Outside Scholarships and Financial Aid

I’ve been accepted into Rice as part of the class of 2020, and while I am expecting a substantial amount of aid from Rice, there is still a decent amount left as EFC. I’ve been applying to scholarships to fill this gap, but on the Rice financial aid site it says “Outside awards are considered resources and will reduce the amount of need-based financial aid you are offered in the initial financial aid package.”
Does this mean that if I earn a $5,000 scholarship Rice will simply reduce my financial aid by that much, or perhaps only a portion of the amount? If they just reduce your need based aid then is there even a point to apply for scholarships? I’d appreciate someone’s input.

Thanks

We went to Rice openhoue last September and we specifically asked financial aid person this question and the answer is yes, what ever merit based scholarship you got will reduce your needed based aid and it is the same for most of private college if not all. I know it does not make any sense at all, it only benefit people who totally can not qualify any needed based scholarship. It is the sad fact for middle class, you are too rich to get enough needed based aid and you are too poor to afford the the EFC. You either be very poor or very rich. It hurts to be middle class.

I would say that there is still a point in applying for scholarships. On Rice’s website, they say that outside scholarships will decrease need-based aid in the following order:

Federal Stafford Loan (Subsidized)*
Federal Perkins Loan*
Federal Work-study*
Rice Tuition Grant
Other institutional need-based grants/scholarships
State and Federal grants*

So while it looks like your family will still be paying the same amount each year, your loans will be reduced by however much you earn in scholarships. That’s better than having a bunch of loans to pay off once you graduate.

@Swinter @Bossof9000 Thank you for your advice. It’s a bummer that my parents may have to pay the EFC, but I guess scholarships could get me enough money so I don’t need to do work study.