Free Scholarship Savings calculator with clear step-by-step results.
A scholarship is worth more than its face value because every dollar awarded is a dollar not borrowed at interest. Compounding the award over the loan term you avoid shows the true benefit, which for a long repayment period can approach double the headline amount.
Total awarded
Awarded = scholarship per year x years + other grants
Interest avoided
Interest = awarded x ((1 + rate)^loan term - 1)
It assumes the award would otherwise have been borrowed and left to accrue for the full term. Repaying earlier reduces the benefit, so treat it as an upper bound.
Often not when applied to tuition and required fees, but amounts covering living costs can be taxable in some jurisdictions. Check local rules.