Is it necessary to report excess scholarship funds?

Paying for College
1

<p>I’m going to be attending UCLA in the fall, and their financial aid package consists of $2500 in work-study and $5000 in loans; this results in a total out-of-pocket expense of $7500. </p>

<p>I’ve received a local $40000 scholarship, paid out in $10000 increments per year. If I apply this scholarship to UCLA, I will have about $2500 left over. However, if I report this scholarship to UCLA (due to their outside scholarship reporting policy), UCLA will “take” my excess $2500 and use it to reduce the amount of grant aid awarded to me. </p>

<p>The scholarship is made directly in my name, through a check that will be sent to me every year. Given this situation, would it be wise to not report this scholarship to UCLA, so I can keep the excess award amount? I am planning to save up the excess, as that money will be most useful when I have to pay for my planned graduate school fees. Thanks for any advice given.</p>

2

<p>What happens is with outside scholarships is that most schools reduce your self hep portion first (loans, work study) before reducing their grant aid.</p>

<p>

</p>

<p>Yes you must report your outside scholarships because the grantor of the scholarship is going to report to the IRS that they have given you one so it will eventually come out. In addition, to not report the money constitutes fraud and you could end up not receiving any more FA and repaying all that you have been given including fines and penalties.</p>

3

<p>hey jinobi what scholarship is this (the $10,000 one). pm me if you don’t want to disclose it online (assuming you wanna tell me =P)</p>