<p>I checked a random sample of Ivy and NESCAC schools. All seem to use outside scholarships to first reduce the loan and/or work part of the school’s financial aid package. Interestingly, of the 4 schools I checked, the only school that allows students to use outside scholarships to reduce the parent contribution is Bates, the least well endowed. If you’re looking at specific schools just google “X College, outside scholarships” and you should be able to get information on the college websites as to that school’s policy. These schools include room and board, books and fees in the cost of attendance so although NROTC may split tuition out from the rest the “no-merit” schools do not.</p>
<p>As I understand it, let’s say a school charges tuition of $42,000, room and board of another $12,000 (billed at some schools as a “comprehensive fee” of $54,000) plus anticipates costs of $1000 for books and fees, and has awarded the student a FA package including $35,000 in grants, $5,000 in loans, a $3,000 summer contribution, $2,000 in work-study and a $10,000 parent contribution. At most schools the NROTC scholarship would wipe out the $10,00 combined total of loans and work and would replace $32,000 of the grant. The family would still pay the $10,000 family portion but would get the remaining $3,000 as a grant. </p>
<p>At Bates (and perhaps at other schools I didn’t check) the award would also replace the $10,000 loan/work portion but could be used to cover the parent contribution as well. The student would receive $13,000 in grant money.</p>
<p>I’m not a FA professional so I would recommend confirming this information with the schools in question.</p>
<p>“Bates has a generous outside scholarship policy. Students can use outside scholarships to reduce or eliminate the loan and/or work portions of a financial aid package, or help with the family’s calculated contribution toward costs. A student’s Bates Scholarship is adjusted only when the combination of scholarship aid from all sources (Bates, federal, state or other) exceeds the student’s calculated cost of attendance.”</p>
<p>Cornell: “Outside scholarships or tuition benefits will reduce the self-help component (loans and work-study) of your financial aid package, but will not reduce the family contribution. If all the self-help support in your award is cancelled, in some cases, the Cornell grant aid may need to be reduced or cancelled as well.”</p>
<p>Williams: “These outside scholarships first replace the loan portion of the Williams financial aid package. If outside funds remain after loans have been eliminated, the job portion of the award would then be replaced. Once your outside scholarships replace the loan and job portion of your financial aid award, your aid from Williams will be reduced on a dollar-for-dollar basis.”</p>
<p>“Harvard’s current outside award policy is to use the full amount of outside awards first to replace your term time job expectation and then your summer earnings expectation. When outside award totals are greater than these expectations, the excess amount must be used to replace an equal amount of Harvard scholarship. Since outside awards are additional resources that reduce need, they cannot be used to replace the parent contribution.”
(Note: Harvard has a no-loan policy.)</p>
<p>I hope this helps!</p>