<p>My experience is that NMF scholarship handling definitely varies by school.
Specifically, Carleton College told us that they allow the NMF funds to be used for EFC (but not any other outside scholarship). Columbia said they would reduce work-study for NMF and Penn said they would reduce student contribution for NMF.</p>
<p>My son originally received a need-based grant from his university of about $2300, in addition to university-based scholarships. He was recently notified of being awarded an outside scholarship for $3500/year, which we reported to the FAO. We were informed of “updated financial aid” shortly thereafter. Sure enough, the need-based grant is gone. I do understand the reasoning; afterall, his “need” was reduced by $3500.</p>