Legal Question in Business Law in Iowa

can someone revoke a scholarship?

Someone issued me a 500 a semester scholarship and then later on after the money had already been credited to my account said they didn't want me to recieve the scholarship anymore because they didn't feel I was being very successful in the critria for their scholarship. Which I still met all the requirements but since they felt I wasn't preforming to my fullest ability they decided to cancel the scholarship. Now I asked them since I had already been credited the money if they would take it back, and they said the money shouldn't have been credited yet. Which I double checked and the money had been credited about a month prior, to my account. Can they take the money back even though the requirements for a gift have been made? They said they would take the money back and to me that sounds kind of fishy considering they already issued me the money. I just wondered if they could take the money back legaly or not.


Asked on 1/27/04, 1:19 pm

1 Answer from Attorneys
Robert Luedeman solo practitioner

Re: can someone revoke a scholarship?

This is not exactly a business law question.

You need to read over your scholarship application and any other relevant documents and determine what the terms and conditions of the grant are and whether you complied with each and every provision both now and in the past.

My sense of it is that if they have decided to stop funding you in the future that is probably a matter left to their discretion. As to whether they can rescind a scholarship retroactively and demand a refund of monies previously credited that is more problematical. Again, that depends on the terms and conditions of the agreements. If you decide to contest this, do put the money in trust until the issue is decided, probably in small claims court. And know this...a dispute of this nature could jeopardize your chances to get further scholarships from these people in the future, so consider your course of action wisely.

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Answered on 1/27/04, 1:44 pm


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