Puzzling scholarship situation

<p>I receive the Montgomery G.I. Bill which covers my tuition 100%. Last year I signed up for FAFSA and without me knowing I was accepted for a scholarship. I received no notice or anything. I was sent a check for the amount of the scholarship since my tuition was payed. It came with a note saying</p>

<p>"The enclosed check is a refund from your account. Due to the regulations governing the application of Student Financial Aid awards the payment of this refund does not guarantee that that your account is paid in full. You remain responsible for any and all unpaid charges."</p>

<p>Is this common? I was under the impression that the students never receive any money from scholarships, and that they go to tuition only. Is this check a mistake? or can this happen?</p>

<p>Ir would depend on the terms of the scholarship. Many scholarships are not designated for a particular expenses. If they are not designated for a particular expense then it is perfectly normal to receive the money as a refund if all other costs have been paid. (my daughter has a tuition scholarship and a cash scholarship. The cash scholarship can be used for any expense and she gets it in a refund and uses it for rent & food etc).</p>

<p>However if it used for expenses other than tuition/fees/required books then it is taxable income.</p>