What good are outside scholarships?

<p>What's the point of applying for outside scholarships if they can't be used to cover the gap between a school's financial aid package and the cost of attendance. At Duke, for example, I got a $33,000 financial aid package, and it costs $46,000 to go there. Well, I want to use my outside scholarships to pay the remained $13,000 that isn't covered in the financial aid package. How am I SUPPOSED to pay for the gap; my parent's can't afford $13,000 per year. ***???? It's like they made it so that I have to take out loans and I have to have a debt. What do I do?</p>

<p>I didnt know you coulnd't use outside scholarships to fill the gap. What the hell...our government...or better yet...current administration needs to re-think this.
<em>sits at her desk mad now</em> lol</p>

<p>I don't think it is the government, it depends on the school and what kind of financial aid package you have.
Academic scholarship: you likely could keep the whole amount, because it is an award type thing based on merit.
Need Based scholarship: since it is based on your need (COA minus EFC)and you got the outside scholarship, your need is lower so they reduce it.</p>

<p>Different schools have different policies. Some use them to reduce grants/scholarships (since your "need" remains the same). Others let you apply them to other aid items, like loans or work study.</p>

<p>Some do a split, e.g., they apply half to their aid and half to your EFC. I think that makes sense - it keeps students motivated to look for outside aid.</p>

<p>First, outside scholarships are helpful. However, in order to reduce your EFC, you'd have to replace all financial aid. There are regulations that prohibit schools that offer federal aid to allow other help to reduce the EFC. It's also helpful to use the correct terms as the EFC is the amount that is determined by the processors of the FAFSA. Once a college's Financial Aid Office has your Expected Family Contribution, they will determine how much financial aid you may be eligible for. Every Financial Aid Office uses the same formula to determine your financial need:</p>

<p>Total Cost of Attendance - EFC = Financial Need</p>

<p>If your Financial Need is not covered entirely, this difference is called your UNMET need. </p>

<p>If you earn outside scholarships, the financial aid office will allow you to replace unmet need and non-grant financial aid, but may also reduce a portion of the grant aid.</p>

<p>Yes, we are irritated about this too. For one thing, the Ivies don't participate in the school-sponsored type of National Merit awards. This seems pretty silly since if you're smart enough to be a National Merit Finalist, you are probably applying to Ivies. Secondly, it's risky to count your chickens before they're hatched. Most scholarship programs my son has applied for announce the winners in late May or June, so he really can't factor that potential money into a decision about whether he can afford to attend a particular school before the May 1st decision day. Third, as UltimateFrisbee points out, the system removes the student's incentive to work hard. The minute you earn more, your EFC goes up. If you "win" more you could far a little better, since somes colleges will first apply that outside scholarship money to reduce loans or work study. But some policies say that if the scholarship is large, then they will reduce the grant aid they are giving you by the scholarship amount. This seems unfair. I'm not sure why it should matter to the school whether you get the money from working at writing essays and filling out applications, or working at McDonald's, or taking out loans, just as long as you pay them what you owe. But they do seem to prefer for you to take out loans, while simulataneously lecturing you on not getting too deeply indebted.</p>

<p>Congratulations. You are the next victim of the dirtly little secret that no one hocking scholarships talks about.</p>

<p>And keenya, this isn't the current administrations fault. This is the way it has always been.</p>

<p>Just to clarify, when I said some colleges apply a portion of the scholarship to reducing your EFC, I wasn't referring to the FAFSA EFC but rather the amount they expect the family to come up with.</p>

<p>go to WashU, they let u keep your outside scholarships and don't retract from ur university aid :-D</p>

<p>If outside scholarships can first be used to reduce loans and work study, they can be helpful. My older son was able to decline all his freshman year loans and reduce loans other years due to outside scholarships. So he graduated far less in debt than most college students. Thus, sometimes the smaller scholarships can actually help more than the big ones.</p>

<p>The whole Need Based Aid Thing is Communism. Whatever happened to American know how and hard work? The Commies have made it better to load up on debt for a McMansion, spend every penny on a Hummer and gas and lay back and forget about proving scholastic achievement! If you have good credit, and low debt, just go to a private college and they'll put you in the same place as everyone else!</p>

<p>Take the middle class for everything they have! </p>

<p>I don't think we can do anything except really support the few schools who do support merit aid. From our middle class suburb, most students are finding that the public universities, in state or out of state, are the best alternatives. The privates really want the rich, no matter what they say in their brochures.</p>

<p>Sorry, but I speak the truth!</p>