Outside Scholarships' Effect on Financial Aid?

<p>If I receive outside scholarships like NM or local awards, do they count toward family contribution, or will schools just reduce the amount of assistance and scholarships they offer you?</p>

<p>they do not go towards reducing family contribution (unless school gives you merit scholarship)</p>

<p>You need to check with your school. For merit aid, some will allow you to apply it to the family contribution while others will take some amount out of the aid to balance.</p>

<p>Erin's Dad -- do you know any schools that allow outside scholarships to be applied to the EFC? That would be helpful info to many people and I don't know of any. thanks!</p>

<p>At Dartmouth, outside scholarships are applied to first to the student contribution (reducing the work-study portion of the financial aid package), then to the EFC if applicable. I haven't looked into it for other schools, though.</p>

<p>Re Dartmouth:</p>

<p>Outside Scholarships</p>

<p>We encourage all students to explore resources from outside agencies. If a student receives an outside scholarship, his or her self-help component (work and loans) is reduced. Frequently the outside scholarship can reduce or eliminate the summer expectation earnings. Students can begin exploring outside scholarships by visiting their college counselor or by visiting </p>

<p>Also see <a href="http://www.dartmouth.edu/apply/pdfs/Outside_Scholarship_Form.pdf%5B/url%5D"&gt;http://www.dartmouth.edu/apply/pdfs/Outside_Scholarship_Form.pdf&lt;/a&gt;&lt;/p>

<p>The same is true of Denison. Any additional scholarships will be added to merit awards from the U.</p>

<p>thanks -- that is good to know. any other schools?</p>

<p>xiggi: That is what I meant by "student contribution" (I forgot to mention loans, though). If the scholarships exceed that amount, the rest is applied to the EFC.

[QUOTE=sybbie719]

This is dartmouth's policy on outside scholarships:</p>

<p>Quote:
"How will my financial aid award be adjusted if I receive an outside
scholarship?</p>

<p>Students who receive scholarships from external sources can use these funds to reduce the loan and/or job portions of their financial aid packages. If the outside scholarship is greater than the self-help level, the family responsibility can also be reduced to the federal level. (In most cases, outside scholarships do not reduce the Dartmouth family contribution.) Alternative student loans can be used to replace the self-help component (job and/or loan) of the financial aid package or replace the family contribution."</p>

<p>using the same example:</p>

<p>If you got 6,000 in out side scholarships, this is how Dartmouth would apply it:</p>

<p>they would wipe out your self help portion of $4,550 (the loans and the work study, you would just get a check for the work study earnings)</p>

<p>then they can reduce your EFC by $1,500.<a href="posted%20%5Burl=%22http://talk.collegeconfidential.com/showthread.php?t=323419%22%5Dhere%5B/url%5D"&gt;/quote&lt;/a&gt;&lt;/p>

<p>Camelia, you have to be careful not taking quotations out of context and mixing apples and oranges. The situation of a student receiving financial aid as a non-FAFSA filer might be different from 99% of the students. Fwiw, the EFC should refer ONLY to one term and that is the Federal EFC. </p>

<p>"If the outside scholarship is greater than the self-help level, the family responsibility can also be reduced to the federal level." says it all.</p>

<p>thanks Xiggi for the clarification.</p>

<p>But since the EFC includes both a parent and a student contribution (which is the summer expectation earning), using the example that Camelia posted from my posting on the Dartmouth board and your post # 6</p>

<p>
[quote]
using the same example:</p>

<p>If you got 6,000 in out side scholarships, this is how Dartmouth would apply it:</p>

<p>they would wipe out your self help portion of $4,550 (the loans and the work study, you would just get a check for the work study earnings)</p>

<p>then they can reduce your EFC by $1,500.

[/quote]
</p>

<p>The extra $1500 from the outside scholarship would reduce her student contribution from $2500 to $1000 and while the parent's EFC would not go down, the student contribution of the EFC(summer expectation earnings) would be reduced there by "reducing the EFC" (I know that it is all semantics :) )</p>

<p>Sybbie, I agree that is is semantics. In so many words, the unfortunate part of this small debate is that the FEDERAL EFC is confused with the figure that is often labeled as Estimated Family Contribution when including the self help, which is part of your financial need.</p>

<p>Obviously, it is easy to understand the confusion when sites such as finaid.org posts this:

[quote]
Expected Family Contribution (EFC) Calculator
This form is used to calculate the Expected Family Contribution (EFC) and financial need, and to estimate your student financial aid. Choose "Federal Methodology" to calculate your expected family contribution (EFC) and financial need using the Federal Need Analysis Methodology used by the Federal processor and school financial aid administrators. Choose "Institutional Methodology" to get an estimate of your financial need using a formula similar to the one used by many private colleges and universities

[/quote]
</p>

<p>Of course, this is different from:
[quote]
When you apply for federal student aid, the information your report is used in a **formula, established by the U.S. Congress, that calculates your Expected Family Contribution (EFC), an amount you and your family are expected to contribute toward your education. If your EFC is below a certain amount, you'll be eligible for a Federal Pell Grant, assuming you meet all other eligibility requirements.</p>

<p>All Federal aid is determined using an EFC calculated by the Federal Methodology. ** Schools can award additional non-federal aid using either the Federal Methodology or by using an Instititutional Methodology. The calculators below can calculate either of these methods.

[/quote]
</p>

<p>Semantics, perhaps. :)</p>