Which type of funds would count toward a student's annual budget when awards exceed COA?

• A. A Post-9/11 GI Bill
• B. B External scholarship funds
• C. C Qualified tuition program distributions (529 plan)
• D. D Federal Work-Study

Answer: (B)

External scholarship funds are funds from outside organizations that can be used to cover a wide range of education costs, not just tuition. When total aid exceeds the cost of attendance, these outside scholarships still count toward the student’s annual budget because they provide additional resources the student can draw on to cover expenses beyond what the school charges. They aren’t limited to tuition and aren’t earned income, so they effectively increase the amount available to spend on education.

Other options either replace billed charges (as with certain government benefits that pay tuition) or come with restrictions (529 plan distributions are used specifically for qualified expenses) or are earned income (work-study). That’s why external scholarship funds best fit the idea of counting toward the budget when awards exceed COA.