I noticed in some of D’s financial packets that we are supposed to let the universities know about scholarships that she wins and that “such assistance will result in a reduction to a need-based aid package.” This is so discouraging. D has been applying to school and community scholarships with the hope of winning anywhere between $1000 and $10,000. What’s the point in applying to these if the schools are going to raise our tuition if she gets them? Or are they not referring to these smaller scholarships?
They aren’t going to raise your tuition, what they will do is reduce your need-based financial aid. It might be semantics, but the distinction is important. Many schools will use outside scholarships to first offset loans and work study, so in that sense outside scholarships are beneficial.
And they are referring to all outside scholarships, not just the larger ones.
@MiddKid86 Thank you for your response. That makes sense.
The only time your EFC would change is if DD received enough outside scholarships that exceed the college’s contribution. Someone please correct me if I’m wrong.
If you’re talking about FAFSA EFC, then I believe that you’re wrong.
They all need to be reported. D’14 received an outside scholarship that made her ineligible for state aid. While it does seem like a wash, them’s the rules. The state will not award money if need is met through other avenues. Not to report the money would have resulted in (essentially) stealing the grant aid from the state as we no longer qualified.
We do pay less than our FAFSA EFC because none of d’s aid is awarded based on need.