<p>Hi, my college gave me grants and scholarships that fully covered my first year. However, I am sure that I will receive few local scholarships. I know I am suppose to report them to FANN. Will they deduct my college aid and replace them with these local scholarships, or my local scholarships become pocket money for me? Thank you.</p>
<p>It depends. Sometimes that College will allow you a one time purchase of a computer for school. Otherwise, the school may first reduce your self help aid (student loans, work study). After your self help aid is exhausted, then the school will reduce their institutional aid.</p>
<p>Keep in mind that your failure to report the outside scholarship could be grounds for losing and/or repaying any institutional aid given to you . it can also be cause from dismissing you from your school (fraud, dishonesty). Also all monies in excess of tuition, mandatory fees and books are considered taxable income and must be reported next year when you apply for financial aid.</p>
<p>Schools handle scholarship money in different ways. Some will deduct/ remove the student loans, workstudy etc before removing the free money. But i must say, i do know peope who have not reported the scholarships especially if they were small amounts 2-3 thousand dollars and bought their computers, supplies, books, etc. im not advocating, but its done.</p>
<p>It can also depend on the nature of those outside scholarships. Are they specifically for tuition & fees? Are they specifically for housing? Are they specifically for books/personal expenses/travel/computer/art materials? Are they available for whatever you’d like to use them for to make your college experience better such as study abroad or a new winter wardrobe for a college in Alaska? Must they be received this year, or can they be received in a later year if/when they would be more useful to you?</p>
<p>As the scholarship money starts to roll in, meet with the people who award it, and find out what options they can give you.</p>
<p>As others have said, it depends. It depends on the school and the type of aid you have received and the scholarships you got. That they are greater than your tuition does not seem to factor into the situation; it’s the official policy of the financial aid department that counts the most. There are people who get far more merit money than the costs of the school and make money off the deal. But certain forms of financial aid does not permit that. It HAS to be reduced by any money that comes into the picture.</p>
<p>Also be aware that if you get money above and beyond what the tuition and materials cost as defined by the IRS Code, they have to be reported and considered for taxes depending on the overall income situation for the student that year.</p>