outside scholarships to lower EFC?

Paying for College
1

<p>Is it true that federal regulations stipulate that outside scholarships cannot be used to cover the family contribution? That it can only cover student loans and work study (and unmet need if the school doesn't meet 100%)?</p>

<p>The graphic here (<a href="http://daniel.mitblogs.com/archives/2005/10/myth_5_the_more.html%5B/url%5D"&gt;http://daniel.mitblogs.com/archives/2005/10/myth_5_the_more.html&lt;/a&gt;) explains (sort of) the topic that I am asking about. I don't think this is exclusive to MIT though.</p>

<p>Any information would be great! I'm quite confused. I was always under the impression that outside scholarships would cover EFC before reducing grants...</p>

2

<p>You need to check with the individual schools. Policies regarding outside scholarships vary from college to college. Some schools will reduce your loans, others will reduce your merit aid. We had one college that allowed finaid from any source as long as the total didn't exceed the cost of attendance. Check with the schools.</p>

3

<p>There are rules concerning the use of outside scholarships replacing federal dollars. The feds require that their money be replaced by scholarship money. Most schools then start right in on the non-federal money.</p>

<p>In many (want to say most) instances, outside scholarships are waste of time.</p>

4

<p>Byrd scholarshps are considered family contributions.</p>

5

<p>certain university related scholarships also do not reduce grants, there are 2 questions to ask:
1} Can this scholaship be used to replace loans & work study?
2} If it is big enough, after #1, will it go toward EFC?</p>

6

<p>If it comes through the college... it's good.</p>

<p>If it comes through a source outside the college... it's a waste of time... most of the time.</p>

7

<p>Unless you're not eligible for need-based aid at all. Then outside scholarships can and do help. But when you look at the numbers, they don't help very many, very much. The much much greater pot of $$ is in the need-based aid coffers.</p>

8

<p>For most 100% need based schools, outside scholarships reduce the school's grant before reducing the family obligation. At Harvard, they first reduce the student obligation ($3500 or so), then the school's grant, and last the family obligation.</p>

9

<p>no outside scholarships typically do not decrease EFC
however searching and applying for scholarships IMO increases "buy-in" by the student
Scholarships won can be added onto resumes boosting chances.
My D only won a few outside scholarships, but they resulted in not only award lunches, but getting her work published- a nice little ego boost.</p>

10

<p>so Byrd scholarships reduce EFC?</p>

11

<p>I think it depends upon your school, but most seem willing to use Byrd for replacing loans, etc.</p>

12

<p><a href="http://blog.earnscholarships.com/%5B/url%5D"&gt;http://blog.earnscholarships.com/&lt;/a&gt;&lt;/p>

13

<p>Wish we knew this a few months ago, when DD was stressed out over scholarship applications along with college essays. If she goes to the state schools she's applied to, she'll likely have to return private scholarship money as she's already won merit scholarships to cover costs, but if she gets accepted to one of her reach schools (all need based aid), we still can't afford it because it won't reduce the EFC.</p>

14

<p>Outside scholarships can often be used to reduce "self-help" first (student loans, work/study,), but after that, most schools use outside scholarships to reduce grant aid.</p>