What Happens if You Win Too Many Scholarships?
Scholarships and grants are a great way to pay for college, but what happens if you win too many? It’s a common question, and the answer is that you may receive a refund of the leftover scholarship money.
When you apply for scholarships and grants, you should always make sure that the total amount of money you receive does not exceed your total cost of attendance. Your school will use the cost of attendance to determine how much financial aid you are eligible for. If you receive more money than your total cost of attendance, you may be sent a refund of the leftover scholarship money.
However, it’s important to note that you may have to pay taxes on the amount of the refund. This is because the IRS considers any money received from scholarships and grants as taxable income. So, if you receive a refund of scholarship money, you may have to pay taxes on the amount.
In addition, you should also be aware that the amount of money you receive from scholarships and grants may affect your eligibility for other types of financial aid. For example, if you receive a large amount of money from scholarships and grants, you may not be eligible for certain types of student loans.
It’s also important to remember that you may not be able to use the leftover scholarship money for other expenses. Many scholarships and grants have restrictions on how the money can be used. For example, some scholarships and grants may only be used for tuition and fees, while others may only be used for certain types of expenses.
Overall, it’s important to be aware of the potential consequences of winning too many scholarships. If you receive a refund of the leftover scholarship money, you may have to pay taxes on the amount. Additionally, the amount of money you receive from scholarships and grants may affect your eligibility for other types of financial aid. Be sure to read the terms and conditions of any scholarships and grants you receive to ensure that you understand how the money can be used.