There is most likely some logic in the FAFSA that expects certain amounts. Because it’s not typical for someone to have such a high amount of taxable scholarships, the amount may trigger an “are you sure?” comment. As long as the correct amount is entered, you can safely ignore any warnings. Of course, the correct amount must be entered. By the way, the higher the amount, the lower the EFC. The formula backs out the taxable scholarships from student income.
1 Like