<p>ok, before i talk about this, i know that technically you are supposed to report all the awards you receive to your university, but i just wanted to discuss my situation too. </p>
<p>i received a very generous grant from the university i applied to (which i am very, very grateful for; please don't think i'm being ungrateful), meaning any of the scholarships i received would just go to reducing university grants (the college will just eat it up unless i somehow get over $40,000 in outside scholarships). </p>
<p>my question then, is should i really report ALL my scholarships? there are tons of college-related expenses that could amount to thousands of dollars that i could spend my scholarships on. </p>
<p>before you answer, consider this. some of the local organizations that awarded me with a scholarship INTENDED for its award to be used for "college-related" expenses that include things besides tuition, room and board, and other fees that are directly billed to the university. considering that then, how is not reporting these scholarships "fraud" or illegal in any sense? the way i see it, it's like a family friend giving you $1,000 to spend on your "college stuff." and can't you just say that these are almost like "contest awards"? that's not a scholarship, is it?</p>
<p>It doesn’t matter “how you see it.” You are REQUIRED to report it. If you don’t, you risk losing everything you’ve gotten from the university.</p>
<p>It does bite though. This is why I told my D not to waste her time applying for outside scholarships. It benefits the college alot more than it benefits you, in many cases.</p>
<p>What is REQUIRED depends on what contractual language has been signed, what the terms of this possible “scholarship” are, whether “scholarship” or equivalent terms are clearly defined in the agreements between the student and the university (or the student and the award source), and possibly other things. An outside “scholarship” that pays the recipient directly might be reportable as student income, or a gift if there was no application involved. </p>
<p>I suppose the college has fully debugged boilerplate language in the enrollment contract to take care of this, but it merits a reading.</p>
<p>You’re rationalizing, dear. It’s really not the intent of the locals that’s the issue here. It’s the terms of the grant that you accepted that you must abide by. In situations like this, it’s often best to apply the “light of day” test. If all the facts were on the table for others - including the university and local sponsors - to evaluate, what would the correct answer be? The university put forth their belief in you (and your integrity) in very real terms. Were they wrong? All of us have a consience to live with and my guess is that the amount of the local awards will not assuage yours, or you wouldn’t be asking the first place. </p>
<p>I would recommend asking your university if you may accept and keep “outside expense” awards to cover whatever parts of your COA that their grant doesn’t. They may surprise you with a yes and, in any case, will be impressed by and appreciative of your honesty, thus affirming that they made a wise choice. If they say no, you have the option of declining the local awards and letting them go to someone else who may need them.</p>
<p>The student is not required to interpret the terms of the enrollment and financial aid contract(s) in the manner most favorable to the university. </p>
<p>Quite the opposite, actually. The agreement is not a bargained contract but one drawn up by the universities’ lawyers, and presented as a contract of adhesion: “take it or leave it”, after the student’s other options have been extinguished. It is a general principle that ambiguities in such a contract are construed against the party that drafted it.</p>
<p>If the terms of the bargain leave no room for doubt, then there isn’t much to discuss.</p>
<p>Whether you get to keep the outside awards or not, your having earned them benefits your alma mater. The validation of your accomplishments that the various awards represent reflect well or your college.</p>
<p>Even if it is subtracted from your stipend, outside money that you bring into your institution strenghtens it and frees up resources for other purposes. This builds its reputation and benefits you, albeit indirectly.</p>
<p>That being said, I hope you get to use the money for our own (sure to be significant) college expenses. Do not fail to report awards.</p>
<p>thanks for your replies; many of you confirmed what i already expected. </p>
<p>but here’s the final kicker i’d like to add to my situation. i didn’t want to talk about the details of my financial situation, but i think i have to for you to fully understand why i’m so reluctant to report my scholarships. i’ll edit my original post for new viewers too. </p>
<p>The 2009-2010 Anticipated Expenses look like this:
Tuition: $37,380
Room and Board: $11,463</p>
<ul>
<li>These are the only two items billed to the university, meaning my account will show that $48,843 is due to the school.</li>
</ul>
<p>The budget then goes on to include:
Books: $1,485
Personal Expenses: $2,385
Travel: $345
Orientation: $438</p>
<p>To make the grand total: $53,496</p>
<p>Then the statement includes my aid, and from various sources it appears to be: $48,896, which actually exceeds what is billable to the school. </p>
<p>That means me family’s $2,600 contribution and my $2,000 student contribution will go to college-related expenses NOT billed to the school. First of all, I don’t understand how any of my awards will reduce my student contribution (will they write a stipend check?). Second, if the only things the university expects me to pay for are personal expenses anyways, I just don’t understand why I can’t use the resources I already have. I guess my first question is more important, because if they do end up writing a stipend check that’ll make me feel a lot better about spending scholarship money.</p>
