cricket123

I recently received a scholarship in the amount of $1,000 and the check is in my name.
I was wondering what I should do with the check... Do I cash it? Or deposit it into my bank account? Or give it to my university?
According to the policy of my university, I need to report this scholarship so they can adjust my financial aid package (lower the amounts of loans they have offered me)... Does this change what I need to do with the check?

happymomof1

Congratulations!

Put it in your bank account, then let your university know how much you received so that they can adjust your aid package. When you actually receive your bills for tuition/fees/housing/meals for the fall, if you find that you need that $1000 to help cover the costs, then write a check to the university from your own account. If you don't need to use that money for those expenses, hang on to it and use it for your books.

If the only loans offered were the Federal/Stafford loans, you might find that you prefer to take out the full loan amount anyway so that this scholarship money can be a small cushion for unexpected expenses during the course of the year. Talk that possibility over with your family or other trusted advisors after you notify the university that you have received this scholarship.

romanigypsyeyes

Cricket, you need to ask your U. When I got a scholarship check, I was supposed to send it to my school. Congrats!!

laplatinum

So Cricket is supposed to "notify" the university so he can have his aid package lowered? So-called "need-based aid" is not what YOU need but what the institution THINKS you need. My understanding is that there is a threshold of $$$ before anything would affect aid. Other people's thoughts?

romanigypsyeyes

I believe you're required to report scholarships. I don't know if it's law or university policy, but I've never heard of it being ok to just keep it without notification.

happymomof1

laplatinum -

Everything depends on the specific institution's policy. Some don't care. Others do. The OPs university cares. That's all that matters in this case.

It looks like the university will use the scholarship money to reduce what they are asking the OP to take out in loans. Essentially they are allowing the OP to pay down that "loan" early with the scholarship check.

romani is correct that the OP needs to find out how the university would like to handle things. But unless the check is clearly written out to "cricket123 and University X", or the award letter specifies that the money is only to be used at University X, then cricket123 may prefer to put it into his/her own account for the present.

vonlost

If you give it to the school and the school lowers your aid, the school has more to give someone else who needs it more (they initially gave it to you instead of someone who needs it less).

cricket123

@laplatinum, happymomof1 and vonlost are correct about my university's policy.


Thank you for all the helpful responses!! I will get in touch with my university and most likely deposit my check.

And the loans I was offered were Federal and Stafford which they may lower by 1000 (most likely the PLUS loan will go down first).

dodgersmom

laplatinum - If that's the school's policy, what else would you suggest? Keeping the money and not saying anything? Okay, but then what do you declare on your taxes for this year? If you declare the $1,000, then the school finds out that you received it and didn't notify them. That kind of dishonesty could, at the least, cost you future financial aid and, at worst, get you expelled. So, do you then lie on your taxes also?

In the end, it seems simpler just to do the right thing in the first place.