<p>I'm applying to MIT. As you probably know, MIT offers "need based" financial aid which does not have anything to do with merit.</p>
<p>My question is, what if I win a prize like the Intel Talent Search or any other related private academic money award.</p>
<p>Will that get taken into account when they calculate the financial aid package?</p>
<p>For example, let's say without the money prize my family would pay a certain amount a year. If I work hard on the competition and win let's I win $50000 in prize.</p>
<p>Will make parents have to pay more to the schools since now my "need" has decreased?</p>
<p>But then again, if they do it this way, I don't see any incentive for me to work hard and try to win the prize. </p>
<p>I hope that's not how it works. Because that's so communist.</p>
<p>Out side scholarships are ususally applied you your self help aid first (loans and work study) then it is used to reduce the school based financial aid, any monies after that will reduce your parents EFC.</p>
<p>In a nut shell it depends, if your family has a high EFC, then it may wipe out some of that debt.</p>
<p>So, as Director of Financial Aid, I do take some exception to the use of the word "communist" (smiles). Or maybe I don't... :) </p>
<p>Anyway, the answer sybblie provides is correct. We start by reducing your self-help (currently $5500 per year). Once that is reduced to $0, we take away any grant assistance. Only after all of that is gone do we touch family contribution. </p>
<p>By the way, this is not just our rule. This is a Federal Law (outside scholarships must be considered a resource when it comes to awarding financial aid). </p>
<p>One piece of advice we freely give students is to try to limit their outside funding to $5500 annually by asking their providers to save the money until later years, or by saving the funding until graduate school. Many outside providers will work with you on that.</p>
<p>Otherwise, remember that there is some benefit (in that you will work or need to borrow less), but there is some incentive not to receive too much!</p>