<p>I have a question. How are academic scholarships considered in light of the EFC from the FAFSA? For instance, lets say a college's costs are at $30,000, the student is granted a $10,000 scholarship from the college and the EFC is $15,000. For further financial aid, is the scholarship added on to the EFC or subtracted from it. That is, the aid plan from the college possibly says that the parents need to come up with $15,000 or with $5,000? I know that EFC's are generally high and colleges may not necessarily accept that high level, but for the sake of this example, what is your impression what would happen? Or is this simply a college by college situation?</p>
<p>The cost of attendance (COA=tuition+room+board+fees+misc., determined by the school) less the EFC is the "need." Merit scholarships are subtracted from the need, and if there is any need left (this is your "gap"), financial aid can be awarded up to the amount of the gap (not all schools will award enough financial aid to fill the gap).</p>
<p>In the example you gave, COA = 30k. COA - EFC = $30,000-$15,000. This leaves a need of $15,000. $15,000-10,000 scholarship = $5000 gap. Most likely, the gap will be filled with a $3500 Stafford Loan (might be subsidized, meaning interest does NOT accumulate during school; if unsubsidized, interest will accumulate during school) and possible work study. If a school really wants you, it's possible they might throw in a grant, but don't count on it. </p>
<p>If you receive any need based aid, your scholarship will NOT be used to replace EFC.</p>
<p>Let me clarify that last comment. By law, the need must be computed by taking the COA less the EFC. If you receive any federal aid (loans, work study, Pell, SEOG, possibly state grants) the school is not allowed to compute that by reducing your EFC (or replacing it with a scholarship).</p>
<p>what would happen in a scenario like this? COA $40K, EFC $30K, Need = $10K -- but students receives $15K merit award? would the EFC be reduced in this case?</p>
<p>Merit is merit. If it's not tied into need at all, then you'd get the full amount of the scholarship. Since that amount exceeds the definition of need, you would not be eligible for any financial aid. You could always get a PLUS loan, though.</p>
<p>Basically, EFC is what you are expected to pay. No financial aid can be awarded to cover any of that amount. Merit aid that has no need component can be awarded in any amount, regardless of EFC or need. Is there are particular scholarship you are thinking of? Maybe I can help you interpret the guidelines.</p>