Outside scholarship, reduce your finaid grants or reimbursed?

Paying for College
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<p>I have an outside scholarship for $1000 that i need to email in order for the organization to send a check to my university. My financial aid package is grants and loans.</p>

<p>If I were to report my outside scholarship, will my grants be reduced, or will the amount is reimburse to me? I am borrowing $5000 in loans and need to know which the financial office going to do. If they're reducing $1000 off my grants, that means I still need to borrow $5000 in loans. If they're going to reimburse it to me, that means I only need to take out $4000 in loans. </p>

<p>I am going to call the financial office tomorrow, but I am curious about your experience with this situation. Thank you!</p>

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<p>Our DD had her grants reduced. Hopefully your school will be different.</p>

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<p>My D had the loans reduced.</p>

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<p>D goes to a school that does not alter it’s aid package for outside scholarships, as long as COA isn’t exceeded and there’s no conflict with the state rules for receiving the need-based state grant. However, this is not a meets full need school, so most students would have to put the money towards the gap. </p>

<p>You need to ask college as each will have it’s own policy.</p>

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<p>It looks like you are going to UT austin</p>

<p>they state the following:</p>

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<p>In short it will first reduce your self help aid. If you have a $5000 stafford loan, your loan will be reduced to $4000. You will not be able to reduce your EFC or PLUS loans unless you receive a scholarship that is more than your financial aid package.</p>

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<p>^ If a student’s self help direct loan in the aid package is reduced by $1000 as a result as a $1000 outside grant, the student could still take out up to the amount of the full direct loan ($5500 for an incoming freshman), correct? So, they still would have access to an additional $1000 for college, right?</p>

<p>Math is not my gift, so I am really asking the question. :)</p>

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<p>^ Yes. As long as grants + loans is not over the COA, you can take out the full direct loans.</p>

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<p>This is a great question, and I am glad for the responses. I just found out that I won a $2500 for each of my 4 years scholarship (so happy:) and it is nice to know that it could go towards my loans. I will call the school to make sure. I only received merit and competitive scholarship from my college, and a 500 TAP grant. Perhaps the 500 will be taken away, but that still puts me ahead. I wonder if I’ll still get work study? (3000 per year) Would work study hours be reduced in the event of an outside scholarship? Hmmm - things to think about now - but really good things!</p>