What To Do After You’ve Won a ScholarshipAfter you’ve won a scholarship, you need to take care of a few housekeeping items before asking is your scholarship money considered income. First, you need to notify your college that you’ve won an outside scholarship. An outside scholarship is an award distributed by any organization other than the school to which you’ve applied. This is necessary so that the school can adjust your financial aid package. Adjusting your financial aid package is not meant to penalize you. In fact, this process works to your benefit. The first thing eliminated from the financial aid package would be student loans. Student loans require you to pay them back with interest after graduation. The less student debt you have after college, the better for your life in general.
Find Out: Is Your Scholarship Money Considered Income?
• The award covers tuition and fees to enroll in or attend an educational institution.
• Travel to and from school
• Clerical help
• Fees, books, supplies and equipment (that are not required for courses) This could get a little complicated. For instance, you may be awarded a scholarship that covers both tuition and room and board. The component of the award that covers tuition is tax free while the part of the scholarship that covers room and board is taxable.