Financial Aid Package & Outside Scholarships

Paying for College
1

My daughter got her financial aid packet from her college of choice. She got some merit aid and a housing grant from them. On the bottom of the letter, it says to inform them of any outside scholarships she receives, why? Will they reduce any of her aid, even if it doesn’t cover cost of attendance and loans still need to be taken?

She doesn’t have any outside scholarships at the moment but who knows she might get some? What if I don’t tell them what would happen? I’m thinking if the scholarship is given in her name and not the college. I’m a little put off thinking they could possibly reduce their aid, when she put in the work for outside scholarships.

2

Yes, they can reduce financial aid, but many schools don’t reduce merit aid.

It also affects eligibility for subsidized loans. If your EFC is, for example, $10k, and your child gets scholarships than cover all but $5000 of the COA, the loans would be unsubsidized.

3

I’m thinking she could get somewhere between 500 and 1,000 in one time outside scholarship.