Is it possible to use scholarship money for personal expenses?

I've been fortunate enough to secure a few scholarships for college, but I'm not sure about the restrictions on how the money can be used. I know that tuition and books are a given, but are there any chances I can use some of the scholarship funds for personal expenses like transportation or buying a new laptop?

What are the typical rules around this, and do they vary significantly from one scholarship to another? I'd love to hear from anyone who's successfully navigated this or learned the hard way what is and isn't allowed!

How scholarship money can be used usually depends on the scholarship itself and the related rules set by the granting institution or organization. Many scholarships are directed straight to your college or university and applied to your tuition, fees, and room/board (if you're living on campus), effectively reducing the cost of your bill from the school. These are typically termed "tuition-specific" scholarships. And if your scholarship exceeds the cost of these expenses, the remaining balance is often refunded to you by your school.

However, there are also "direct payment" scholarships, where the funds are given directly to the student, typically in the form of a check. Though these funds are intended for educational expenditures, they can often be used for related personal expenses like transportation costs or electronics needed for school like a new laptop.

It's important to remember that the rules vary by scholarship. When in doubt, the best course of action is to directly reach out to the organization or entity that provided the scholarship to clarify what expenses are covered. Asking in advance can help to avoid any potential problems down the line.

Note that while it may seem like a windfall to get extra money, remember that some portion of the scholarship funds may be taxable if they’re used for non-qualified education expenses (like plane tickets or a new wardrobe), so you might want to consult with a tax advisor.