Right now our COA at three universities is less than our EFC. All three have merit scholarships to be dispersed over four years. We are not expecting financial aid and are not taking out loans for the two universities being considered. If DS were to win an outside scholarship, does this affect anything? We are trying to save money in case there is a year five and we are without a merit scholarship (and our next child starts college). Any other recommendations for funding a year five if you have one of those four year merit disbursements? Obviously he could take a loan $7500.
You need to check with the different schools how they will consider an outside scholarship. If he is getting merit aid most schools will allow stacking. As far as funding a fifth year, save now with the funds you get. Pretty much just the loan is available (and maybe some small scholarships associated with his major). Or just tell him no fifth year.
We might have him take a loan during his 4th year if a fifth year looks likely. Just trying to plan for the worst case scenario hence trying to stack scholarships. Engineering seems to commonly have a 5 year rate. We might even choose our state school because of this since there would be no financial pressure with additional years. He could always commute and going abroad a year would still be possible.