School says it won't touch grants, should I trust them?

Paying for College
1

I’ve heard horror stories of people getting outside scholarships and their aid being reduced significantly. However my school says it goes for your loans before anything else. Here’s the order they go in

"If you receive scholarship(s), they may replace your other financial awards in the following order:

  1. Unmet need in your basic California Resident award package
  2. Perkins Loan/University Loan
  3. Work-study
  4. Need based Parent PLUS Loan or additional Direct Loan in your basic CA resident package
  5. Direct Subsidized/Unsubsidized Loan
  6. Grants"

Something tells me that if I tell them I got an outside scholarship which, according to this chart should only knock off a university loan, work study, and a bit of the need based parent PLUS based on my particular package, they will STILL go for my need-based Grant.

Anyone have any experience with how an outside scholarship affected them?

2

If your school has those details stated in their policy - it is extremely likely they will stick to that policy, as they would have a large amount of angry students otherwise. Why do you think the school would do something deceptive like that, especially with a published policy? The policy above acts in the students best interest, which many schools are actually committed to.

3

If your outside scholarship is larger than the total of categories 1 through 5 (unmet need + loans + work study), then grants would be reduced.

4

Is anyone else surprised that they’ll take away a perkins loan BEFORE removing the need for a Plus loan?

5

^ I think it’s because a PLUS loan = not aid. It would be the equivalent of the parent EFC. Stafford loans should be 1st on that basis, though…

6

^ Not 1st, but before the “PLUS”

7

I’m just confused why there would be a Plus loan for unmet need if #1 already adresses unmet need.

But Norcal guy, it is fairly standard among generous colleges to allow you to replace student loan and work/study first. they will always leave your parent EFC to be covered by them only if outside grant replaces uni grant entirely. So yes I would trust them.

8

There is no such thing as a need-based Parent PLUS loan. Is that really what it says??

9

@kelsmom copied and pasted directly from their site.

10

Are you considering not telling the school? Don’t consider that.

11

@annoyingdad I haven’t officially received confirmation that I’m even getting the money yet. I sent in a signature accepting the award. Is that enough to report it to my school already?

12

^ Yes, since you’ve already been chosen to receive the award.