Winning a scholarship is a great accomplishment. Who wouldn’t want free money for school?
But, did you know that there may be conditions on how the funds are spent?
That means you may or may not be able to use your scholarship money in any way you wish.
This begs the question, how can scholarship money be used? Below, we’ll cover all you need to know about this topic in your college career.
How College Scholarship Money is Delivered to You
Scholarship money may be delivered to you in one of several ways. Those who run the scholarship program usually decide how this happens. Typically, you can find this information in the scholarship rules before you apply.
One way you might receive award money is by payment into your student account. In this case, the money would be paid directly to your college, and you would see a credit in your profile.
Another way you may receive the money is by check or electronic cash transfer to your bank account.
Example
For example, many scholarships based on financial need typically send funds straight to your college. In the case of high school students, money is released once you officially enroll at your college or university.
Additionally, it’s important to know that scholarships may have spending restrictions on the types of things you can spend on. So, let’s cover how scholarship providers permit you to use scholarship dollars.
Before Using Scholarship Money: Check Eligibility Criteria
How you can spend scholarship money is determined by scholarship providers. These rules should be laid out in the terms and conditions or eligibility requirements of a scholarship opportunity.
It’s helpful to know if you can use scholarship money for anything at all or if the funds must be spent in a particular way. This will help you with planning your college education.
Use Scholarship Money for Tuition
Several scholarships will only allow you to put prize money toward college tuition. As mentioned previously, money in this case will be sent to your college registrar or financial aid office. A credit is then applied to your account.
Scholarship Money for Education Expenses
Other types of scholarships are awarded to students to help with the overall cost of attending college. Typically, things like books, supplies, or items related to your program qualify.
You should know that education-related expenses is a broad category. If you have any questions about where you can spend the scholarship money and about what counts as an education-related expense, you can always get in touch with your financial aid office or the scholarship provider.
Scholarship Money to Cover Room and Board Costs
One of the other major categories for scholarship money is living costs. This includes paying for housing and meal plans.
As you may know, living in a college residence can be expensive. The cost of renting a dorm in tandem with food costs can add up. For this reason, certain scholarships exist exclusively to help with these expenses. If you’re not able to live at home as an undergraduate or graduate student, scholarships for living expenses can be a great way to keep your monthly cost of attendance low.
In the long term, these scholarship prizes also help college students avoid ballooning credit card bills, private student loan debt, or other forms of financial aid that must be paid back.
College Scholarships for Anything? Using the Money for Other College Costs … and Maybe a Spring Break Vacation
Not all scholarship awards will have terms and conditions on prize money. In other words, you can spend the winnings on anything you want – including the cost of college, paying down a student loan, or new school supplies. You’re also not limited to spending on items related to school. So, yes, you can technically spend it on a trip or spring break vacation, among many other things.
These types of awards are usually given out by private scholarship donors (not a school or government institution). If you require more spending flexibility, try to find scholarships without strict spending criteria.
What Happens to Unused Scholarship Winnings?
How unused scholarship money is handled depends on the scholarship provider or your school.
In most circumstances however, leftover money is sent to you as a refund. Be sure to understand any tax requirements on this money.
Are Scholarships and Grants Handled the Same Way?
Yes, scholarship and grant money are delivered to you in an identical fashion.
Similarly, grants, which usually come from a federal or state government, have spending restrictions. Given that grants are normally need-based, the funds are tied to eligible expenses.
Have a Student Loan or Financial Aid Package? Be Sure to Check Terms on Using the Scholarship Money
If you simultaneously receive a private scholarship and student aid, you should speak with someone from your college’s registrar or financial aid office. The scholarship prize may influence the amount of federal student aid that you qualify for, and you shouldn’t be blindsided by an unexpected dip in finances.
Remember that while filling out the FAFSA, Pell Grant, and other financial aid applications, you’re asked for your statement of income. Receiving a scholarship check could change your status for financial aid packages depending on the amount of scholarship funds you receive.
Summary: What Can You Use Scholarship Money For?
Paying for college seems to get harder each year. That’s why scholarships should be a part of any student’s financial budgeting and college plan. When trying to figure out what scholarship money can be used for, here’s a summary of some things to consider:
- How you spend scholarship funds depends on the terms and conditions provided by a scholarship donor.
- To determine what you can use scholarship money for, check the fine print when conducting a scholarship search.
- The most common things you can use scholarship money to pay for are tuition, education expenses, and room and board.
- In cases of unused funds, students are normally sent a refund check by their college or university registrar.
- Not all scholarships for college have restrictions on how you spend the money, so check the fine print.
The post Smart Spending: Ways You Can Use Your Scholarship Money first appeared on BridgesEDU Scholarships.
Published first here: https://bridgeseduscholarships.com/smart-spending-ways-you-can-use-your-scholarship-money/
BridgesEDU Scholarships 