I’m thrilled to share that I’ve just received a full ride scholarship for the university I’ll be attending next fall, covering tuition, room and board, fees, and everything else.
My question is about my external scholarships, which total between $2,000 and $5,000. What will happen to these external scholarships now that I have the full ride? Please note that these are all scholarships, not awards or giveaways.
It depends on the school! Some schools will reduce or eliminate your external scholarships if they exceed your Expected Family Contribution (EFC), keeping the excess funds and requiring you to pay the amount specified in your financial aid package.
I also have a full ride that covers the same expenses, and I believe my school reimburses external scholarships. You might need to review the terms and speak with your school’s cashier’s office when the scholarship payments are processed.
Colleges include indirect costs in their cost of attendance estimates. If your scholarships exceed the actual cost but are less than the projected cost of attendance, you may be able to get a refund for the excess amount. However, if it’s a CSS profile school, the excess might just reduce your merit aid. Remember, you will be taxed on scholarships that aren’t used for tuition, books, or fees. Room and board and any remaining scholarship funds are taxable and will be reported on a 1098-T form.
Congratulations on the full ride! Be sure to check the terms of your scholarships—some may allow you to keep or apply them to other expenses, while others might need to be returned or declined.
Ideally, you’d receive refunds, which would be fantastic!