<p>Do merit scholarships (institutional) reduce your need-based aid? Like, if you're need-based aid was 30K and you got 20K in a school scholarship, would your need-based aid be reduced to 10K?</p>
<p>It depends on your school’s policies. For example, my school will use outside scholarships to first fill a gap (if there is one) between aid and COA, then reduce scholarships, finally work-study/employment. If there is still some outside scholarship left over then it reduces institutional grants. Again, I stress that it depends on your school.</p>
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<p>the answer to the question as asked, is yes. Institutional merit will reduced your need. the example you presented is correct. Remember part of that need based aid, could be work study and/or student loans.</p>
<p>Yes, but if his school costs 50k then it wouldn’t necessarily be reduced. Some schools will reduce everything else before need-based aid.</p>
<p>Do merit scholarships (institutional) reduce your need-based aid? Like, if you’re need-based aid was 30K and you got 20K in a school scholarship, would your need-based aid be reduced to 10K?</p>
<p>Can you clarify? do you mean this…</p>
<p>$50k = COA</p>
<h2>$20k = EFC</h2>
<p>$30k = “need”</p>
<p>So, if you’re given $20k in merit scholarships, then that will go towards your $30k in need. It won’t go towards EFC.</p>
<p>@romanigypsyeyes: what do you mean?</p>
<p>Here is an example</p>
<p>COA 50,000
EFC 20,000
NEED 30,000</p>
<p>Award 5,500 loans
W/S 1,500
Grant 23,0000
Total Award 30,000
EFC 20,000<br>
total 50,0000</p>
<p>The award meets need in this case. If you add an outside scholarship of 10,000 the award may change to this:</p>
<p>Scholly 10,000
Grant 20,000
Total Award 30,000
EFC 20,000
Total 50,000</p>
<p>I have seen this situation at full need met schools. This way any money the student earns on a non-WS job can help defray costs and the student can still take a loan to reduce EFC. So the EFC of 20,000 can be reduce by loan (5,500) and work (1,500) and end up being 13,000.</p>
<p>At a non meet need the scholarship would most likely be applied to any gap first.</p>
<p>Please note this is completely school dependent. Some schools will “share” the scholarship between the student portion (loans/WS) and the grant from the school. My D got an award where the first $500 went to the student then the scholarship was shared 50/50 until all work study/loans were reduced to zero.</p>
<p>Since you’re asking about “institutional merit”, then it works like this:</p>
<p>FIRST the institutional merit is applied to need. THEN, financial aid is applied to whatever is left. </p>
<p>School awards you a full tuition merit scholarship of $35k. </p>
<p>55,000 = COA</p>
<h2>35,000 = school’s full tuition merit award</h2>
<p>20,000 is now left.</p>
<p>if your EFC is $20k or more, then you won’t get any more aid. </p>
<p>If your EFC is $15k, then you’d be given a $5k student loan to cover that $5k of unmet need. </p>
<p>If your EFC is $10k, then you may be given $7k of loans and work study, and you may have a $3k gap. </p>
<p>Outside merit is sometimes handled differently, like NEmom described. But, institutional merit is likely always applied FIRST, then aid is applied next. Institituional merit usually does not replace loans or work-study unless need is met with the merit award.</p>