@mountainmomof3 - All the scholarships will just add up, and anything left over after your son’s bills get paid will just be refunded to him. My son was awarded several additional scholarships during his tenure—some from outside sources and some from UA—and anything in excess of his bills was just refunded.
Make no mistake, though, the taxes on the excess scholarship monies—anything not applied to tuition, books, supplies—can be significant, so be prepared for that. But is it worth it to get the extra money? Heck, yeah!!!
P.S. Remember, the American Opportunity Credit (AOC) is your friend, and you can still claim it even if your student’s expenses are fully covered by scholarships. There’s been discussion of this in the Financial Aid forum. In a nutshell, what you need to do is move $4,000 in expenses from the “tax-free” (tuition) column to the “taxable” (other expenses) column. The IRA won’t complain that you want to pay the additional tax . . . and paying that tax qualifies the $4,000 as money that YOU spent, making you eligible for the AOC. Consult the Financial Aid forum for more info.