Academics · Subject Resources

Won it. Now report it
the right way.

A private scholarship is good news with paperwork attached. The college aid office has to count it and may change the aid offer, some of the money can be taxable, and renewable awards come with conditions that are easy to miss in October of sophomore year. Add each award. The checklist totals the outside aid, shows what has been reported and flags the money and dates to watch.

Add a scholarshipWhat you get

Your scholarships

The worked example is made up: a renewable community foundation award, a one-time essay prize paid to the student and a club award for housing. Saved on this device only.

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What you get

Academics · Subject ResourcesFree

What you finish with
A record per scholarship: name, sponsor, amount a year, years, who it is paid to, what it may pay for, conditions to keep it, the date reported, how the college adjusts aid and six checks. Totals each award over its years and the part that may be taxable; totals this year’s outside aid and the full renewable total and counts unreported awards; flags unreported awards, taxable uses, checks paid to the student, renewal conditions with no plan and colleges that reduce their own grants.
Who it is for
College-bound seniors and current college students with private scholarships, and their parents.
Format
Browser checklist with a saved record per scholarship. Prints one award, all of them in a table or a blank sheet; downloads a spreadsheet (.csv); exports and imports a file.
Access
Free. No account, no sign-in and nothing to install. Everything you type stays in this browser; nothing is sent to Caveat.
Where it lives
The Subject Resources space in Caveat Academics.
Support
Questions about access, an order or a correction: team@caveatacademic.com.

How to use it

  1. Add each award from its letter.
  2. Report every one to the college aid office, in writing.
  3. Ask how the college adjusts aid for outside awards.
  4. Put renewal dates on the calendar.
  5. Keep receipts for tuition, fees and books.

Add a scholarship

Taxes and reporting

What a scholarship can pay for, tax-freeTax-freeTuition and fees requiredto enroll.Books, supplies andequipment the courserequires.TaxableRoom and board, travel andoptional equipment.Any amount paid forteaching or research work.Report to the collegeEvery outside award,whatever it pays for.Aid may change; ask whatis reduced first.What a scholarship can pay for, tax-freeTax-freeTuition and fees required to enroll.Books, supplies and equipment the courserequires.TaxableRoom and board, travel and optionalequipment.Any amount paid for teaching or researchwork.Report to the collegeEvery outside award, whatever it pays for.Aid may change; ask what is reduced first.
For a student working toward a degree, under IRS Publication 970. Taxable scholarship income is reported on the student’s return.

Why the college has to know

Federal rules require a college to count every outside resource when it packages need-based aid. If the total would go over the student’s need, the college must reduce something. Many reduce loans or work-study first, which leaves the family better off; some reduce their own grants. Reporting early means the change happens before the bill.

Say thank you

Sponsors are usually local donors and volunteers, and a short letter about what the money pays for is often what keeps a renewable award going. Send it within a few weeks of the award.

Sources

  1. Internal Revenue Service. Publication 970, Tax Benefits for Education, chapter 1: scholarships, fellowship grants and tuition reductions (irs.gov).
  2. Federal Student Aid, U.S. Department of Education. Outside scholarships and how they affect your aid (studentaid.gov).
  3. National Association of Student Financial Aid Administrators. Outside scholarships and award displacement (nasfaa.org).
  4. National Scholarship Providers Association. Guidance for students on reporting and displacement (scholarshipproviders.org).

The worked example is made up. This is general information, not tax advice; a tax preparer or the IRS can say how it applies to a specific return. Nothing you type is sent to Caveat. Support: team@caveatacademic.com.