Ugh! Too much scholarship money?

[barkley]

Not sure how her college handles it, but all scholarship money after tuition is considered income for our daughter. Just something to look into and think about.

it doesn't matter how the college handles it-it's federal tax law.

grants, scholarships, work study and such are taxable income. there are some MANDATORY expenses that can reduce the taxability (mandatory fees and tuition as an example, but dorms only if the college requires students dorm as a condition of attendance) but every student/parent of a student that receives any of this type of income needs to consider the tax implications.

our dd received within a few thousand the total cost of attendance from these types of sources last year-she ended up having to file a return and paying. when we went to do the fafsa this year we had to make sure to put in the proper coding for this situation-otherwise it ends up looking like the student had the type of income that counts against them for future grants, scholarships and work study.

irs has a good publication on this on their website.

 

[disney1990]

I can understand not like "school" food. But, most college have fresh fruit, yogurt, and a salad bar these days. Certainly there is something that you daughter likes to eat available in the cafeteria.

 

[madge]

Thanks! We will definitely be checking into it. And study abroad! I didn't even think of that!! She definitely wants to do that. Thanks so much for mentioning it. I would really hate to just let any money go.

the Office of Financial Aid will/should be the best resource for your daughter -- they can tell her the best way to maximize her award money.

 

[NotUrsula]

Dollars to doughnuts, once you report the income from the scholarship awarded by her father's company, the university will reduce her award by the same amount. That could mean goodbye job. If she really wants the job because of the experience factor, then she may be made to give up something else instead.

Have you spoken to the company re: the award that they give? It seems to me that a private scholarship might be more amenable to changing the distribution of the award amount than a university might be. If nothing else, perhaps they would agree to let her put it into escrow for next year's expenses.

 

[iheartnmr's]

Don't bargain shop the book. Get the proper edition.

 

[gwynne]

Dollars to doughnuts, once you report the income from the scholarship awarded by her father's company, the university will reduce her award by the same amount. That could mean goodbye job. If she really wants the job because of the experience factor, then she may be made to give up something else instead.

Have you spoken to the company re: the award that they give? It seems to me that a private scholarship might be more amenable to changing the distribution of the award amount than a university might be. If nothing else, perhaps they would agree to let her put it into escrow for next year's expenses.

They can and do adjust award packages up and down. The goal is to meet (not exceed) the cost of attendance.

 

[okeydokey]

I will tell her if she were my kids, you have 2 choices, eat on campus or forgo the campus job and get a cash job off campus. Life is about choices sometimes.

Exactly. Our local University has a ton of on campus options for dining.

If she really doesn't need all the scholarship money, maybe she can decline some of it so they can award it to someone else who could actually use it.

 

[LisaR]

Don't bargain shop the book. Get the proper edition.

You do realize it is possible to bargain shop and still get the correct edition, right?

They can and do adjust award packages up and down. The goal is to meet (not exceed) the cost of attendance.

I don't think she would exceed the full cost if we threw in a full meal plan, but we aren't going to do that. We may just pass on the scholarship offered at Dh's work. Sucks that someone wants to give her money and she can't use it.

Exactly. Our local University has a ton of on campus options for dining.

If she really doesn't need all the scholarship money, maybe she can decline some of it so they can award it to someone else who could actually use it.

The university is set up so all housing above freshmen level have full kitchens. I understand many feel she should suck it up and eat on campus. The options aren't great, and spending money on groceries to cook your own food is a better option for her. Eating off campus is purely a social thing so that comes out of her money. You may feel she doesn't "need" the money, but I'd disagree. Just because we spend differently than others would doesn't mean the need isn't there.

 

[NewRVLady]

No, it is a regular, plain old job. I was shocked when she said they pay in a scholarship!

I had a campus job-I was paid by check

I would ditch the campus job, as she doesn't need more scholarship $$ and look for a job at one of the nearby restaurants she frequents

 

[JanaDee]

Two pieces of advice

Number 1, let your daughter figure this out.

Number 2, pay for her undergrad if you are able. Life has a way of happening and a Masters, not to mention a PhD, may end up being a pipe dream.

