<p>Seeing that my EFC is extremely low and I've received more money in scholarships than I have use for, what can I do? I don't want to <em>waste</em> the money by just giving it to my college- they dont' really have much need for it. But if I don't give the money, what can I do? Report it on my tax return the next year? Will it go as assets the next year, or will I have to spend all the money by then? Some scholarships aren't specifically requiring me to use it for tuition, but if I don't, do I still have to include these scholarships on the "Outside Scholarships" form that I submit to my college at the end of the summer? Quite confused...</p>
<p>You might want to repost this on the Parent's Forum and also do a search for "taxguy". He recently started a thread that included information about the tax implications of scholarships.</p>
<p>Yes, you will have to include it on your tax return to the extent the law requires, something that Taxguy explains in detail on the Parents Forum. And if you bank it, you will be required to use 35% of it for next year's tuition. Congratulations on such a windfall. I suggest you use what you can, say on a computer, if you can use one, travel, and visits for your family and the rest for next year. You may not get as much the second year, particularly if they are one year outside awards.</p>
<p>You have to report everything on your taxes that you don't use for tuition. My suggestion would be that you do give all the money to your school as most places with allow you to overpay and then they carry the balance over between semesters and school years. When you graduate you can request a refund of whatever extra money is there. (I did it this way and am set to graduate next week...my parents haven't had to pay a dime for the last six months since I just carried things over every year.)
Scholarships are usually dispersed two ways: either to you or to the school. If they are dispursed to you then you should/could use them for books and the like, trips home, etc. Regardless, you'll have to report them. If you choose to do this with these scholarships you don't have to report them to your school. When you report them the school automatically expect that you give the money directly to them.</p>
<p>Ok, thanks. I'll be sure to read taxguy's post, too.</p>
<p>surburbian, You are so lucky. Was most of the money from outside scholarships or from harvard?</p>
<p>Surburbian</p>
<p>Btw, how much did you get in outside scholarships?</p>
<p>Umm, it's mostly that my EFC is really low, not that I've received an inordinate amount of money. </p>
<p>It's been confirmed that I got at least 7,000. There are a few more local ones that I'm definitely sure I will get (few applied, several scholarships available for those few people, so... yeah pretty much guaranteed). I'm expecting at least 10,000 but if I get lucky and win a few more national ones, it might be closer to 20,000.</p>
<p>Edit: To answer the other question, most of the money was from Harvard (need-based).</p>
<p>And also, to make some people (perhaps juniors) feel better about possibly attending a college that costs 40,000 a year: Harvard students, on average, get 10,000 dollars a year in outside scholarships, and I'm pretty sure it applies to a lot of schools that you people on CC are considering.</p>
<p>suburbian: don't you have to report the scholarships to your school and then have your grants reduced accordingly? I know that hardly seems fair, but isn't that generally the policy?</p>
<p>Suburbian,</p>
<p>First of all congrats on getting ourside scholarships. </p>
<p>First deal with the facts (don't count your chickens before they hatch or monies until you get the check in your hand).</p>
<p>You got $7,000 in outside scholarships.</p>
<p>You have to report all outside scholarships to your school. If you are attending Harvard, what they will do is first reduce your self help aid (work-study, loans). </p>
<p>Then they will reduce their aid (grant aid). I don't think that Harvard is going to let you make money on the deal. so if you get $20,000 in outside scholarships, they will reduce their aid acordingly.</p>
<p>Harvard states on their website:</p>
<p>**We adjust individual financial aid packages to accommodate significant changes in a family's financial situation. Students apply for financial assistance each year. **</p>
<p>Outside scholarships will definitely change your financial situation.</p>
<p>Most of the time your EFC will not be reduced because you got outside scholarships. You need to ask your financial aid office how they handle the EFC when you get outside scholarships. They may let you apply the out side scholarship to your student contribution of the EFC, but it is not a given.</p>
<p>As you have already been told there is a tax implication involved with outside scholarships and even school scholarhsips above the cost of tuition as it is considered taxable income.</p>
<p>What do you mean your college doesn't need it? This shows a pretty big lack of understanding of what your education will really cost the school. </p>
<p>You are fortunate to be in this position, do the honest thing and let the school decide where the funds go.</p>
<p>I sort of agree with zagat. I'm in the same situation, only on a lesser scale. I'm going to Amherst, and I'm low income, so I didn't have any loans from them. I was awarded a couple outside scholarships totaling around $2500, which will first eliminate my work study, then take away from the Amherst scholarship. I did quit applying for scholarships and didn't appy for any local ones since obviously someone else will need them more than I will, but for the extra money I already have--I figure Amherst is giving me a really good deal, it would be nice for me to do what I can to cover the costs with other money.</p>
