Do I have to report scholarships to the University 🎓? Will they reduce my pell grants?
I won a few beauty contests and they awarded a cash prize. Do such prizes count as “outside scholarships” and potentially reduce my pell grant and need bases institutional financial aid eligibility.
I won 500 dollars from the Mr and Miss Ireland pageant at a local pub.
I won 2500 dollars from a Mr and Miss 2020 beauty contest last New Years.
I won 1000 dollars in a bikini contest during spring break.
Those were paid out to me as COLD 🥶 CASH 💰.
I also won a “Miss County Fair” scholarship pagent” at the county fair which awarded a $1000 scholarship that will be paid to my college.
How do these awards impact my financial aid? Does the cash prizes count as income and have to be included as student income? Will that raise my EFC?
Will they subtract the scholarship pagent money from my financial aid that’s need based?
How does this work?
- Spock (rhp)Lv 71 month ago
they are taxable income [self-employment type] to be reported on FAFSA in next filing after they are received. You are assumed to save the after tax amounts and yes, they likely will reduce your future financial aid ... after all, aid is for those who NEED the help, not for those who have outside resources that can be used to pay their college expenses. Failure to report this amounts to fraud on the application ... the penalties might include requiring you to repay aid received on zero notice, and/or cancelling your eligibility for future years [plus you have to file these on your income taxes for the year in which received -- self-employment income and related taxes].
- MSLv 71 month ago
Most of those are not scholarships. They are prize money. Scholarships are paid directly to the university and are not reported on your FAFSA, which is what determines your EFC, so it should not be significantly affected by those. But your income is reported on FAFSA, so the prize money could affect it in that way.
- A.J.Lv 71 month ago
They're taxable income. If specifically tagged to college, they're still income, but if asked on forms then lying is fraud.