Valedictorian scholarship?

Hello! Ranks have been finalized at my school and I recently found out I am valedictorian! (After going head to head with another girl for four years!) I just wanted to know if there are any perks that come with the title? Also I wanted to know if it is true valedictorians get one year free, as I’ve heard many rumors that this is no longer happening. Thank you!

It’s one year free tuition and it is for the student who is ranked #1 even if that student is not designated valedictorian.

@JAMCAFE So it is true? I’ve read rumors that there is not enough funding but I must have been reading something else. Thanks for the information!

I got that scholarship in 1980. It was worth about $120 back then (30 hours times $4/credit hour). The fees were higher than that!

@MaineLonghorn I remember being appalled that our valedictorian passed hers up to go OOS. It seemed like a lot of money to me back in the late 80s. My have things changed.

Some people were surprised that I picked UT over MIT, etc. I said, “Why pay a lot more when one of the top ranked engineering schools in the country is in my backyard and affordable??” UT was the only school I applied to. And I loved it.

Yes, the Highest Ranking Graduate Scholarship is for real. The one that’s not usually funded is actually the top 10 percent scholarship. The Highest Ranking Graduate scholarship IS funded and does get the first year free at any Texas public college. My two graduates both graduated from a small public charter school as the Highest Ranking Graduate and both went to UT Austin in 2011 and 2015 and claimed this award. They had to turn in the award certificate in person at UT to claim the tuition exemption.

Congratulations @PeachyKhaleesi!

You may want to check with your high school college counselor to be sure your high school has the proper documentation to submit to UT…a friend’s daughter almost had her classes canceled because our high school had not submitted the right paperwork…it all worked out great, just stress and lot of scrambling the day before classes started!

@RedHeadedMommy Aw Thanks! My school has an award ceremony where the valedictorian is handed a framed certificate. Would that be the documentation?

@collegefind Would I still be able to receive my financial aid award? Also thanks for the info!

@PeachyKhaleesi - here is a link to the information:

http://tea.texas.gov/HRG/

There are specific documents & forms that need to be filled out.

With regard to how it will affect your financial aid- I would call & talk with them about the award and they will be able to tell you if it will be a problem.

Congrats!

Congrats, @PeachyKhaleesi !

Question: Do you (or anyone else on this board) know whether recipients of the valedictorian scholarship are eligible the $2500 American Opportunity Credit (AOC, https://www.irs.gov/publications/p970/ch02.html#en_US_2016_publink1000204341), even though their tuition is covered as a freshman?

My daughter is on track to be the highest ranking graduate at her Texas high school, graduating this year. She’s interested in UT Austin. If she doesn’t have to pay tuition for her freshman year, would she still be eligible for the AOC to help offset room and board expenses?

To qualify for the AOC, we would need to report “qualified” expenses (tuition, not room and board). But according to Example 3 under the “Coordination with Pell grants and other scholarships” section of the IRS publication above, the IRS will pay out the AOC if the student applies $4000 of the tuition scholarship to room & board and then treats that $4000 as taxable income. But a caveat in the IRS publication is that “the scholarship or fellowship grant must be one that may (by its terms) be used for nonqualified expenses.”

So my question is: Can the Texas valedictorian scholarship (by its terms) be used for nonqualified expenses like room and board? My son who’s going to Rice is in a similar situation, and we’ve been able to shift the scholarship to pay for room and board to then claim the $2500 annual AOC, but I’m not sure what UT’s stance on this would be.

The answer to this question affects how much I choose to have withheld from my paychecks for taxes this year. If we’re not eligible for the AOC because UT mandates that the valedictorian scholarship cannot be deemed as applying to room and board, then I’ll need to withhold more from my paychecks than I’m currently withholding.

@RiceUSNADad - the Highest Ranking Grad is only applied to tuition. Shortly after the tuition bill appears on their portal it is zeroed out with a Less Exemption/Waiver taking care of the balance.

There is a form that the graduating High School will complete online that UT will use to verify the award. There was a very nice lady in financial aid that explained the process last fall.

So- no, it can’t be used for housing. My DS did receive other awards that were applied to his housing bill. Any excess they will send to a bank account. (Not sure if that helps…)