<p>I have noticed that at many of the top-ranking schools, I would receive complete financial aid to attend the university, as my family makes in between $40000 and $50000/year and has no assets. However, while I understand that many of these school -- especially the ivies -- do not offer any merit aid, many other schools that are generous with need-based aid do. </p>
<p>This leads me to my question: if one receives a "full ride" from need-based aid to a school that also offers merit aid, would any merit aid the student receives simply be deducted from the amount of financial aid given to the student? For example, if tuition + room and board came out to about $50000/year, and the student received $5000/year in merit scholarships from the school, would the need-based aid the student receives drop to around $45000/year? Or would that merit-based aid be almost a check that could be spent toward meal plans/living expenses/etc. </p>
<p>I would also like to know if the same concept applies to all generous universities -- even the ones which do not offer merit aid -- when it comes to scholarships like the National Merit Scholarship and other local ones. </p>
<p>I know this may sound greedy or obsessive, but I'm just curious as to the technical points of it all.</p>
<p>Thanks!</p>
<p>In general, yes. If you’re receiving need-based aid and also receive an outside scholarship, the scholarship reduces your financial need so the school reduces your need based award. If you’re only receiving merit awards, and also receive outside scholarships, no adjustment is made.</p>
<p>It depends on the school. However, as Sk8rmom states, most of the time, financial aid is reduced by merit money. Some financial aid has to be reduced if there is no need. You cannot get need based federal funds such as PELL, heog ,subsidized Staffords, Perkins once you are receiving funds that exceed your EFC as determined by FAFSA. The college can do what it pleases with its own funds, but it has to abide by federal rules when it come to federal money.</p>
<p>I’ve known a number of kids who have gotten merit within need packages. Some have gotten merit awards that exceed their financial need, in which case, they do not get the financial aid. I know a young man who got a $30K scholarship to a local school. He did lose his subsidized loans, but was permitted to keep the financial aid monies that the school awarded. That was due to school policy. They HAD to take away the subsized loans, but they could do what they darned well pleased with their own financial aid, and they did layer it.</p>
<p>The above posts are correct.</p>
<p>If you have the stats for the top elites and you have a lot of need, then also apply to some schools that you know will give you big merit scholarships for your stats as your financial safety schools. </p>
<p>There’s no guarantees that you’ll be accepted to top schools that meet need, so apply to some schools that will give you huge merit.</p>
<p>When you need or want money, you need to cast a wide net. There really is no way to be sure where you are going to get the best deal in financial/merit monies. I’ve known kids who have gotten their best fin aid packages from the stingiest schools. The reason those schools are so stingy most of the time is often because they save their money to spend on the kids they most want. So the annointed few get sweetest deals, and everyone else is gapped or given loans is how it often goes. But, ah, how sweet it is if you are one of those few. </p>
<p>Kid who need money need to vary the types of opportunities to get money. A low cost state school might be one option in the basket. A selective college that gives strong fin aid packages is another type. A school where you stand out in a way that can garner you some merit money is another choice. You just don’t know what will pan out.</p>
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<p>I’m going to say that I think Pell is an exception to this. Pell is an entitlement and is refundable, so it’s based on EFC and COA only and is not adjusted for other aid…it’s awarded before any other need-based aid for this reason.</p>
<p>A very bright young man we knew was accepted to the most selective schools in the country with full need met at all of them. His “safety” was Penn State and all they had for him was a grant of about $2K or so, and government money in terms of grants. So things can turn out quite differently from expected. Another high need applicant I knew, found most of her packages had half the cost met in loans. How they expected her and/or her parents to pay those back with their financial picture as given, I don’t know. But that was what they gave, and they still proudly brag that they meet 100% of need.</p>
<p>Most schools (there are exceptions) will not give you more aid then the COA (Cost of Attendance). So let us say you full need of $50,000 is met with say $42,000 in grants, $6000 in loans and $2000 in work study. After this package is given, you get a scholarship to the tune of $5000. Now if the package is not changed, you will have received a total of $55000, when the COA is $50,000.</p>
<p>Colleges are not going to allow you to keep $5000, so they will adjust your FA package. How they do it depends on the college. Some may apply the $5000 towards the work study and loans. In this case your $50,000 is met as loans of $3000, Grants of $42,000 and $5,000 scholarship.</p>
<p>Other colleges may reduce the grant amount to $38,000, add the scholarship of $5,000 and keep the other parts as the same. There are many ways of adjusting the scholarship, most of them will ensure that your total package including the scholarship does not exceed the COA.</p>
<p>Um… There are colleges that would. I have seen schools that reduce their awards by a percentage of per dollar of any outside scholarships. I have seen kids “make money” off of a combination of fin aid and merit money. But it is rare in these days of scarce financial aid, with so many needing more. I think it is only fair, since those with zero need are on the gravy train with merit money in terms of family expected payments. Those who are needy, aren’t allowed to get any extra to reduce the cost to the family. Doesn’t sit well with me. But them’s the rules except for the Pell, I guess, but I’m sure most colleges will aggresive integrate every bit they can of any merit or outside money to make their fin aid dollars go further.</p>