Do outside scholarships reduce need-based aid?

I have all my household’s 2021 tax information and ran it through UC net price calculator and discovered they do not meet all demonstrated need. I’d like to avoid work study and loans to address the balance, which can be as high as around $10k at some campuses. Would pursuing outside scholarships reduce need-based aid if I’m successful?

you’ll probably get more answers if you post in Financial Aid and Scholarships - College Confidential Forums

However a quick search says the answer is maybe, the crucial factor seeming to be whether it adds up to more than the gap UC left you with. I’m not an expert, though, try the FA forum above

If all the aid you receive — outside scholarships, financial aid from your college, and government grants and loans — ends up being $300 or more above your calculated need, the federal government requires your college to reduce the amount of need-based financial aid it awards you.

It’s up to your college to decide what type of financial aid to reduce or cut if you receive an outside scholarship. Some cut down the college’s grant. Others may reduce the amount of your loan. That’s to your benefit — it means replacing loan dollars, which you must pay back, with scholarship dollars that you don’t pay back. Other colleges may apply your scholarship award toward the next semester.

I think I found the answer, at least for Berkeley: “the Financial Aid and Scholarships Office attempts first to reduce loan or work aid; fellowships, grants, or scholarships are only reduced as a last resort.”