The rules for spending your scholarship dollars are set down by the scholarship sponsor. These rules can be very detailed or quite simple.

Scholarships Rules Can Be Strict or Liberal
Almost all college scholarships are intended to pay for at least part of your tuition and other college expenses, at least for your freshman year. (If they're renewable, scholarships can pay for up to four years of these costs.) Many scholarships award money for other college-related expenses such as books, computers, supplies, and study-abroad stipends. Still others allow more loosely related expenses such as travel for academic purposes or salaries for internships.

The Consequences of Misspent Scholarship Money
What would happen if you used scholarship money for something the rules don't allow? If you spend your own money and expected to be reimbursed, you have to find other sources such as personal loans or credit cards. If you are found out, you are likely to be required repay the entire award. You might even have to pay interest, even if you drop out of college. Even bankruptcy might not save you from your legal responsibility.

Avoiding Temptation
If you have a say in how the money is disbursed, choose to send it directly to the college. What if it is awarded in a lump sum and only part of the money is intended for you to spend on college-related expenses? You are still better of paying the entire sum to the college. The college can then deduct their expenses first and issue you the balance.

If the entire amount is sent to you or your portion is sent in a separate check plan ahead exactly what you will do when the check arrives. Know what college-related expenses you will pay and stick to your plan. If you're given money for a computer and spend it on spring break, you may have a rude awakening when that computer isn't there when you need it.

There's nothing like staring at a check worth several thousand dollars. It's natural to dream a little. But stick to the rules and nurture your college dreams instead.