Can You Keep Scholarship Money?
Scholarships and grants are great ways to pay for college tuition and other expenses. But what happens to the leftover scholarship money? Can you keep it?
The answer is yes, you can keep the leftover scholarship money. But there are a few things to consider before you decide what to do with it.
First, you should check with your school’s financial aid office to find out what their policy is on leftover scholarship money. Some schools may require you to use the money to pay for other educational expenses, such as books, supplies, or housing. Other schools may allow you to keep the money and use it however you want.
Second, you should also consider the tax implications of keeping the leftover scholarship money. Generally, if the scholarship or grant is used to pay for tuition and fees, the money is not taxable. However, if the money is used for other expenses, such as room and board, you may have to pay taxes on the amount.
Finally, you should think about how you plan to use the leftover scholarship money. If you plan to use it to pay for additional educational expenses, such as books or supplies, you should make sure you use it for that purpose. Otherwise, you may be required to pay taxes on the amount.
Overall, 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. Keep in mind, you may have to pay taxes on that amount. Before you decide what to do with the money, it’s important to check with your school’s financial aid office and consider the tax implications. That way, you can make sure you use the money wisely and get the most out of your scholarship.