<p>D. might be in the same position, and I know she will not receive as many scholarships next year. I was wondering if anyone has ever written to a local organization that has given a scholarship (like the Ruritans or local VFW) and asked them if they would hold the check until the following school year. . . is that okay? any successes?</p>
<p>"I was wondering if anyone has ever written to a local organization that has given a scholarship (like the Ruritans or local VFW) and asked them if they would hold the check until the following school year. . . is that okay? any successes?"</p>
<p>I was wondering the same thing. It would be very helpful if we could do that.</p>
<p>If most of these scholarships come from non-profit organizations then they cannot hold it over for the next year as they must "spend down" thier excess funds in their current financial year. </p>
<p>This would most likely mean that they would pass the monies on to someone else depending on what time of year they must close their financial books.</p>
<p>sybbie and zagat, </p>
<p>I'm not assuming that I'll get all the scholarships that I applied for. I'm just saying that if, for example, the local PTSA offers 10 different scholarships and only 7 people in my school applied for the PTSA scholarships (This is true, actually.), it is very, very probable that I will get one or two. </p>
<p>Also, I do appreciate the financial package awarded to me by the college. However, Harvard is a college with the nation's largest endowment. A few thousand dollars will hardly matter to them, but it does matter a lot to a four-people family who lives in one of the wealthiest counties in the country but only makes 27,000 a year. </p>
<p>I plan to donate to Harvard in the future, after I have made some money.</p>
<p>But I do appreciate your advice. Thanks.</p>
<p>Suburbian, I realize that many people don't understand that colleges with large endowments are not flush with cash. Harvard has many things they would love to fund with the monies you were so fortunate to have dedicated to you.</p>
<p>A quick read through CC alone will show you how many kids would love to be in the position of just having their EFC met, not to mention those that couldn't even apply to Harvard because they knew their family could not meet their EFC. </p>
<p>It's wonderful that you plan to give later, the giving of those that came before you is what is allowing you to attend Harvard. </p>
<p>But no matter what your family income, need based aid and scholarships are meant to ensure you have the opportunity to attend, not to ensure a cushy 4 years. Many of us happily endured work study and reasonable loans for the privilege of attending a dream school.</p>
<p>If your needs are covered, you might consider withdrawing from scholarship competitions at this point so that those who have not had their needs met have the same opportunity you do.</p>
<p>
[quote]
However, Harvard is a college with the nation's largest endowment. A few thousand dollars will hardly matter to them, but it does matter a lot to a four-people family who lives in one of the wealthiest counties in the country but only makes 27,000 a year.
[/quote]
</p>
<p>Need based financial aid, which is the type of financial aid given by Harvard and similar schools are designed to meet your cost of attendance to attend that school not for you to profit or make money of off the deal. All of Harvard's "endowed monies" are basically, some one else's parents are paying for your education and it was not done with the thought that students would looking to "get over' on the system.</p>
<p>If you continue to receive extra monies, Harvard is just going to reduce your grant aid. </p>
<p>Remember that each year in order to be eligible for continued aid you will have to file a new fafsa in addition to providing the school with copies of your tax statements, w-2's, 1099 forms etc. The school will eventually find out about any additional outside scholarshis that you have been given. </p>
<p>If you don't report your outside scholarships you can risk not only losing your financial aid but being dismissed from school for providing false statements. If that happens what good would you be to your family of 4 or anyone else? You have been given an amazing blessing, don't let a few dollars curse you from getting the $100,000+ you will need to complete your 4 years at Harvard.</p>
<p>In the end you will have to decide if the "few dollars" is worth it to you. Character is who you are when no one else watching.</p>
<p>All the best.</p>
<p>Thanks for the advice. I've asked my guidance counselor about holding off on local scholarships until later, and she said that this is possible. I guess that was what I was really asking for when I started this thread. I was looking for the best, legal ways to make the most of the scholarship money. I did not think that, on this board, I had to explicitly state that I was looking for legal options. Please do not speak about fraud; I was not even contemplating providing false statements or doing any other action that could get me dismissed from school. Sybbie, I understand your concerns, but please do not make me out to be someone who's trying to steal undeserved money from organizations, colleges or students. Even if it was unintentional, please be more careful about making such assumptions. And I will be more careful to state things more clearly so that people understand my true intentions.</p>