A scholarship is financial support awarded to a student on a specific basis, usually academic merit. Scholarship funds, unlike student loans, do not have to be repaid and are an excellent approach to helping students complete their education, usually a university education.
Scholarships are funds that relieve students (prospective and already enrolled) and their families, an essential part of the economic obligations of universities. Scholarships are awarded by different organizations and agencies for undergraduate and postgraduate studies at colleges, institutes, and universities.
This brings us to the question: Can Scholarship Money Be Used For Anything?
Scholarship can cover various expenses typically associated with higher education, from lab fees to books, room and board, transportation, tuition, and more. A scholarship is sometimes a lump sum payment. Other scholarships are renewable, with funds being awarded to students each academic year or semester.
Sometimes, the scholarship money will be in the student’s name and paid directly to the student. In other cases, the money goes to the student’s institution or school. In these cases, the student pays the institution for the discrepancy ON amounts due for tuition, room, board, and other fees.
Suppose the scholarships and other financial aid are sufficient to cover the direct costs of university studies, in this case, the excess amount is reimbursed to the student.
What Can I Do With Scholarship Money
When you receive the scholarship fund depends on the kind of scholarship secured. Sometimes you will receive the grant in one sum before school starts. In other cases, the fund is paid out in installments. And sometimes, scholarship funds can be given out mid-semester.
You can spend scholarship checks made out to you on just about anything, but you should think of it as an asset and not a license for concert tickets, makeup, or video games.
The fund is intended to cover the school costs. This can be tuition fees, housing, books, food (you must be healthy and alert to study), or required resources such as computers or software.
Of course, how you acquired your scholarship fund affects your decisions about its use. While most major scholarship funds are paid directly to your institution, certain scholarship funds may be awarded directly to you.
I mentioned earlier that your institution could also refund you for unused scholarship funds.
If you receive the scholarship directly, follow all the rules on how you can and how you cannot use this money.
Suppose you are unsure how to use the money. In that case, you can check with your scholarship office how you will use the scholarship fund and what expenses the scholarship fund can cover.
Below are some examples:
1. Tuition
This course attendance fee ranges from 20% to 40% of a higher institution’s total budget for a year of study.
Most scholarship funds can be used for tuition and other higher institution-related expenses.
This is an essential fee for a student in higher-institution and is partially or fully covered by most scholarships.
2. Books and other course materials
A substantial amount of money is needed to purchase books and other course materials required for study at a higher institution, be it at the bachelor’s or master’s level.
Scholarship funds may be spent on books and other materials. Several scholarships cover the cost of books in particular.
3. Room and board
Students who attend the higher institution and live in an apartment or dorm will undoubtedly have room and board costs.
Several scholarships cover the cost of room and board. Your scholarship documents contain the necessary information as to whether your scholarship includes accommodation.
If you cannot locate this information, don’t hesitate to contact the scholarship provider directly and ask if your scholarship covers room and board.
4. Lab and research fees
Scholarships for physics and applied sciences students can specifically cover the costs of their research and laboratory fees. This is often the case in postgraduate courses that involve extensive and potentially costly research.
Scholarships can also finance specific research projects through fellowships and grants.
5. Living expenses
Additional costs associated with attending higher institutions may include health care and insurance, technology, and transportation.
Transport can include airfare and local transport fares such as bus tickets if you are studying abroad.
Scholarships earmarked for living expenses can cover these expenses. Still, it’s essential to understand the type of living expenses your scholarship funds will provide before you spend them.
Also, Read: How Scholarship Helps Students
What Happens To My Scholarship If I Graduate Early?
Many scholarships are linked to enrollment in a degree program or a certain number of academic achievements.
This means that no further scholarship funds will be awarded after graduation in the event of early completion.
For instance, New Mexico university offers general scholarships that demand an individual to be a current pupil and be enrolled in at least twelve credits per semester.
These requirements are relatively consistent across scholarships granted directly by universities. Funding will be discontinued if a student graduates early and no longer meets these requirements.
The institution uses unallocated scholarships to fund students who meet the scholarship eligibility requirements.
Can You Use Scholarship Money For Student Loans
If you are endeavoring to pay off your student loans, you should explore all options.
Some students wonder if they can settle their loans with scholarships. For example, if you received a scholarship in your junior year, can you use it to pay off a student loan in your first year?
The answer to this question is a little bit tricky.
Sometimes You Can Use Scholarships For Student Loan Settlement
Unfortunately, not all scholarships can be used to settle student loans. Most scholarships are designed to help cover your college expenses, primarily tuition.
Sometimes, they are sent directly to your college, not you. When they send you the money, the scholarship provider will usually tell you what you can and can’t use it for.
When it comes to student loans, most won’t let you cash those payments. Nonetheless, it doesn’t hurt to question the scholarship provider.
Fortunately, there are scholarships specifically designed to help pay off student loan debt, including some open to students who have already graduated. They can be hard to find, but current and past examples include the $10,000 #PayMyStudentLoans contest by MoneySolvers, fab aid, and Swipe Away $10k Sweepstakes.
In some circumstances, scholarships can also be used for other college expenditures such as Living expenses, rent, room and board, books, and a computer.
It is essential to only use the money for what the provider says. Suppose the scholarship provider investigates and finds that the money was spent on something else. In that case, they may withdraw the award, and you will have to pay it back.
Other Ways You Can Reduce Student Loan Debt
Other avenues are available if you’re not winning scholarships that pay off student loans. You might want to put these avenues into consideration.
1. Repayment Programs
There are several programs, both government-sponsored and non-government-sponsored, that can help you pay off your student loans.
However, it is essential to note that these have particular requirements that you must meet. They can require you to work in a specific field or job for a specific number of years. You may need to do research in an industry, be a military veteran, or have some debt load.
You may also need a combination of these and other requirements. Some only pay up to a certain amount.
2. Taking Advantage Of Refinancing Options
Federal student loans cannot be refinanced through the government (they can only be consolidated), but you may consider refinancing through private lenders.
They may be able to offer you lower interest rates or different payment terms. You may be able to consolidate them with the private loans you have.
It’s important to review your options to ensure you’re choosing the best solution.
Also, Read: Top 13 Scholarships That Gives The Most Money
Things Scholarship Funds Can’t Be Used For
Regardless of the amount of scholarship funds you are awarded, each scholarship describes precisely what the money can be used for. You have to understand these regulations.
Please read the details of your scholarship carefully. Even if your scholarship covers living expenses, the award indicates the type of personal expenses allowed, such as, E.g., food or travel.
Also, Read: Are Scholarships Taxable?