 

[EMode]

The university is set up so all housing above freshmen level have full kitchens. I understand many feel she should suck it up and eat on campus. The options aren't great, and spending money on groceries to cook your own food is a better option for her. Eating off campus is purely a social thing so that comes out of her money. You may feel she doesn't "need" the money, but I'd disagree. Just because we spend differently than others would doesn't mean the need isn't there.

She should suck it up and use this as a life lesson. If she agreed to the job without even knowing the salary or how it was paid to her then maybe she wasn't really prepared to be on her own in college

 

[LisaR]

She should suck it up and use this as a life lesson. If she agreed to the job without even knowing the salary or how it was paid to her then maybe she wasn't really prepared to be on her own in college

Are you kidding me????? She took the job because it would help her advance her career. It was actually posted as an internship so she assumed it wouldn't pay. OMG! How dare an 18 y/o not get everything right in a job interview. She should drop out of college now and hope she can get a job at McDonald's based on her total lack of preparedness. She actually has another job on campus that she is working this semester that pays and she will continue with that job next year so this was not even something she was thinking of in terms of "job" versus internship. She was surprised to learn that she would get a scholarship for it. How truly insulting of you to say that. She has done nothing but excel in her freshman year and she is being rewarded for that. Sorry you feel the need to read more into it.

 

[Caradana]

Hey Lisa,

You have an awesome kid and this is a golden moment. She should go abroad in the fall or, alternatively, the spring. Defer the job for sophomore year, do it junior instead. It'll look just as good or better (more current) on her grad school apps then. This moment is golden because financially, socially and with respect to the Ph.D. app cycle, she's never going to have conditions better than this to do it. Have her go visit the study abroad office ASAP. If she starts to get lightly freaked out = English speaking country, St. Andrews @ Scotland, Melbourne @ AUS. If she's adventurous - go big. She will thank you for this FOREVER. Perfect opportunity to live it up.

Dana

 

[livie1205]

Nevermind lol ( facepalm)

 

[LisaR]

Hey Lisa,

You have an awesome kid and this is a golden moment. She should go abroad in the fall or, alternatively, the spring. Defer the job for sophomore year, do it junior instead. It'll look just as good or better (more current) on her grad school apps then. This moment is golden because financially, socially and with respect to the Ph.D. app cycle, she's never going to have conditions better than this to do it. Have her go visit the study abroad office ASAP. If she starts to get lightly freaked out = English speaking country, St. Andrews @ Scotland, Melbourne @ AUS. If she's adventurous - go big. She will thank you for this FOREVER. Perfect opportunity to live it up.

Dana

She's actually there at this moment! She LOVES traveling and wants to go everywhere so that won't be a problem. The text she sent me was short so I'm sure we'll talk when she is done with everything, but it looks like they can earmark the money from this job for study abroad, if I'm understanding what she wrote correctly.

 

[Poohforyou]

Are you kidding me????? She took the job because it would help her advance her career. It was actually posted as an internship so she assumed it wouldn't pay. OMG! How dare an 18 y/o not get everything right in a job interview. She should drop out of college now and hope she can get a job at McDonald's based on her total lack of preparedness. She actually has another job on campus that she is working this semester that pays and she will continue with that job next year so this was not even something she was thinking of in terms of "job" versus internship. She was surprised to learn that she would get a scholarship for it. How truly insulting of you to say that. She has done nothing but excel in her freshman year and she is being rewarded for that. Sorry you feel the need to read more into it.

Well, then that explains it. The job is an internship that she's earning scholarship money from rather than cash. The scholarship money may be coming from an endowment rather than the college operating budget.

I think this might be a good way for you dd to gain some working street smarts by going back to whoever hired and asking specific about the job. I bet other students have been in her position before.

