When do you repay money granted through a scholarship?

With the costs of attending college rising exponentially, many students are concerned about when to repay money granted through scholarships and student loans. The current outstanding student debt balance for students has risen to a whopping $1.75 trillion dollars.

More than 50% of students at both private and public institutions seek further support to fund their education expenses. When it comes to paying tuition, students rely on federal student loans, federal financial aid, their college's financial aid office, pell grants, and scholarships. You can learn more about the student loan crisis in this overview.

Each of these external resources differs in what financial situation they leave you in upon graduating college. Amongst them, scholarships and grant money are sought out the most because they are considered "free money" that you do not have to pay back.

Scholarships are a source of funding for undergraduate students to pay for college. This money is typically awarded based on merit or need-based assistance. Scholarships are funded by donors who aim to provide qualifying students an opportunity to receive aid without it costing an arm and a leg to attend.

These donations are intended to lower average student loan debt and simultaneously give deserving students a chance to pursue higher education. For many families, it is unaffordable to even qualify for thousands of dollars worth of student loan debt. Need-Based scholarships are intended to bridge the educational gap by giving more opportunities to low-income students who have limited avenues to turn.

There are many organizations that offer scholarships so there are endless opportunities to find one that caters to your needs. The amount awarded varies based on the scholarship as they can range from hundreds to tens of dollars. Undergraduate students are encouraged to apply to as many opportunities as they qualify for. With the total value of annually awarded scholarships nearing 1.7 billion, some students leave college completely debt free!

To be one of these students, you can take advantage of scholarship providers like Bold.org, the largest independent scholarship platform in the country! To begin applying for the hundreds of exclusive scholarships offered on Bold.org, sign up today!

Bold.org is an excellent resource for finding and applying for new scholarships. The platform makes it easier to search for opportunities that are unique to you. Utilizing these resources makes you one step closer to attending college debt free since these scholarships don't have to be repaid.

If you have won a scholarship - the good news is you do not have to pay it back. That money is now one less penny borrowed.

Do I have to pay back scholarship money if I drop out?

Although college is a popular decision amongst students, it may not be for everyone. In fact, 32.9% of undergraduates do not complete their bachelor's degree program. However, a student's enrollment status or lack thereof can impact awarded scholarship money.

Upon accepting any sort of gift aid, the recipient agrees to adhere to any policies that come with receiving the scholarship money. Scholarship providers have an underlying expectation that the money awarded will be spent towards your education during the allocated time frame. Failure to comply with these rules can disrupt your financial assistance.

When a student drops out of college, the entire amount of their scholarship is no longer fulfilling what was promised in the fine print. In other words, the student did not fulfill their end of the bargain and the free money will be voided.

Most scholarships require students to pay this money back at full cost after withdrawing from college. There may be exceptions to this rule and for valid reasons, scholarship providers might grace some fees.

Time can also play a big factor in reimbursing scholarships. If you drop out within the semester, you might be responsible for paying the remainder of those semester fees out of pocket instead of the whole school year. Whereas, if you leave in between school years you might not have to go through the hassle of paying anything back and can refuse the award before it is used.

When faced with this situation, contact your scholarship provider to find the best solution for you.

In other cases, you may have leftover scholarship money. It's always a good idea to discuss expectations with your provider, but you can start learning about what to do with extra scholarship money in this guide.

How does scholarship money work?

If you are new to applying for scholarships, understanding how they work can be a little daunting. While no two scholarships are exactly the same, the general process should be similar and relatively easy for students to manage.

Once the recipient is qualified, the scholarship money awarded will then be used to pay for their tuition fees, room and board, and any other expenses. These funds are sent directly to the student's respective institution. Students do not have to interact or allocate the scholarship money themselves.

Students may receive this money all at once or in increments throughout the school year. Either way, this money will be deducted from their total bill payment through the school.

Although less common, some scholarships will send the awarded money straight to the student. In these cases, it is usually up to the student to distribute it.

How do you claim scholarship money?

Through Bold.org, scholarship winners will be notified and asked for proof of enrollment status at their respective institutions. This can include a transcript, acceptance letter, or anything else that confirms that the candidate maintains qualifications.

After this confirmation, the money will be sent directly to the college's financial aid office - not the student. Therefore, it will be automatically dealt with through the school.

Other organizations might uphold different procedures for claiming their aid. For example, you might have to pay taxes on others if the free money is considered to be extra income, which may be the case if you receive the money directly and use it for non-educational costs. Reach out to your provider to see what you have to do moving forward upon being awarded the scholarship.

Do scholarships cover all four years?

When looking at the amount of gift aid, scholarships come in a wide variety. They can range from a couple hundred to a couple thousand.

Full-ride scholarships are offered to a select number of college students. These are the most lucrative and sought-after financial aid awards because they pay for a student's entire undergraduate program. They cover all four years of tuition, room and board, and other expenses included in the institution. These are usually given out based on financial need, or athletic, artistic, and/or academic capabilities. You can learn more about full-ride scholarships in this guide!

However, full-ride scholarships are not representative of all scholarships. Others may not be as large in magnitude, but students can still cover all four years of college by applying for multiple smaller ones. In addition to these scholarships, a full-time student can opt to be a part of the work-study program to further help their financial need.

Bold.org is always uploading new opportunities for students. It is a great resource that can help students demonstrating exceptional financial needs pay for their education.

How long does my scholarship last?

Most scholarships have an expiration date, meaning they are not intended for unlimited use. That date can last throughout your entire post-secondary career or expire much sooner.

Scholarships are usually only awarded once, but some providers will allow past recipients to apply again for a consecutive school year.

In other particular cases, if students uphold certain GPA requirements, course load, or test scores their scholarship money can be renewed each year.

Every scholarship comes with its own individual policies, so keep an open mind when applying. Always reach out to the organization if you ever need to clarify a certain timeline.

To start earning funding today, apply to the diverse list of scholarships offered on Bold.org so you can fund your degree!