<p>If you are awarded a certain type of scholarship from a college, do you get that scholarship plus the financial aid you would have recieved, regardless of the scholarship? Or does the scholarship lessen the amount of aid you are going to get? For example, does a $10,000 scholarship mean you get an extra $10,000 with your financial aid or is the $10,000 just factored into it then? Thanks!</p>
<p>I believe that if the scholarship is addressed to you, then it shouldn't be a problem, but if your colleges already know, then they will most likely factor in the 10k since other kids need money too.</p>
<p>Your need is reduced by any scholarships you receive so scholarships will reduce your aid package if your full need as calculated by the school, has been met. Most schools will reduce self help such as loans and work study before they reduce grants. </p>
<p>Most schools require you to report all outside scholarships to them.</p>
<p>When my daughters GC gave a talk to the parents, he said the reason a lot of scholarships aren't taken (besides laziness and lack of info) is that if you have need met with a grant, the scholarship just replaces it most of the time. For example if you received a 10,000 scholarship from Bates and a 5,000 grant and loans and then you won a 4,000 scholarship that is sent to the school, many schools wouldn't replace the loans, but take 4,000 away from the grant. I realize this varies by school, but I've heard cases where this has happened. It doesn't seem right the loans would stay, but you have to check the colleges policy. I would hope most wouldn't have this policy, but it doesn't hurt to check since it does happen. I don't know if it matters if it is state/private.
He said the exception is the smaller scholarships, maybe from local business's and religious organizations, that are given to you. They are usually not large, because no one is going to give 5,000 to someone to use anyway they want and not be used for education. My D received a 500.00 one and used it for books.</p>
<p>FinAid</a> | Scholarships | Outside Scholarship Policies</p>
<p>I think your GC has given you wrong information (or at least confused the information that s/he has given you)</p>
<p>At most schools when a student receives an outside scholarship, their self-help aid (student loans and/or work study) is first reduced. </p>
<p>using your example: </p>
<p>
[quote]
10,000 scholarship from Bates and a 5,000 grant and loans and then you won a 4,000
[/quote]
</p>
<p>This would not be a totally accurate scenario because </p>
<p>Bates is a school that meets 100% of your demonstrated need and only offers need based FA (no merit $$). Not counting the EFC (which you & your child would be responsible for paying) the need based FA would have components:</p>
<p>Grant/scholarship aid (they do not offer merit $$ only need based FA)
work study
loans</p>
<p>The Cost of Attendance at Bates is $51,400 ($49,350 + $2050 in misc.expenses)</p>
<p>
[quote]
Lets say your family has an EFC of $20,000 (YMMV)</p>
<p>You have a demonstrated need of $31,540</p>
<p>Your demonstrated need would probably be met as follows(again YMMV):</p>
<p>Scholarship/Grant aid $25,990
Work study $2050
Stafford loan $3500</p>
<p>Your child wins an outside scholarship of $4,000</p>
<p>You/she can choose to have the scholarship applied to the loan (3500) and the balance to reduce her work study (500) , which will now be 1550</p>
<p>You/she can choose to have the scholarship applied to the work study (2050) and the balance to reduce her loan (1950) , which will now be (1550)</p>
<p>You/she can choose to have the scholarship applied to the work study (2050) and the balance for the one time purchase of a computer
[/quote]
</p>
<p>Your D would have to get an outside scholarship that covers all of her loans & work study before Bates would start reducing her grant aid.</p>
<p>hope this helps.</p>
<p>Gaby - that is the opposite of what i have heard. The majority of schools will replace loans and work study before they reduce grants. There may be exceptions to this but from what we have experienced (D got a bigger scholarship after her finaid award letter and it reduced her loans) and what I have read here on CC most schools will apply the scholarships first to loans/WS. It is always best to check with schols for their policies.</p>
<p>The other thing to consider is that increases in income and assets may reduce need based aid in future years while renewable scholarships will not be affected (as long as any requirements to maintain the scholarship - GPA etc, are met).</p>
<p>My experience with both institutional and outside scholarships has been the same as swimcatsmom's. I also urge you to call the specific school as policies can differ between colleges.</p>
<p>Every school is different, but as others have noted, self help component is <em>usually</em> reduced first. Who wouldn't prefer less loan?! Actually, if the sub loan is reduced, that in effect increases unsub eligibility ... that is, it increases the possibility of borrowing an unsub loan to help pay the EFC.</p>
<p>I heard something similar, but I think the parents were complaining because they wanted their end covered,not the 2 sub loans. (they were the students debt, not out of their pocket) Still, as noted, it's nice to have. This story was a few years old, but the option to have the loans stay and their contribution lessened, wasn't there. I think this was UConn or a private college in CT, but I can't remember.....was overwhelmed with all the various stories at the time of highly differeing aid packages and outcomes.. I know some students probably wish they could use it for books, etc. but it's always nice to have.
I also remember a young woman who said she worked so hard for this scholarship, she wrote a great essay, etc. and then realized she couldn't use the money toward her expenses. THAT, was partly her error, you have to look into the small print beforehand and ask questions at your FA office, never assume anything.</p>
<p>Sorry for a misunderstanding with the college, I was just using Bates as a name, not with knowledge of their policy, I should have said that.
I understand the policy at many colleges is to reduce loans, but as the financial aid sites will say, their policies can be different and some students are disapointed in not understanding the money can't be used as they would like it. At this meeting, some parents were upset as was mentioned above, their contribution stayed the same and they weren't able to give less. Also I remember a Clark student (?) saying her grant was replaced by her large scholarship and her parents still had to pay 20.000 or so.....they had been so proud she won it and then the school kept their money and used hers. Now this might not be every college or maybe she left out some details, but the bottom line, is most scholarships are a good thing but do check with your FA office how they will apply them if you are lucky enough to win.</p>
<p>Gaby - it is true that, when there is need based aid, scholarships will mostly reduce the aid as the student's financial 'need' has been reduced. The Scholarships will not usually reduce the EFC unless there is no need based aid. Federal regulations dictate this. The federal EFC plus scholarships plus federal aid cannot exceed the school's COA.</p>
<p>ONe caveat, my Dds school said it reduced self help aid first (loans & work study) but when we reported a few hudred $ in merit money, they reduced her grants. I only knew this because I had already printed the offer in the prior spring so when it changed in August I recognised it. I asked, they fixed that, but I would never have known if I had reported the info up front, so it is easy for them to make a small mistake which affects you in a big way! </p>
<p>I have never had any problem getting corrections, but it is kind of like calling about a problem on a cell phone bill, I have to thoroughly understand the situation to explain it to the person on the phone and get the desired result.</p>