What can scholarships be used for?

[ucbalumnus]

If you mean outside scholarships, see

Outside Scholarships

@University of Pennsylvania

We will apply your outside scholarship funding to your package to reduce or replace some of the funds that you as a student are expected to contribute or earn. We will first apply the outside scholarship funds to reduce or eliminate the “summer savings” component of your financial aid package, which is reflected in your Student Contribution. If necessary, we will then reduce or eliminate the work study allotment you would be expected to earn throughout the year.

If your outside scholarship is larger than the combined value of your summer savings expectation and your work-study allotment, the remaining amount will replace university grant funding. Outside scholarship funding cannot be used to reduce your Parent Contribution.

In other words, the outside scholarship can replace your student contribution (the work earnings that they expect you to be able to contribute).