Can someone explain to me how scholarships work?

Paying for College
1

<p>Hi, I am a high school senior and I have decided to attend UCSB. Foolishly, I have never looked up or even tried applying for scholarships. I hope I still have time left to apply to some. Are scholarships free money? What I read in another topic has confused me, do scholarships actually reduce the amount you have to pay? Or do they just lower the amount of money that the school gives you because you have less need? If the latter is true, I don't understand the point of applying for scholarships. Please clarify this for me.</p>

2

<p>It's very likely too late to apply for scholarships from colleges. There is still time to apply to scholarships from outside sources. </p>

<p>All scholarships ARE basically free money.</p>

<p>Sometimes, "outside" scholarships reduce the amount you have to pay for college.</p>

<p>However, as you read in a previous post, outside scholarships might instead reduce the amount of financial need-based aid you get from the college. The policies are set by the school. You are not the first one to make the observation that applying seems pointless in that case.</p>

3

<p>I could have been more clear on one point...</p>

<p>It's basically the need-based aid that is reduced. The college is giving you money because your family shows a need, for instance, and then you come up with $2000 from an outside scholarship. Well, in the college's eyes, you no longer have a need for the $2000 they previously awarded you in need-based aid. So they take your $2000 outside scholarship and reduce the amount of need-based aid you get. You break even. Except for the fact that you went through all that trouble to apply for the scholarship.</p>

<p>I don't believe colleges would take away merit aid or talent aid if you were awarded an outside scholarship. You, in a way, "earned" those with your talent or academic merit.</p>

4

<p>Students on need-based aid can often benefit from outside scholarships. There are many universities that allow you to replace the "self-help" portion of your financial aid with outside scholarships. For example, if you have been awarded $3,500 in subs Stafford loans and then win a $3,500 outside scholarship, many universities will allow you to replace the loan with the scholarship without reducing any grants they may have awarded. UCSB follows that policy:

[quote]
UCSB will award its limited allocation of scholarship aid primarily to continuing UCSB students who filed the FAFSA by the March 2 priority deadline and who meet the dual criteria of financial need and academic merit. New students to UCSB applied for restricted scholarships when they completed the 2009-2010 Application for Undergraduate Admission and Scholarships in November 2008. Additionally, there are links to other scholarship opportunities on the scholarship section on our web site. Please note that any scholarships received reduce the student's need and may necessitate a reduction in the financial aid package. However, the first aid type that would be reduced is student loans.

[/quote]
UCSB</a> Financial Aid</p>

5

<p>UCSB only claims to meet 80% of need. The quote says that outside scholarships reduce need and MAY necessitate a reduction in financial aid. This leads me to believe that outside scholarships will cover unmet need first before reducing financial aid. That's what my son's school did when he got outside scholarships. Once need was met they reduced his loans.</p>

6

<p>Yes! If you are "gapped" by your school, outside scholarships can often be applied to the "gap" before need-based aid is reduced. You may find that the schools, even those with this written policy like UCSB, will reduce your grant aid when you inform them of the scholarship. A telephone call, email and/or letter referencing their written policy and asking for your package to be adjusted to reflect that policy usually solves the problem. Remember to always get first and last names, print out emails, and save letters in case you have to contact them again about the same issue.</p>

7

<p>Depends on the school's policy. In my case, my Work-Study gets reduced first, then my student contribution, then my grant, I think (pretty sure they don't reduce parental contribution). However, if you can use them for a different year, save it for that. Your need-based package may decline for that year, but it's better than throwing it away, you know? Good luck.</p>

8

<p>Fund Your Future financial aid workbook for 2009-10.</p>

<p>In these uncertain economic times, it is more important than ever for students and families to understand all the options available to help pay for college. </p>

<p>Each publication provides descriptions of the major types of federal aid—including grants, loans and work-study.
State publications also include financial aid programs unique to each state.</p>

<p>Geared toward high school juniors and seniors and incoming college students the workbooks offer:
· a step-by-step guide to applying for student aid
· tips for completing the Free Application for Federal Student Aid, or FAFSA
· at-a-glance charts summarizing key financial aid and federal loan programs
· a financial aid checklist organized by season
· financial aid options that are not based on financial need
· worksheets for student budgeting and evaluating financial aid offers
· a handy list of helpful Web sites on the back cover
· an easy-to-follow layout</p>

<p>The workbooks cover federal student and parent loans, and what it means to accept a loan, including important rights and responsibilities.</p>

<p>Versions
National English - <a href=“https://www.edfund.org/pubs_order/epub_GetPdf.cfm?documentId=I-2.5[/url]”>https://www.edfund.org/pubs_order/epub_GetPdf.cfm?documentId=I-2.5&lt;/a&gt;
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Arizona - <a href=“https://www.edfund.org/pubs_order/epub_GetPdf.cfm?documentId=I-2.1[/url]”>https://www.edfund.org/pubs_order/epub_GetPdf.cfm?documentId=I-2.1&lt;/a&gt;
California (English) - <a href=“https://www.edfund.org/pubs_order/epub_GetPdf.cfm?documentId=I-2[/url]”>https://www.edfund.org/pubs_order/epub_GetPdf.cfm?documentId=I-2&lt;/a&gt;
California (Spanish) - <a href=“https://www.edfund.org/pubs_order/epub_GetPdf.cfm?documentId=I-3[/url]”>https://www.edfund.org/pubs_order/epub_GetPdf.cfm?documentId=I-3&lt;/a&gt;
Hawai`i/Pacific Islands - <a href=“https://www.edfund.org/pubs_order/epub_GetPdf.cfm?documentId=I-2.2[/url]”>https://www.edfund.org/pubs_order/epub_GetPdf.cfm?documentId=I-2.2&lt;/a&gt;
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Oregon - <a href=“https://www.edfund.org/pubs_order/epub_GetPdf.cfm?documentId=I-2.6[/url]”>https://www.edfund.org/pubs_order/epub_GetPdf.cfm?documentId=I-2.6&lt;/a&gt;
Washington - <a href=“https://www.edfund.org/pubs_order/epub_GetPdf.cfm?documentId=I-2.3[/url]”>https://www.edfund.org/pubs_order/epub_GetPdf.cfm?documentId=I-2.3&lt;/a&gt;&lt;/p&gt;