<p>I actually received a few scholarships at my graduation a few nights ago, and am wondering how this will affect my financial aid and how I should go about reporting them to the University?</p>
<p>They are scholarships from my High School, local area businesses, and a trust fund scholarship type thing. I am REALLY hoping this won't bring my grant money down, but am not positive.</p>
<p>So if you could answer, when should I report these, and will they bring down my grant money or would they go towards my gap/loans (enough to cover all but 2000 in loans!)</p>
<p>Sorry, but they will take your scholarship money from your grant money until your grant money is zero. Then they’ll start taking it from your loans. Then they’ll give it to you. Terrible system but that’s how they do things (well for me anyways)</p>
<p>Well, who are they writing the scholarship checks to? If to the school, they’ll definitely know about it and take away grant money first. But if they are just writing a check directly to you…</p>
<p>I don’t receive aid from U-M, but I do have a nice scholarship where the check is written directly to me every September. The award is tax-free because it is for tuition, I don’t see why you would report that to U-M. Unfortunately most groups probably won’t work things this way.</p>
<p>you are in good shape in my book. you won’t have to report those checks on your tax forms because as long as you use them for tuition (not room and board), they are tax free. therefore u of m should really never even know that you got em.</p>
<p>Don’t they have an ethics class at Michigan? If you are getting financial aid you have to report all your income and outside scholarships would surely qualify. I don’t think how the checks are made out will make a difference.</p>
<p>For the record, U of M does not “penalize” you as much as is suggested here in this thread for additional scholarship money. My s received a departmental scholarship. They did not touch his grants; they first reduced the amount of his LOAN. Legally, all schools DO have to consider every resource in calculating need for federal aid. Some schools take ALL of it from grant. U of M applies it instead to “self help” where possible, such as loans, etc. Sometimes, they do have to apply it against certain types of grants.</p>
<p>And ditto what Fredmar said. It is indeed reportable income to both the OFA and IRS, let there be no doubt. It only becomes “tax free” if you use it (and nothing else) to pay tuition. But if part of your fin aid package or school scholarship is to cover tuition, then money in excess of receipted educational expenses IS TAXABLE, whether it’s from U of M or an outside scholarship source.</p>
<p>Congrats. Hope that helps. Now you know what you need to do. You can report it on WA under the finaid link. They will then generate you a new package.</p>