Frequently Asked Questions

Frequently Asked Question Topics

Claiming Your Awards

How long did I have to claim my award? And how long do I have to use it?

You had until June 30th, five years after you took the authorized test to claim your award. Once the award was claimed, the award is available to pay for qualified higher education expenses until you are thirty years old. All awards not successfully claimed, or the portion of the award not fully used by your thirtieth birthday, is forfeited.

Your Scholarship Account

Do I open different Accounts each time that I claim a Governor's Scholarship Award?

No. Once the first Governor's Scholars Award was claimed and a Student Scholarship Account was opened, all subsequent awards were deposited into the same Student Scholarship Account. You will receive an annual statement indicating the total value of your Student Scholarship Account so it is important to keep the Governor's Scholarship Programs informed of any address changes. (See Account Services Form.)

Since California is the owner of all scholarship assets until assets are withdrawn for qualified higher education expenses, will the State of California keep or withdraw any of my scholarship award money?

The State of California will not withdraw any money from your Student Scholarship Account (unless forfeited) nor will you be charged a fee. Your funds are maintained in a separate Student Scholarship Account designated for your use only.

I understand my scholarship award has been deposited into a Student Scholarship Account in the ScholarShare Trust in my name. How is my scholarship award invested and does it receive any earnings?

All scholarship awards are invested in a Funding Agreement issued to the ScholarShare Trust by TIAA-CREF Life Insurance Company that guarantees to the Trust a return of principal and a minimum return of 3% per year with the opportunity for additional returns as may be periodically declared in advance. Your scholarship award plus earnings will remain invested in the Funding Agreement until you request a withdrawal to pay for your qualified higher education expenses.

Withdrawing Funds

When can I use my scholarships?

Scholarships can be used after a student is enrolled at an eligible educational institution.

I read that scholarships must be used at eligible higher educational institutions. How can I find out if the college I plan to attend is an eligible educational institution?

The easiest way is to contact the school. The school must be eligible to participate in the U.S. Department of Education Federal Title IV financial aid programs. The U.S. Department of Education maintains a website that provides a listing of eligible post-secondary institutions participating in federal Title IV student financial aid programs. This criterion is also used to determine if the Governor's Scholarship Programs funds can be used at a specific institution.

To determine if an institution you are interested in is eligible, you may enter the name and location of the school on the FAFSA website.

How do I request a distribution of my scholarship money?

You should complete a Qualified Withdrawal Form and mail it to the Governor's Scholarship Programs at the address indicated on the form.

When will I receive my scholarship money?

Once the Qualified Withdrawal Form is received, scholarship money will be sent directly to the eligible educational institution designated by you for payment of your qualified higher education expenses.

How will I know my college received the withdrawal amount?

A confirmation statement will be mailed to you within seven business days of processing as long as it was complete and signed. You should contact your college directly to ensure that the funds have been received. During the late Summer and early Fall, withdrawal requests may take up to six weeks to process.

Which expenses can be paid with my scholarship award?

Qualified higher education expenses include tuition, fees, books, certain room and board expenses, and supplies or equipment required for enrollment or attendance at the eligible educational institution. However, any portion of the awards or earnings used as payment of room and board costs will be subject to federal and California income tax in the year that the funds are used to pay those costs. You must report such amounts to the Internal Revenue Service when filing your tax return. Similarly, any portion of a scholarship award used to pay for qualified higher education expenses at correspondence schools may not be eligible for federal tax-exempt treatment.

I can't use the funds; can my younger brother use them?

No. Scholarship awards and earnings cannot be transferred to anyone else or used by anyone other than you.

When must I use my scholarship money by?

You will have until your 30th birthday to use your scholarship(s) plus applicable earnings.

Loss of Scholarship Funds and Appeals Process

How long should it take before I hear from the ScholarShare Investment Board regarding an appeal?

You will receive a written decision within 30 days of receipt of your appeal.

Effect on Financial Aid

What is the effect of receiving these scholarships on financial aid?

The law enacting the Governor's Scholarship Programs states: "Notwithstanding any other provision of California State law, any funds awarded shall augment and not supplant student financial aid from other California public sources, inclusive of calculating eligibility for student financial aid."

"To the extent allowed under federal law, any Governor's Scholarship award will not be included in the federal needs analysis for student financial aid, as they are assets of the State of California until used for payment of qualified higher education expenses (and are not owned by the student)."

Your Governor's Scholarship Programs award is designed to complement other financial aid from the State of California, such as a Cal Grant. Since these awards are assets of the state until withdrawn, they are not reported on the Free Application for Federal Student Aid (FAFSA) as either an asset or income. Once the funds have been withdrawn, the funds represent a scholarship subject to IRS rules and may be considered taxable income for federal purposes in the tax year of receipt. If it is deemed taxable income, the student will report it on the appropriate subsequent FAFSA as income.

These awards can be used at any post-secondary institution that is eligible to participate in the U.S. Department of Education Federal Title IV financial aid programs; including schools outside the country. See the Student Information Sheet for more detailed information regarding financial aid and the Governor's Scholarship Programs.