Hi, I had a question about outside scholarships. So, if we got some, do they use it to take care of the loans or take it from your grants first? I’ve been getting conflicting information so I wasn’t sure. Thanks in advance!
It comes off the loans first, then the grants.
Loan and work study first before cutting grant.
Thank you! That’s weird then…my sister told me they took it out of her grants. 
Is she a freshmen? The FA package will be revised several times over the summer. The grant did go back and forth on my D’s freshmen FA package. In one of the revision, they replaced all loan and work study with grant. It did cut her grant later when there was no more loan and work study left.
Yes she was a freshman, and is not about to be a sophomore! She got some outside scholarships and said it never changed her loans, and the more outside scholarship she got, the less grant she was given…
Is it for the FA last year? Perhaps that scholarship is also need based or the grant has been bumped up by the school before the external scholarship.
Yeah, she just finished her freshman year at UMich and said they lowered her grants because of her scholarship in her financial aid last year. I’m about to start my freshmen year at UMich this year and I was just wondering about that so when she told me how they did it for her, I just got confused?
I bet they increased the grant initially before seeing the external scholarship. Or that scholarship has a restriction on it. Indeed, one of the scholarship my D received from the state would just replace Michigan grant due to that restriction rather than school policy.