<p>One of my dd's top choices has offered her a generous financial package with a combination of need-based and merit awards. The merit money covers what otherwise might have been loans or work-study, so we need only to pay our EFC.</p>
<p>She has also been offered a few outside scholarships that are unlikely to give her any real benefit, since her self-help is already covered. The school won't allow the scholarships to be used toward the EFC; instead, the need-based grants would be reduced. The scholarships add up to almost one year's EFC for us, and they're one-time, lump-sum offers.</p>
<p>What should we do now?</p>
<ul>
<li><p>Decline the outside scholarships and ask the donors to give them to someone else.</p></li>
<li><p>Ask the donors to consider spreading the awards over four years to reduce self-help in future years if needed.</p></li>
<li><p>Ask the donors to specify that the awards could be used for "extras" such as summer study or study abroad.</p></li>
<li><p>Ask the donors to consider making the awards directly to dd without involving the school.</p></li>
<li><p>Accept the outside scholarships and allow the college to benefit from them, in appreciation of the generous aid that the school is offering to dd.</p></li>
</ul>
<p>I'm sorry...I'm no help...but in the same boat:</p>
<p>My D received $15,000 in grant money (need based) when she was accepted last week (tuition is $30k). Last night we find out she has been rewarded a 4year AFROTC scholarship that pays up to $15,000 in tuition.</p>
<p>I'm still waiting to hear back from the school if they will reduce the grant money...I have a strong feeling they will :(</p>
<p>As for your situation, I would let the program give it to another student..."spread the wealth" :)</p>
<p>Are the scholarships one-time, or do they cover four years?</p>
<p>I'd be concerned that if you accepted the one-time outside scholarships, causing your school to reduce their in-house grants, that they'd work from that baseline in the second year, perhaps adding in loans to cover the difference. I think I'd check with them and see how they handle year #2 under such circumstances.</p>
<p>If your need is completely met and they're going to reduce in-house grants, then it would be a very gracious thing for you to decline the scholarships. Hopefully they can be awarded to some other deserving student. You certainly wouldn't want to do anything to jeopardize your future financial aid offers.</p>
<p>This discussion should make one point clear: ask 20 questions if necessary when reviewing your financial aid with a University. I didn't realize until earlier this week that many schools will not allow a student to lessen the family's EFC through internal or even external scholarships. This was a big surprise to me. It appears (at least at the southern school I spoke with) that you're often stuck with your EFC -- and you have to wonder if it's really worth all the time & energy our sons & daughters devote to external scholarship applications.</p>
<p>stuck is not the right word. The expectation is that you as a parent are responsible to pay part of your child's education. The colleges give you aid with an expectation that your needs are met - you can afford and should pay your EFC. If you get outside scholarships, you do not need as much aid in the form of charity.</p>
<p>You can't use two coupons to get something for free. Only one coupon per person</p>
<p>Simba,
I'm not referring to "charity". I'm referring to National Merit funds set aside by Universities to attract NMF's to their campuses. I'm also referring to external scholarships that are awarded based on criteria such as a rigorous high school courseload, SAT scores, demonstrated leadership skills, personal essays, etc.
I don't want a dime of "charity'.<br>
My word to the wise is simply this: do not be afraid to ask multiple questions of the Financial Aid office. You'll be glad you did.</p>
<p>3TN,
Parents and students should fully research FA policies before even applying to a school. And it doesn't even take talking to the FA office, most schools clearly state their policies about outside scholarships on their websites. </p>
<p>I was telling my d the other day, this is potentially a 200k investment, there's no way I would leave it up to a 17 year old to figure out. It's irresponsible and naive to think you can just leave it to the end and hope that everything works out.</p>
<p>Apparently we also may need to ask 20 questions of the scholarship providers. I'm sure some of them have encountered this situation before. I cross-posted this question on the Parents forum, and someone there said that Coke allows students attending EFC schools to ask for a computer or a bookstore charge account. (Coke, however, is not one of the scholarships my dd received.)</p>
<p>Each scholarship should indicate whether or not it can be applied to outside expenses (books, etc,). Many apply to tuition or self-help only. It wouldn't hurt to ask for clarification if you are unsure. I don't know if outside scholarships would negatively affect next year's EFC unless they were large enough to count as income (taxable?). We've been told that unless our EFC changes significantly, our grant/loan package won't change dramatically from year to year, save for the annual tuition increase to be expected each year. Most of the schools will divide that increase equally between grants and loans. So far. the financial aid offices have been very kind and patient in answering our many questions.<br>
BTW - we were surprised at the range of EFC from school to school - a $4300 difference between lowest and highest per year.</p>
<p>perhaps charity was the wrong word to use. The point I was trying to make is you can't/shouldn't minimise the amount of your obligation for your child' education. As someone mentioned it would be very gracious to decline and let others who need it receive the money.</p>
<p>I get annoyed when people use the term 'stuck' in describing their obligation - whether they are poor or millionaires who want their kids to apply for merit scholarships.</p>
<p>depending on the group, some have no problem stretching a scholarship out over 4 years. Others just make the check out to the student to do as they please. Are you sure the outside scholarships reduce grants BEFORE EFC? </p>
<p>I don't think that's the norm. Usually outside scholarships count against family, then workstudy and then grants. Merit awards usually are the last to have anything happen to them. </p>
<p>But it may depend on the school. Ask the finanical aid department head.</p>
<p>"The point I was trying to make is you can't/shouldn't minimise the amount of your obligation for your child' education"</p>
<p>That's BS. </p>
<p>Sorry just cause uncle sam said, we need to come up with x dollars, doesn't make it my moral obligation to do so. IF my kids EARN an outside scholarship or scholarships to reduce or eliminate that EFC, whose business is it? How is it wrong? There's merit and then there's need, two different animals. Turning back merit awards and then Paying out of pocket is well...stupid. </p>
<p>No, my dear the discussion is here about combining the two. OP and others feel that they are 'stuck' with the EFC. If you get more merit money that wipes out your need based aid and reduces your EFC good for you. </p>
<p>My dd has already accepted a couple of the outside scholarships, because the acceptance deadline came before she was admitted to the college. Perhaps she can rescind those acceptances if it turns out that the scholarships would harm her in the long run.</p>
<p>We attended a financial aid session at this school before she applied. The school said outside scholarships would be used first to fill any gap between the school's offer and the EFC, and then to replace loans or work-study. So it was a surprise to receive a package with no gap, no loans and no work-study.</p>
<p>My fear is that <em>next</em> year's financial aid package might be chock-full of gaps, loans and work-study. If so, it certainly would be nice to have those outside scholarships to cover the gaps. But I don't know how to "bank" them for that possibility.</p>
<p>Definitely request information about FA packages for years 2-4. I always suggest that you ask the financial aid department in an email, instead of over the phone. Any answer you get can then be referred to later, and you have PROOF of what you have been told. Opie, every school my kids apply to reduce NEEDBASED aid if my kids got outside scholarships. The outside scholarships did not reduce MERIT AID. If the merit aid is high enough to reduce the needbased aid to zero, then any additional merit aid is a net gain. Yes, the EFC sucks - but the colleges don't feel they should have to give you needbased aid if you no longer have need!</p>