<p>Let's say my EFC is $12,000 and I'm going to a school that meets 100% of need.
If I receive a $10,000 merit scholarship from that school, will that go towards meeting my full need? Or can I use it to pay the $12,000 expected from me and my family, so that I'm only paying $2,000?</p>
<p>It depends on the school. The one my daughter attends awarded her a merit scholarship based on her high school grades and SAT scores. Then they figured her need and gave an additional need-based aid. Her semester bills were smaller than our EFC.</p>
<p>Other schools do things differently. Pays to apply to a number of schools and compare FA packages.</p>
<p>Most schools will put the scholarship towards your need. </p>
<p>Usually the way to reduce “family contribution” requires a student to get so much in merit scholarships that it covers all need and then cuts into EFC.</p>