<p>So if my college finds that I am getting a scholarship from an outside organization they reduce the school grant and subsidized loans, but NOT the parent plus loans and unsubsidized loans. I really find it ridiculous, because I feel like the scholarships aren't really helping me out.</p>
<p>I guess my question is do scholarships HAVE to be sent to the university, and not me? and why is that? is there like some tax return that these outside scholarship orgs get for sending the money to my college?</p>
<p>You have to report the scholarship to the school, because they have a right to know if your amount of need changes. Some scholarships are given directly to you and some are put in the schools name. As for the tax, I have no idea what you’re asking. The people who create the funds probably do get a tax exemption if that’s what you’re asking for. But not if they give the funds to your school.</p>
<p>The way I think about it is - if it is truly a scholarship and it is intended to be used for college, then you must notify the college. If perhaps though your high school had an awards night and you won an award for highest average in math or whatever and it came with a small monetary award made out to you and it has no restrictions on how you would spend the money, then I don’t feel you are obligated to tell the school.</p>