 

[NewRVLady]

Are you kidding me????? She took the job because it would help her advance her career. It was actually posted as an internship so she assumed it wouldn't pay. OMG! How dare an 18 y/o not get everything right in a job interview. She should drop out of college now and hope she can get a job at McDonald's based on her total lack of preparedness. She actually has another job on campus that she is working this semester that pays and she will continue with that job next year so this was not even something she was thinking of in terms of "job" versus internship. She was surprised to learn that she would get a scholarship for it. How truly insulting of you to say that. She has done nothing but excel in her freshman year and she is being rewarded for that. Sorry you feel the need to read more into it.

your first post really sounded like you were frustrated with her Getting too much scholarship $$ instead of ready cash.
You did not state that this new job was an internship sort of job at all

 

[LisaR]

your first post really sounded like you were frustrated with her Getting too much scholarship $$ instead of ready cash.
You did not state that this new job was an internship sort of job at all

I (me, not DD) ASSUMED this was a JOB. I am 99% sure that she used the word job when describing this to me months ago. I thought the conversation went something like, "I'm going to apply to be an X. I hope I get the job." I could be wrong. She found out she got the position a few weeks ago. At some point, I asked how much it paid and she said I didn't ask. OMG! I truly wanted to smack her! That's when she said she didn't ask because it is an internship so she assumed it didn't pay. I explained to her that sometimes internships do pay so you really should ask in the future.

So at first I thought she had a paying job. Then I thought she had a good, unpaid, internship. Then she texts and says she just found out they are going to "pay her" with a scholarship. When I started running the numbers, I was pretty certain she would be over the cost of books, tuition, housing, and some money on her debit card for food (not an actual food plan). That's when I started wondering if there were other options to use this money. I didn't know all the facts and I probably don't even know them all now. It does look like there will be a way of using this money towards study abroad (I hope) and not wasting it on a food plan, which it would be for her, or turning it down which would really suck!

 

[TinkerBelled]

I (me, not DD) ASSUMED this was a JOB. I am 99% sure that she used the word job when describing this to me months ago. I thought the conversation went something like, "I'm going to apply to be an X. I hope I get the job." I could be wrong. She found out she got the position a few weeks ago. At some point, I asked how much it paid and she said I didn't ask. OMG! I truly wanted to smack her! That's when she said she didn't ask because it is an internship so she assumed it didn't pay. I explained to her that sometimes internships do pay so you really should ask in the future.

So at first I thought she had a paying job. Then I thought she had a good, unpaid, internship. Then she texts and says she just found out they are going to "pay her" with a scholarship. When I started running the numbers, I was pretty certain she would be over the cost of books, tuition, housing, and some money on her debit card for food (not an actual food plan). That's when I started wondering if there were other options to use this money. I didn't know all the facts and I probably don't even know them all now. It does look like there will be a way of using this money towards study abroad (I hope) and not wasting it on a food plan, which it would be for her, or turning it down which would really suck!

Vis-a-vis the PhD situation, you should keep in mind that the very best programs actually pay a living wage to their graduate students in return for schooling.

If you don't mind me asking, what's her (general) field and her larger career ambition? That might make a difference regarding longer-term planning.

 

[clh2]

Are you kidding me????? She took the job because it would help her advance her career. It was actually posted as an internship so she assumed it wouldn't pay. OMG! How dare an 18 y/o not get everything right in a job interview. She should drop out of college now and hope she can get a job at McDonald's based on her total lack of preparedness. She actually has another job on campus that she is working this semester that pays and she will continue with that job next year so this was not even something she was thinking of in terms of "job" versus internship. She was surprised to learn that she would get a scholarship for it. How truly insulting of you to say that. She has done nothing but excel in her freshman year and she is being rewarded for that. Sorry you feel the need to read more into it.

I agree with you LisaR - our DD was offered a job a year ago to be a Student Aide for the Freshman Summer Orientation program. She was SUPER excited about this opportunity. She also did not know what the pay was. We told DD flat-out that she needed to find a way to figure out how much the position paid prior to her signing the contract. SO - DD writes a very nice, very polite e-mail to the appropriate person on campus. She stated something to effect of: While the experience I will gain from this position will be priceless, from a practical perspective, can you please let me know what the stipend will be for the summer, as I will need that information planning for the fall semester expenses. This was a great lesson for our DD to learn as well.

Also - adding a comment about travel abroad. While we could never have afforded to send our DD abroad for a semester, she did a "J-term" class (i.e. one in January, between the semesters) for art appreciation in Paris and London. In my opinion, the class was a great value (as our DD had a small Global studies scholarship for study abroad, small in regards to a semester abroad ) And the art appreciation knocked off one of her gen-ed requirements, not sure which one, but I don't care either. so - if a semester abroad isn't financially feasible, perhaps her university offers "smaller" study abroad opportunities.