Can you spend leftover grant money?

Yes, you can often spend leftover grant money, especially for educational expenses like books, living costs, or travel, but it depends heavily on the grant type (e.g., Pell vs. research), requiring you to check the specific award's rules, use funds for approved purposes (or risk taxes/repayment), and potentially communicate with the funder for surplus institutional grants. For student grants, refunds often go directly to you after school costs are covered; for research/institutional grants, you must follow the sponsor's guidelines, which might require approval for different uses or returning funds.

What happens to unused grant money?

Grants are distributed similarly to scholarships

Generally, college grants are free money from the government that are awarded to you based on financial need. Grants are paid directly to your account at your school; any leftover money is then given to you directly for other expenses.

What happens if you use grant money for something else?

Using federal grant dollars for unjust enrichment, personal gain, or other than their intended use is a form of theft, subject to criminal and civil prosecution under the laws of the United States.

What happens to unused grant money in a nonprofit?

Grant agreements typically require grantees to return unspent funds at the end of a grant period or if the grantee determines it cannot use the funds for the specified purposes, and most grantees are likely to comply with such requirements.

Can you keep scholarship money you don't use?

If you decide that you do not want to use your scholarship money, you must reach out to your provider and your financial aid office to understand the right course of action, since every scholarship is different. In some cases, you may be allowed to keep the money and put it towards anything you want.

3 FAFSA secrets to help you get the most financial aid

Can I spend scholarship money on whatever I want?

You can typically use the money towards tuition, room and board, and other education-related expenses. However, some organizations restrict how you can spend the cash. In this article, we've highlighted what you can use scholarship money for, how you can use it, and temptations you'll want to avoid.

What are you supposed to do with leftover FAFSA money?

Should You Return Unused FAFSA Money? If you don't actually need the refunded amount (for example, if your living expenses are covered in another way), you can return the money to your lender to reduce your future loan balance and interest.

Can you spend grant money on anything?

The Pell Grant can theoretically be used to pay for any expense. However, using these funds on expenses that aren't considered “qualified education expenses” may make the money subject to taxation.

What happens if I don't withdraw grant money?

FAQs on SASSA Grant Expiration

SASSA grant money itself does not technically expire, but if left completely untouched for 90 days, the grant can lapse/suspend, putting the funds at risk of being reclaimed.

Is leftover grant money taxable?

Most students leave this question blank because most scholarships and grants (such as, Pell Grants, Federal Supplemental Education Opportunity Grants, and TEACH Grants) are not taxable, unless those award amounts exceed the total amount the student paid for tuition, fees, books, supplies, and required equipment.

What is misuse of grant funds?

Grant fraud typically occurs when award recipients attempt to deceive the government about their spending of award money. Such behavior amounts to "lying, cheating and stealing," according to the Department of Justice.

What is the #1 most common FAFSA mistake?

The #1 most common FAFSA mistake is leaving fields blank, requiring all questions to be completed (with "0" for zero or "N/A" if applicable) and ensuring names, Social Security numbers (SSNs), and dates of birth match official documents exactly, as missing or mismatched info creates major processing delays and can deny aid. Other frequent errors include swapping student/parent answers, misreporting marital/parental status, or not applying at all, often due to assumptions about income.
 

Can you pay yourself with grant money?

Basically this means that you can give the money to yourself. Instead of spending it on something else on this list, you can take the money and use it for any purpose you want. You can put it aside for your retirement, pay off debts, take a vacation, make a home improvement, purchase business equipment, whatever!

How much is the monthly payment on a $70,000 student loan?

A $70,000 student loan's monthly payment varies greatly, from roughly $700 to over $2,000+, depending on your interest rate (APR) and repayment term (years); for example, a 10-year term at 6% might be around $790/month, while a longer term or higher rate significantly increases payments, with options like Income-Driven Repayment (IDR) adjusting payments to your income. 

What can you use grant funds for?

Grants are usually awarded to projects that: Create jobs. Build or improve infrastructure. Provide further training or upskilling opportunities to employees.

Do you keep money from grants?

Grants are gift aid from federal, state, or university sources. They are awarded to students based on need, and they DO NOT NEED TO BE REPAID.

Does SASSA check your bank account?

SASSA checks your bank account to make sure you meet these requirements. This checking process looks at your income records and compares them with other official databases. If you earn more than the allowed amount or get unemployment insurance payments you will not be eligible.

What happens if you don't use your grant money?

The government views this as unearned money since you didn't complete the program. Be prepared to pay back half of the "unearned" money. If you receive $1,000 and leave school in the middle of the semester, you will pay $250.

Do you have to repay grant money?

No, grants are generally considered "gift aid" that you don't have to pay back, but you might have to repay some or all of a grant if you don't meet specific conditions, such as withdrawing from school mid-semester, failing to maintain academic progress, misusing funds, or not fulfilling service obligations for specific grants like the TEACH Grant. For student grants (like Pell or FAFSA-based aid), repayment usually only occurs if your financial situation changes drastically or you drop out, triggering an overpayment you must return. 

Is grant money reported to the IRS?

Generally, you report any portion of a scholarship, a fellowship grant, or other grant that you must include in gross income as follows: If filing Form 1040 or Form 1040-SR, include the taxable portion in the total amount reported on Line 1a of your tax return.

Can I buy groceries with FAFSA money?

Along with school meals, groceries, rent, housing supplies, and utilities, you can also use your loans to buy books, a laptop, and anything else that will make a difference in getting that perfect GPA. The first step is filling out a FAFSA.

Is $40,000 in student debt bad?

According to recent research from the Education Data Initiative, it costs the average student $38,270 per year to attend a four-year university in the United States. Right now, the average student loan debt in the U.S. is nearly $40,000 but many students borrow much more.

Can I keep leftover Pell Grant money?

You can't use your Pell Grant to directly pay your student loan. However, if there are any funds left over after your school applies your Pell Grant toward your tuition and fees, those funds are given directly to you, and you then may use them to reduce your loan amount.

Can I use my FAFSA money for a car?

Although the list of appropriate uses for federal student aid is straightforward, there are some notable exceptions: Cars: Using your student aid for transportation can include gas and maintenance for a pre-owned car, but you cannot use your aid to buy a car during your time in college.

Can you use FAFSA money to buy clothes?

Tuition, fees, supplies and textbooks are among the expenses approved by the federal government, while things like vacations, clothing and some other personal expenses are prohibited.