It depends on the type of scholarship and the restrictions issued by the company. The budget book has specifics.
The ACE loan will happen regardless, the mid will just receive a larger sum when they receive a full check according to the budget book - the money is held.
DS applied for many cash scholarships which issue checks directly to a student - that way he can use the cash for flights and vacations. For his Plan B he also applied to big ticket scholarships like the Eagle and Ronald Reagan, but he asks when awarded if they'd issue to an academy if they don't say up front.