<p>How do most colleges handle merit scholarships? For example, if my EFC is 30,000 and the COA is 50,000, would the college provide need-based aid of 20,000 and THEN apply any merit scholarships? E.g., if the merit was 10,000, would our amount paid be 20,000 or would it be 30,000 (the greater of the need or merit scholarships?).</p>
<p>Very basic question but I'm not sure.</p>
<p>For most schools merit scholarships reduce your need, not your EFC. So if the COA were $50k and your EFC 30k then your need would be 20k. A merit award of 10k would reduce your need to $10k so need based aid would be based on the $10k need. Most schools will reduce self help awards such as loans before any grants are affected.</p>
<p>Generally the most generous schools that promise to meet full need without loans (very few) do not award merit based scholarships, only need based aid.</p>
<p>I realize it works the way swimcatsmom describes, but does anyone know of any schools (preferably pretty selective) that would add at least some of the merit aid to the need-based aid? Is it ever negotiable?</p>
<p>The part that is a bit negotiable is if…</p>
<p>You are attending a school that does not meet full need and you have been “gapped.” The merit aid can be applied to the “gap” before reducing your need-based aid.</p>
<p>or</p>
<p>You have subsidized loans and/or federal work study. As swimcatsmom, most schools will allow you to apply your merit aid to those before reducing grant aid. Often they reduce your grant when the scholarship arrives (as they did at D’s school) and you need to call or email to request they reduce your loans and/or work study instead (which they did with no problem).</p>