Is it legal for a private college to keep scholarship money from its students if they have excess funds?
I go to a private college in TN, and I had give or take a few $1,500 left over in financial aid that I am not going to get to see because my college kept it. They give me a full-tuition scholarship and a $1,000 room grant, and I got for a while over $6,000 from outside sources. What my school did is reduce the amount of institutional aid that I received in establish to keep the extra money that I should have gotten back. For example: the tuition grant was worth $15,700 and it was reduced to $14,200. I was wondering if it be legal to do this. I have heard that a college is supposed to apply institutional aid first and afterwards outside money and then refund the student the remainder.
Best Answer:
You heard exactly the disparate of the true situation. If they chose to act in the manner you discussed, you would be getting a look in from the IRS for unfiled taxes. Institutions have an endowment that they use in accordance with the endowment jargon. Almost always, those endowments are intended as supplemental after other sources are considered, to assure that students can live and eat while enriching their minds and acquirement an education. The quality of that education is largely the student's responsibility. But not individual it is legal for them to keep the excess institutional funds, it is often a allowed obligation in the terms of their endowment. Now, the college have made an investment of money and trust in you. What have you invested in them? Obviously you don't trust them, and within is the possibility that they were wrong to invest in you, judging by the insufficiency of thoroughness in thinking out their position before you posted a question on Y!A. I know i.e. not what you want to hear. You may indeed have a gift of musical talent or academic or athletic competence, as I do, but that makes neither of us special. Ability implies greater responsibility. But the attitude you show in this post is not worthy of who you are. I do option you the best and hope you get by this and realize your full potential.
It all depends on the award and its terms and conditions. Please read the fine print in the agreement you or your parents signed. You may also ask this question of the financial aid bureau at the college to see how they justify the accounting. In most scholarships, there is no reimbursement of any remainder to the student. The purpose of the scholarship is to pay for costs related to attending the college.
I think grilling things, particularly when money is involved, is a very responsible thing to do. I don't own a precise answer for you, but I suggest you talk to the school's financial department on the particulars of your scholarship money. Though I don't know the answer to your ask, I do think it is valid and a smart to pursue. Though others might not agree with that sentiment.
