<p>So when college asks you to accept or decline a loan, can you decline it because you want them to throw out the loan and replace with a scholarship? in my case, my school lowered their scholarship to me and raised the amount of loans I would need.</p>
<p>You can decline it for any reason you want. Does not mean they will give you a scholarship to replace it. So if you need the money don't turn it down just assuming they will replace it with a scholarship/grant. It is more likely they will not replace it with anything and you will have to find the money elsewhere.</p>
<p>The better approach would be to see if they will/can give you more scholarship/grant money. If they do then they will take away the loan.</p>