<p>Nope! Since the merit scholarship has to be applied to reduce the need first.</p>
<p>Let me extrapolate (ooo, SAT word):</p>
<p>Cost: 40,000
EFC (which you didn't report, but I will assume is): 15,000
Need (Cost - EFC) = 25,000</p>
<p>Ler's say you have a $5000 student loan and a $20,000 need based scholarship. If you get some 1/2 tuition merit award, I have to fit that in your need somewhere, so most colleges will reduce your loan first and then your need-based scholarship 2nd. </p>
<p>They can only touch your EFC if your financial aid is completely wiped out by the merit. As an example, if you got a merit award for $30,000 in this situation, the first reduction would be to the loan (probably), the next reduction to the grant, and then the final $5000 could reduce what your parents (and you) have to pay...</p>
<p>See <a href="http://daniel.mitblogs.com/archives/2005/10/myth_5_the_more.html%5B/url%5D">http://daniel.mitblogs.com/archives/2005/10/myth_5_the_more.html</a> for a more detailed picture of how this works.</p>