Can you keep scholarship money?

I'm curious about what happens if you receive more scholarship money than the cost of your tuition. Are there scenarios where you get to 'keep' the excess scholarship funds, or does it usually go back to the scholarship provider or school?

I've heard cases where students use leftover scholarship money for other educational expenses or even personal use, but I’m not sure how common or legitimate this is. If anyone has experience with having excess scholarship funds, I’d love to know how it was handled! Thanks in advance.

In many cases, if your scholarships and grants exceed the cost of tuition, fees, and on-campus housing, you can receive a refund for the surplus amount.

However, it really depends on the type of scholarship or grant and the school's policy. Some scholarships are solely for tuition costs, and in such cases, if the scholarship exceeds the tuition, the excess funds usually revert back to the scholarship provider. In other situations, scholarships may not have specific restrictions on usage, and any excess funds could be returned to you for use on textbooks, living expenses, or other education-related expenses.

Federal Pell Grants are one such case - if the total grant amount you're awarded exceeds your tuition and fees, the leftover money will be returned to you to spend on educational costs like room and board, textbooks, or transportation to and from school.

Keep in mind, when you receive a refund, that money is still earmarked for education-related expenses. Misusing scholarship funds could potentially affect your eligibility for future aid, so it's always a good idea to understand the terms of every scholarship or grant you receive.

If you're unsure, you should reach out to your school's financial aid office and discuss the specifics of your financial aid package and your scholarship. They'll be the best source of information on this matter.

Always remember to report any scholarships you receive to your school's financial aid office, as they may need to adjust your financial aid package accordingly to avoid over-awarding aid.