If I win external scholarships to bridge the gap between my institutional merit aid and my COA, that will cover whatever my EFC is, right? The university I’ll be attending does stack scholarships (meaning that they don’t reduce their aid at all).
I don’t think anywhere has a policy that you must pay what your EFC is if you have external scholarships won and ready, right?
Scholarships will usually NOT cover your EFC…most schools will take the scholarship money off your institutional aid. There are some schools that don’t…I think UA stacks scholarships…check with @mom2collegekids about that
My school doesn’t do that. Already confirmed.
Eh, don’t sweat it 
I’ll just contact the school to put my mind at ease. Thanks!
If you do get that much scholarships that exceed all need based aids and the gap, then you may be able to go below your EFC. If you do receive need based aid, external scholarships (and internal too) will reduce your need and therefore your need based aid first.
Check to see if those outside awards are for more than ONE YEAR…most are usually ONLY for freshman. IF so, then you won’t have your EFC money for the other 3 years.
It depends upon the school and if your package has federal aid or other need based aid that requires payment of your EFC. PELL is an entitlement so it does not have to be reduced if your EFC gets covered, but when it comes to other federal awards including subsidized loans, federal workstudy, SEOG, if you get outside awards, they cannot be applied to your EFC, but have to reduce those awards. Some other awrds work that way too.
As a general rule, one does have to pay the EFC unless getting a school where the cost is below it or one gets merit money that eats into it, or the school does not integrate PELL.
Most colleges will explain on their financial aid website. Most schools we are looking at say your EFC will not change and those outside scholarships will be subtracted from the schools aid and not your EFC…unless of course you are getting zero aid. Then of course.
You must check the policy at your school. Most schools will first reduce the self help portion of the financial aid package (student loans, work study). then they will reduce (pretty much $ for $ the need based component of the financial aid package.
Keep in mind that all scholarship monies above the cost of tuition, books, fees is taxable income.
For example if you go to a school that meets 100% demonstrated need and your financial aid package is as follows:
Cost of attendance $55,000 EFC = $20,000
Need $35,000
School merit Scholarship $15,000
Work Study $2000
Subsidized loan $3500
Unsubsidized loan $2000
College grant $13,000
Student wins big outside scholarship One time scholarship of $20,000
Scholarship would first cover
work study $2000
Loans $5000
College grant $13,000
Family would still have to pay the EFC. Parents would have to have in financial plan paying for the next 3 years when scholarship is not into play (parent Out of pocket cost at least $80k over 4 years)
Using same scenario, student win big $20k scholarship ($5k year/4 years)
Scholarship would be applied as follows:
work study $2000 (recommended)
Sub loan $3500 ($1000 recommended)
Unsub loan $2000 (recommended)
Student would still be able to borrow the $2k unsub loan to help pay the EFC from $20k to $18k.
Student has 0 EFC at school that meets 100% demonstrated need no-loan
COA $60,000
Student contribution $3000
Work study $2000
Pell grant $5775
School grant $ $49,225
Big scholarship one time 20k
Would be applied to Work study $2000
Because Pell grant is an entitlement, it will not be reduced.
School Grant (may be reduced to $31, 225, $49,225- $18,000)
Student is still responsible for student contribution (EFC). Will probably still have to pay the tax on the room/board part of the financial aid package, whether monies is coming from school institutional aid or outside scholarship). Student can ask if part of the scholarship can be used to pay for one time cost of computer and books