First vs. Second Year Treatment of Outside Scholarship

Paying for College
1

My child has been admitted to a great school that came through with a FA package that we are very happy with. Their package was made up of a grant, a subsidized loan of $3,500, work study, and of course my EFC.

Late last week we were notified that my child has won an outside scholarship for $3,000 per year for 4 years. I looked at the school’s website but still had questions so I contacted them.

I was told that outside scholarships will replace loans first, but only in the first year. After that outside scholarships would reduce the grant dollar for dollar.

Does anyone have experience with this scenario and if so can you confirm that is how it went for you? I don’t mean to sound ungrateful but I was really hoping the $12,000 over 4 years would reduce loans for my child. But it sounds like only $3,000 of the $12,000 will reduce loans.

Thanks

2

This likely varies by school. Your school would be the one to most accurate,y answer this question. If you are not clear on their answer…or want another person to verify, call the school again and ask to speak to a supervisor in financial aid.