<p>So let me get this straight. You are basically getting a full ride to the school of your choice and are now trying to rationalize and examine the ethical and moral sides as to how you can get MORE than a full ride.</p>
<p>Is any of the aid from the school in the form of loans? If so, most schools will use any outside scholarships that you report to reduce the amount of loans.</p>
<p>greg, I think you confused us with the second paragraph of your first post, which implies that you received a $40K scholarship and that fully met the COA. Now it sounds like you have both unmet need and loans! This changes the scenario. Have you actually asked your school what their policy is on outside scholarships? Many, if not most, will apply them to self-help amounts (unmet need, loans, work study) before reducing institutional aid. The reason they all want to know about outside scholarships is to track your FA and make sure it’s not exceeding their total COA (at which point they would have to reduce one or more parts of your award, as this is not allowed).</p>
<p>When you’re looking at the “unbillable” portions of COA, remember that they generally estimate on the high side (although travel may be low here, depending on your distance and method of transportation). Books, for example, can be bought used, online, for a fraction of that price. Personal and travel expenses are highly variable and most kids use their paychecks to cover personal items (supplies, snacks, haircuts, entertainment, etc.). Budget carefully, don’t overuse credit cards, and this shouldn’t be a problem. Orientation fees (if that’s what the $438 is) are usually added to the first semester bill. If so, you’ll have a balance due are\ound $400. If not, you’ll have a very small refund coming after school starts.</p>
<p>Anyway, the advice on the reporting issue remains the same. If you’re required to report them, then just do it!</p>
<p>The OP raises an interesting question: what is a “scholarship” (or “outside award”) for purposes of financial aid, if not specifically defined in the contract? If your neighbor writes you a check as a friendly donation toward your college expenses, and if he writes “Friendly Neighbor Scholarship Fund” on the check, it that a scholarship, a gift, or income? What if the check is made out to the student’s parents? This has tax implications as well, and the IRS may have its own definitions.</p>
<p>A payment that is made through the college is clearly a scholarship.</p>
<p>A payment that is made to the applicant without informing any college or constraining applicant’s use of the funds (it doesn’t have to be spent on tuition, it need not be refunded if applicant drops out) seems like income that the applicant earned through the work of applying for the funds. If there is no application, it seems to be a gift. </p>
<p>(Allowing the university to decide, sidesteps the question.)</p>
<p>The simple fact of the matter is that the school’s award of grant and loan is based on the student’s financial need. If another person or entity gives the student money, then by that definition, the student no longer “needs” it from the school. The school gets to define the need.</p>
<p>If I want to buy something for $10 and I have $1, my “need” is $9. But if someone else gives me $5, then my “need” right now is only $4. Why would you assume that it’s correct for the school to still give me $9 based on my previous “need”? And yes, parental contribution and student contribution are considered when determining need; I don’t get to keep my $1.</p>
<p>Another way to affect what portion of the outside scholarship you can keep is to request an increase in your COA. Most schools have a list of specific expenses- 1st year computer, actual travel costs, etc.</p>
<p>If a student had a university stated COA of $50k and $50k in grants and received a $2500 community grant, they could ask that the cost of the computer be added to the COA and for some schools that would mean no reduction in school grant aid</p>
<p>That’s a very good idea, somemom. D was just notified of some scholarship awards today, so thanks for that!</p>
<p>Siserune, quite clearly the application process for a scholarship/award would rule out the “gift” scenario. It’s not that difficult a concept, unless you’re looking for loopholes. The college does not require reporting of graduation gifts, etc. which can add up to a signifcant amount of money. If anyone gave my child a check for an “award” or “scholarship” I’d assume it was reportable. And yes, the school does get to make the determination because, after all, it’s their money. To risk it over semantics seems extremely foolish to me.</p>
<p>That’s exactly what I said earlier. A gift is where no application occurs. However, there is the question of what is income and what is scholarship. </p>
<p>
</p>
<p>That’s pretty patronizing. There’s nothing questionable or loophole-seeking in a student trying to optimize his financial aid within the contract that was signed. The universities are sophisticated counterparties and have “loopholes” of their own, such as giving more financial aid to first-year matriculants and less to captive seniors. Where there is latitude in interpreting the contract there is no reason why the student should opt for the version that most favors the university at the expense of his own interests.</p>
<p>I would say that the possibility of losing all grant money would be a pretty good reason. Scholarship awards are generally not income unless they come with a W-2. I don’t think that awarding freshman scholarships constitutes a “loophole”, it’s simply part of the college’s strategic plan to entice whatever type of student they’re looking for to attend. If that student doesn’t fit the bill in later years, by not meeting gpa requirements for example, the school redistributes that aid elsewhere. I’m sorry if you think this is patronizing in some way, but that’s just the way the world works…not utopia, but real.</p>