Can College Scholarships pay off prior student debt?

Question:I just graduated from Penn State (Main Campus) with a Bachelor's Degree in Kinesiology and have about $25,000 in student loans. I am currently a part-time Penn State Graduate Student and luckily I am having my company pay for 75 % of it. I was wondering; if I obtain any scholarships for Graduate School (say a $5,000 one); if I only have $1,000 of current tuition bills as a Grad Student, can that other $4,000 go towards paying off loans from my undergraduate work?

Thanks for your responses : )

Answers:
In most cases, no. There are usually regulations about how scholarship funding can be used. In most circumstances, scholarship money has to be applied directly to tuition. My brother had a similar situation and what he did is that he took more credit hours so that he could fully use his scholarship and then he just got a good job and is almost done paying off his loans.

Good luck!
The scholarship money is yours to do with as you see fit.
It would depend on the scholarship and the company/school awarding it. As a general rule I would tend to say no. However, some scholarships I've seen are checks sent directly to the student, although these are rare. Read the fine print on the scholarship ap. I'm sure it says somewhere.

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