Money left over from Pell Grant

<p>I just got my Pell Grant today for the upcoming Spring Semester. I have registered for classes before I received the financial aid, and purchased used books to save money just in case I wouldn't get the grant. I also paid 20% downpayment when I registered for the classes and signed up for the monthly tuition payment plan. Now, there is a good amount left from the financial aid. Will the remaining financial aid be issued to me by the end of the semester? Or will I only be reimbursed for the downpayment? I bought most of my books from ebay and Amazon (used) and not from the college book store. Will I be reimbursed for those as well? If the school will give me the entire remaining financial aid, how will they know that the money will not be spent on something besides school related expenses?</p>

<p>Any advise would be appreciated. Thank you!</p>

<p>They should refund you the entire balance of your financial aid. When they do will depend on the school. My daughter’s school does refunds about 2 weeks after class starts. Mt son’s school takes about 4-5 weeks.</p>

<p>Remember financial aid is based on the COA of the school and will include allowances for things like travel and personal expenses and room and board. Spending the financial aid reimbursement on these things is expected. My daughter lives off campus and pays her rent and bills with her reimbursement.</p>

<p>That makes sense. Thank you. I thought they will only reimburse the amount that’s spent for the books and tuition downpayment. Now, will the school need some kind of proof that I’ve spent the remaining money on school-related expenses? Or it’s pretty much up to me how I’ll spend it? I’m actually planning on saving it so I’ll have some money put away when I transfer to finish my bachelor’s at a four-year university since their tuition will be a lot more than what the tuition is now at my school.</p>

<p>No they don’t ask you how you spent it.</p>

<p>You may owe taxes on any grants/scholarships in excess of the cost of qualified expenses (tuition/fees and required books). Something to be aware of so you don’t get a nasty surprise next April!</p>

<p>Ohhh…thank you so much!! That clarifies a lot! So, might as well spend it then. hehe!</p>

<p>Well you’d still owe taxes even if you spent it (if your total income is enough). Only the grants scholarships spent on tuition/fees and required books are tax free. Grants/scholarships spent on any other expenses (even those in the COA) are taxable income. </p>

<p>I’m glad your pell came through by the way. I remember how worried you were about it before Christmas.</p>

<p>Oh, I see…there’s not a whole lot left anyway, so even if it’s taxable, it won’t be that much. Yes, my husband got his Pell as well. Thank you…it was a loooong arduous wait. We submitted our FAFSA for the 2010-2011 and we’re selected for verification again…oh well. At least, we’ve been through it once and we already know what to expect. This forum is a blessing. I’ve learned so much from all of you here…esp. you, swimcatsmom. Thanks again! :-)</p>