Financial Aid Package - Please Help!

Paying for College
1

I’m reading my son’s “ePromise” that has all of the jargon regarding his financial aid award. There’s a sentence in here that’s terrified me because he’s received a quite substantial amount in merit scholarships ($41,000) and the COA is just under $50k/year. So, based on the information below, could FAFSA come back and take away the $1,845 my son is receiving via a Pell Grant? And could they take away the $3,500 subsidized loan? I’m pretty much in a blind panic because we’re counting on that money. Help!

Here’s the wording that we have to agree to:

"I understand that all prizes, awards, scholarships and grants awarded to me by Miami University will be credited to my student account and applied toward any outstanding balance. I further understand that my receipt of a prize, award, scholarship or grant is considered a financial resource according to federal Title IV financial aid regulations, and may therefore reduce my eligibility for other federal and/or state financial aid which, if already disbursed to my student account, must be reversed and returned to the aid source.

2

It’s referring to outside scholarships. If your need is somehow reduced then you wouldn’t be eligible for as much aid. Your Pell Grant is safe and so are your loans unless something happens in the future where you win the lottery.

3

@collegemom9 Thank you so much for your fast reply. You’ve greatly reduced my anxiety.

4

BTW, FAFSA can’t take away anything. FAFSA is just a form.
The Federal government provides the Pell and Federal loans but allows the colleges to handle the disbursement.