<p>We're busy reviewing FinAid packages. D recently received an outside scholarship. We're having trouble determining how the scholarship will affect the estimated package. Some schools state that they use outside scholarship money to offset any Federal loans they have offered the student.</p>
<p>I have emailed each of the schools and asked specifically how they would handle this. I know that each school can have their own policy on this. Some of them will not provide an "answer" but say that they will do a final review of FinAid in May/June after they know the student will be matriculating. The organization granting the scholarship will write to the school insisting that they not reduce any merit or need based aid as a result of this award. </p>
<p>We have done a spreadsheet with both scenarios - applying it directly and offsetting the Fed loans. Either way, it will affect the numbers and it will affect which schools will be within our "affordable" range.</p>
<p>Does anyone have any experience with this situation? Suggestions? Thanks.</p>
<p>My daughter recieved an additional scholarship and it reduced her federal loans. In her case it got rid of her sub Stafford and reduced her Perkins. When we subsequently asked that part of her WS be converted into a sub loan (it was $3400 - a lot to make in a year) it was converted to Stafford rather than the better Perkins.</p>
<p>In most cases if need is fully met and there is federal money involved the scholarship will reduce the aid. For federal aid EFC plus need based aid plus merit aid cannot exceed COA. I believe it usually reduces loans first, then WS then grants. Generally only when there is no federal aid will the EFC be reduced. There may be exceptions to this though.</p>
<p>I'm not sure I understand. My son has received about $30000 in scholarship from his university, $7500 in federal loans and a suggested $13000 parents responsibility --suggested is a plus loan. Say, for example my son receives $14000 in community scholarships---Will the parents responsiblity be covered first or will they take away the stafford and pell?</p>
<p>Pell is a federal grant. Did you get Pell - and the school expects you to pay $13000? </p>
<p>It is the FAFSA EFC plus federal aid plus scholarships that cannot exceed COA. If you got Pell your FAFSA EFC must be 4040 or below. But your school is presumably a CSS school - they have different rules for their own aid. You would have to ask them how they handle outside scholarships.</p>
<p>Because as it stands now, I should get enough federal aid to cover tuition, but not tuition, room, and board. I also have an outside scholarship, and still waiting on many more, and I'm trying to figure out how these would affect my financial aid.</p>
<p>
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Say, for example my son receives $14000 in community scholarships---Will the parents responsiblity be covered first or will they take away the stafford and pell?
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Generally, the loans and work-study get reduced/eliminated first. Then the college's grants get reduced. Only if the scholarship exceeds all other aid does the EFC get reduced.</p>
<p>The outside scholarship is used to reduce your need. Using your numbers, the COA is about $50,000. Assuming your EFC is $13,000 (and is not a "gap" amount), you have a "need" of $37,000. If someone gives your son $14,000, whether it's an outside scholarship or a gift or whatever, your "need" is now $23,000. The school will reduce your package first by eliminating loans, then reducing the grants to your son, freeing up that money for someone else. Only if the scholarship exceeds the need of $37,000 will it be used to reduce your EFC.</p>