My son received a scholarship from my employer ($1000/yr for 4 years). He was able to deposit the check through the admissions office each semester, and the money was put toward paying off his loan early. After the loan was paid, the money went into his pay account.
The scholarship has to be free of restrictions on how it can be used. Example: A scholarship that can be used only for tuition and housing wouldn't be able to be used at the Academy, since there is no charge for those. This is what the Instructions to Appointees says about scholarships:
Scholarships: Agencies should issue scholarship proceeds directly to the Cadet. When a scholarship agency is unable to make payment directly to the cadet, the scholarship may be accepted for credit to the Cadet's pay account provided there are no restrictions on the scholarship and the check is payable to the U.S. Treasury. Restrictions are any condition or limitation an agency places on the use of their scholarship funds. Restriction examples; "must be used for tuition room and/or board," "student is required to maintain a specific GPA," "scholarship funds will be paid back if Cadet disenrolls," etc. Scholarships silent on restrictions will be treated as non-restrictive and accepted. Once a scholarship is accepted it is never refunded to the agency granting the scholarship, even if the cadet disenrolls.
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