Outside Scholarship and need based aid

If a student is accepted to Harvard that is very low income (0 EFC) and then gets outside scholarships ($15-$20K) how is that handled?

https://college.harvard.edu/financial-aid/types-aid/outside-awards

As indicated above, outside scholarships are FIRST applied to a student’s term-time job expectation and summer earnings expectation, (and a one-time freshman year computer purchase). THEN, if there is any excess outside scholarship money, your Harvard Scholarship is reduced DOLLAR for DOLLAR.

Real world example: If a student brings $20K of outside scholarships to the table, approximately the first $6K is applied against a term-time job expectation, summer earnings expectation and a one-time computer purchase freshman year. The remaining $14K is then deducted dollar-for-dollar against your Harvard Scholarship, thereby REDUCING your Harvard Scholarship (free $$$).

That may seem unfair, but that’s because Harvard only allows for need-based aid, even if a student brings merit aid with them to the school. FWIW: If a student is bringing $15K to $20K per year in merit aid to the table, financially they would be better off attending a school, like Duke, that allows for a combination of need-based and merit-based financial aid. Harvard, by Ivy League Conference rules, just like Yale, Princeton, Brown, Columbia, Cornell, Dartmouth and UPenn is only allowed to provide need-based aid to students (no merit aid is allowed).

Thanks @gibby, very helpful. I just attended a high school award ceremony and a very deserving student that accepted to Harvard received multiple, large, one time local scholarships and since I had an inkling of how things worked, was kid of sad that this one kid was getting so much $$$ that could have gone to kids where it would have made a difference.

I don’t think he knows how this is going to work out and is going to be very disappointed when he figures it out. I’m to reach out to him to see if he can get some of his scholarships deferred a year so he can make the most of it.