<p>Let us say that you have fully funded your child’s college in a 529 plan. There are other siblings who also have their own 529 plan. Although there is enough in each to pay for 4 years at a private if they get some merit ( ie, could pay 30,000 a year from 529). There is not enough in the 529 to pay for law school, med school, grad school, etc. ( But who knows if they will apply.)</p>
<p>Now, the church has scholarships that they give out. The school that is my son’s first choice matches church scholarships. So if he gets 500, the school gives 500. If it is 1,000 then the school gives 1,000. ( That is the limit.) My son has been very involved in the youth group from the beginning. At the same time, I wonder if we should “take” the money from someone more needy… That said, the senior class next year is small as in 5 of them. Only 2 are REALLY involved. The other 3 show up if it is a fun activity… In past years, they have given 10 or more scholarships. An elderly member left enough in trust to fund them well… So… is it weird to apply for this??? I want to be frugal with money. We are savers and bargain hunters. On the other hand, if someone is truly needy, I don’t want to take it from them…</p>
<p>Not weird. The scholarship is available and anyone can apply. Why shouldn’t they? If there is a need component to the scholarship your children will just not get it.</p>
<p>Right now your plan will work if your kids all get “some merit” from their colleges. What if they don’t? $1000 will buy a semester’s worth of books so it is nothing to sneeze at.</p>
<p>I think I understand where you are coming from. From a Christian (I’m guessing) perspective you don’t want to take from someone less fortunate. Here is what I would do. I would at least look at the church scholarship application. The scholarship committee may well consider “need” in the selection process, but it is also possible that the person who left the endowment wanted to reward academic sucess and hard work. Without knowing the person, it would be difficult to know their motivation for setting up the scholarship in the first place. If there are only a few students for the church to consider this year, it doesn’t sound like you would be taking money from a more needy person, anyway. (I’m assuming this scholarship is only open to regularly attending church members)? If the money is in trust for a scholarship, the church can not spend it on anything else, so you might as well apply for it. You’ve planned well for the future, but something could still change; we don’t know where tuition will be in a few years, and you might still fall short. As far as the college is concerned, they are apparently able to cover the cost of the “match” no matter how many they have to give out. You might as well apply for it, then if you discover that you really can’t accept it, you can always decline it or just donate the money back to the church scholarship fund.</p>
<p>Yes…that i exactly it. Plus, I think they will think, your dad is a ________, why are you applying for a scholarship??</p>
<p>I mean, the truth is, the 529 is what we have saved but we could pay for the cost of attendance out of current salary without touching the 529. We have consistently lived below our means. When we both worked my entire salary went into savings. (Of course we had no kids then (5 years). Now we give away 1/3 and save 1/3.</p>
<p>I don’t think its weird at all. Many of the local scholarships that my kids applied for had need componets and as part of the scholarship application they would ask for your efc or even a copy of our 1040. So if they structered the scholarship with need in mind they will ask those question. If they don’t ask then it means it was not set up to factor in need.</p>
<p>Any time you take a scholarship, it is possible that you are “taking it” from someone who needs it more. You are just more personally invested in these scholarships. However, many scholarships that I’ve seen will not permit those who are closely affiliated with them apply in order to keep the bias out of it. If that is not the case with these, then go right on ahead and have your student apply.</p>
<p>If your church offers up to 10 scholarships a year and there are only 2 kids that are really involved, it would almost be rude NOt to apply for the scholarship. The donor who gave this money wants to reward kids like your son who is involved and active. Just because you have other money doesn’t mean your son isn’t deserving - unless of course they are looking at need instead of only merit. Merit scholarships, which it sounds like this is, is designed for kids who work hardest, not are the poorest. You have lived beneath your means for years and it sounds as if your son is a very giving person. Perhaps if he is awarded the scholarship he can use it in college to help others in some way if he feels he has all of his expenses covered otherwise. Or use it for books or other expenses, which really seem to add up.</p>
<p>Have your kid apply for the scholarship. If it’s based on merit rather than need, then there is absolutely no reason to feel uncomfortable - he deserves it more than most of the others. If it’s based on need, then the committee can simply turn him down.</p>
<p>There’s a scholarship fund available in our area to any kid from our denomination. This year I have five members applying for it and as their pastor I have to write recommendations for them. One of the students is my daughter. I’m not about to tell her not to apply because she’s competing against other members of the church. Then again, she meet the requirements better than the others do.</p>