<p>I know that outside scholarships change the college's financial package usually by first reducing loans/work-study but what happens when scholarships exceeds loan+work-study? Will it merely reduce the burden of the school in providing grants or will it cause the school to completely change their package so that EFC becomes more than it is calculated by FASFA in which case having too much scholarships become problematic? I really would like to know because I don't want to apply to scholarships if having too much of it would actually cause our family to pay more out-of-pocket. Thanks!</p>
<p>I would add that in MOST cases, your total aid cannot exceed the cost of attendance at the college. The only exception I can think of is a student who gets a full ride (tuition/room/board/fees) as a merit award, and still qualifies for the Pell Grant. That student WOULD get the Pell.</p>
<p>Heres an example that might clarify my question:</p>
<p>Cost of attendance: 60,000
Efc=10,000</p>
<p>Colleges meeting 100% aid package
30,000 grants
5,000 work study
15,000 loans</p>
<p>Amount of outside scholarships=30,000$</p>
<p>30,000-20,000=10,000 left</p>
<p>So will the college a) reduce their grant from 30,000 to 20,000 so you still have to pay 10,000 or b) recalculate ur EFC entirely so your EFC ends up being > 10,000 and thus actually makes you pay more out pocket as their grant is less?</p>
<p>Have you received a financial aid package yet? If not…just wait and see.</p>
<p>You need to contact YOUR college to find out their policy regarding outside scholarships. $15,000 in loans is well in excess of what a student can take. This sounds like the package includes a Parent loan. Most schools will reduce your loans first…then your work study. They will usually NOT reduce the parent contribution (that EFC). Some schools do something called “stacking” whereby all aid is stacked up to the cost of attendance. The school will NOT award you aid that exceeds the cost of attendance with the scenerio above…and they usually include the parent contribution (EFC) in the amount.</p>
<p>If the school meets 100% of need, then in your scenario, the school would more likely take away the loans and work-study…and then reduce the grant with what’s left of the scholarship. Family EFC would still be $10k.</p>
<p>The good news is that instead of your family having to pay $10k, you could get a non-work-study job and earn some of that $10k…which would reduce your family’s EFC.</p>
<p>You definately need to check with EACH school to determine how they handle outside aid and giving a specific example is helpful. It is good you are aware that MOST will reduce their aid package since you now “need” less. However, there are schools out there that allow ouside aid to reduce EFC. If your outside aid is as large as you suggest this could be a huge difference. Hope your first choice is one of the few. Good luck and congratulations on nice options</p>
<p>One thing I haven’t seen here is the acknowledgement that just because FAFSA EFC was determined to be $10,000 doesn’t mean that is what the school will calculate your family’s contribution to be. Your family will likely be expected to pay more than the FAFSA EFC no matter which school you consider. Just wanted to make that clear to the OP.</p>
<p>Thanks everyone for the helpful advice! @teachandmom Thank you for the reminder and yes, I prepped my parents mentally that the actual amount we have to pay might end up being as much as 2-3x( better to overestimate than underestimate) and they’ve agreed.But hopefully, it is less and I will do my part to help lower the burden.</p>
That’s not necessarily true either. At my son’s school, parent’s aren’t expected to contribute at all below a certain income level and it’s much higher than the $23,000 ceiling for 0 EFC from FAFSA.</p>