expenses.
It’s important to keep in mind that you may have to pay taxes on the amount of the refund. If you’re a student, you’ll need to report the refund as income on your tax return. You may also be subject to a 10% penalty if you use the money for something other than educational expenses.
If you’re a parent of a student, you may be able to use the leftover scholarship money to help pay for your own educational expenses. For example, if you’re a parent taking classes at a college or university, you may be able to use the leftover scholarship money to help pay for tuition, books, and other educational expenses.
It’s important to remember that if you’re a parent, you may also be subject to taxes on the amount of the refund. Additionally, you may be subject to a 10% penalty if you use the money for something other than educational expenses.
In summary, if you’ve earned scholarships and grants that add up to more than your total cost of attendance, you can keep the leftover scholarship money. However, you may have to pay taxes on the amount of the refund, and you may be subject to a 10% penalty if you use the money for something other than educational expenses.
