<p>On a Yale information sheet given to us it states that outside aid that exceeds the student effort can only be used to reduce Yale's need aid and not be used to reduce the family contribution. </p>
<p>So let's say my family makes 60k a year. Yale gives me 25k a year and my expected family contribution is 13k and the student effort is 2k. </p>
<p>If I receive a 10k scholarship from let's say...Coca-Cola, that 10k cannot be used to reduce my family contribution from 13k to 3k? It can only be used to reduce the Yale aid from 25k to 15k, benefiting the university?</p>
<p>Then what's the point of applying for scholarships if they can't be used to reduce the family income? (I realize that 2k of the 10k will cover the student effort).</p>
<p>To echo Simba, yes, upper-tier private schools don't give you your money's worth for scholarships. But, these are the usually same schools that give you enough money to attend... with a lower tier school that took your money dollar for dollar, you might be getting a lot less than 27k. It all depends on the school. "Tier" discussion is all generalization - there's an exception to every rule.</p>
<p>In your scenario, this refers to the 2k student contribution. If you get enough scholarships that are delayable, you may never hafta pay the 2k student contribution. Realistically, self-help comes out to more than 2k usually. Even with a EFC of 0, work study is probably another 2-3k, the summer job 2k, and a bare minimum of a 3kish loan, or at least 5-7k. </p>
<p><em>deep breath</em> So... don't slack on those scholarship apps. Good luck!</p>
<p>Different schools do different things. At my school scholarships come out of any loans you might be taking out. ie. if you $2000 scholarship and you are taking out $5000 in loans, you are now only taking $3000 in loans.</p>
<p>To piggyback on what has already been said, the winning of outside scholarships does not negate your parents financial contribution to your education. Please remember that aid offered by Yale and similar schools are need based on your demonstrated need.</p>
<p>Demonstrated need is calculated as follows:</p>
<p>Cost of attendance - EFC (based on what the school believes that your family can afford to pay) = demonstrated need</p>
<p>The meeting 100% of your demonstrated need is all what Yale has commited to giving you. </p>
<p>I don't think that Yale or similar schools have "obnoxious scholarship policies" because forst of all you are talking about private insitutions that are nto obligated to give any one a dime. By giving aid, means that a person would not be denied an education because of the inability to pay. It helps the school to have a diverse student body, and tries to do things as equitable as possible. You already know that the overwhelming majority of private universities don't even meet 100% of your demonstrated need, and those that do meet demonstrated need, do to give grant aid to the extent that the ivies and elite LACs give. </p>
<p>Financial aid in an of it self is based on the premise that your parents are the first stop in the funding of your education. what your parents cannot afford to met is then paid for by *other parents or potential parents * in thr form of contributions made by the alumni and others to the endowment fund. Think about it, if outside scholarships, could replace parents contibutions, all of the full pay parents would be hounding their kids to get them because they would have the real vested interest in getting their child getting the money. </p>
<p>Also remember, even if Yale were to "give" you $25,000 that package is going to have a loan and workstudy (self help) component. So your 10,000 scholarship would reduce your self help. Any remaining monies would go back to the school because you would no "need" this money from the school. The school then moves forward to give it to someone with a need.</p>
<p>If you are receiving merit scholarship money from a school, say Rice, it is not reduced by outside scholarships, because it is not need based. And yes, most schools will use it to reduce the student contribution first, followed by loans, and finally the school's grant, before reducing the parent (family) contribution.</p>
<p>If You Receive Any Need Based Assistance, According To Federal Law, Any Outside Scholarships Must Be Factored In As Resources Available To You. To Reduce The Efc, You Generally Need To Replace All Your Need-based Aid From The School With Outside Scholarships. Once Your Need-based Aid Is Replaced, Your Scholarships Will Start Reducing The Efc.
Unfortunately, You Apply For Scholarships Early Not Knowing Your Final Financial Aid Picture And How The Scholarships Will Help You, But In The End Any Scholarship Money Received Is A Help And An Honor, Even If It Replaces The School's Need-based Aid-because It Releases Funds To Help Another Student And The School Will Also See How Hard You Are Working To Bring In Funds On Your Own Merit. Plus, It Is An Excellent Safety Net Because You Don't Know What The School Will Offer In Need-based Assistance.</p>
<p>I need to test for understanding (as you learn something new everyday)</p>
<p>Are you saying that if a student is a full freight payer (recieving no aid from the school) and they collect outside scholarships, then this money will be used toward paying off their EFC I could understand the students, but would this include the parent's EFC also? </p>
<p>This would mean that it is in the best interest of full payers to seek outside monies. I did not think that the parent could "profit" from and outside scholarship especially if they had the means to pay.</p>
<p>As I Understand It, When Your Need-based Aid Is -0- From The School, Your Efc Can Be Reduced By Outside Scholarships,at Least This Is The Case With The Schools We Worked With This Last Year.
However,if You Have A Gap Between Cost Of Attendance And Your Efc,the Scholarship Money Would First Apply To The Gap.
*any Need-based Aid Such As Loans In The Student's Name Or Work-study Offered By The School Would Be Reduced After The Gap Is Filled. In Other Words,a Loan In The Student's Name Such As An Subsidized Or Unsubsidized Stafford Or Work-study Would Be Replaced.
The Efc Can Only Be Reduced After The Gap,student Loans, And Work-study Are Replaced.
For Instance If You Have A $10,000 Merit Scholarship At The School,your Efc Is $15,000 And Cost Of Attendance Is $30,000: The $5000 Gap Is Filled,and Then Your Efc May Be Reduced. The Schools We Worked With Would Not Reduce The Merit Scholarship Unless The Outside Scholarship Exceeded The Cost Of Attendance. It Seems Schools Vary In Their Policy, But None Of Them Will Allow You To Exceed The Cost Of Attendance, If You Receive $50,000 In One-time Outside Scholarship Awards-you Should Defer The Excess Above The Cost Of Attendance For Future Years. Most Scholarships Have Rules Against Exceeding Cost Of Attendance.</p>