Question about Scholarship Money

<p>If a person receives various amounts in scholarship money, will the school they are applying for take that money and end up giving them X-that scholarship money they received.</p>

<p>So, for instance, if a person is going to get $10,000 from a particular college, but had already received $5,000 in other types of scholarships, will the school allow that person to have both moneys or will the school deduct the $5,000 from the $10,000 the college was going to give them?</p>

<p>Thanks.</p>

<p>It depends on the school. Some schools take outside scholarships and reduce the amount of aid they have given you...and they have varying ways the do this. Some schools will allow you to have aid up to the cost of attendance (including room and board) before they will reduce aid. You would need to check with the individual schools. However, in all cases, you must report outside scholarships you receive to the schools.</p>

<p>Most schools will determine your need and give you X amount of cash... it's much easier to understand with an example... </p>

<p>Say College U costs $25k a year to go to, and you get $20k in aid from that school. If you have no outside scholarships, the aid might come together like this...</p>

<p>Finacial Aid total - $20k
Self-Help (Loans/Work over the summer, paid by student) - $5k
Federal and State Grants - $5k
College U scholarship - $10k</p>

<p>Whereas, if you got, say, $4k in scholarships that would look like...</p>

<p>Financial aid total - $20k
Self-Help - $1k
Federal and State Grants - $5k
College U scholarship - $10k</p>

<p>Scholarships will not increase your total aid package (Unless you pick up so very big ones), but they will decrease the amount of debt you accumulate and how much you personally pay to attend.</p>

<p>Thanks to both of you for the information. I really appreciate it.</p>

<p>The major variables are how much the school reduces the aid package (some will reduce their aid by the full amount of the outside grant, some by half, some not at all) and which portion of the aid they apply it to. The latter is the tough part. Assuming your financial aid is a combination of grant money and loans, a reduction in grants from the college is a bad thing; you are just trading one source of cash for another. A reduction in loans is preferable.</p>

<p>Since each school varies, you'll have to ask the aid office what their policy is.</p>

<p>I've never understood schools that reduce their grants by the full amount of outside scholarships; it eliminates any incentive for the student to apply for outside money, write essays, etc.</p>