What's the point of applying for scholarships?

I am deciding between two colleges right now, Boston University and Columbia University (didn’t think I was gonna get in so BU was my top choice). They gave me similar financial aid packages. But as I was reading the bit about “outside scholarships” for both, it says if you win outside scholarships, first that goes toward my work study. And if it exceeds my work study then they will reduce need based aid. For example, Columbia is going to cost roughly $69,000 and Columbia gave me $44,000 and $3000 in work study and I’m left to pay $22,000. If I win lets say $6000 in scholarships, I no longer have to do the work study, but now they’ll give me $41,000, leaving my parental contribution the same of $22,000. It’s nice that I don’t have to work during the school year but i still have to pay the same amount. So should I even apply for scholarships if they’re just going to give me less grant money once I surpass the amount I need for work study? Or is there something I’m missing or not understanding correctly?

If there are loans in a FA package, many schools will use outside scholarships to first offset work study, then loans, and finally institutional grants and scholarships. In your case, using your example, a $6,000 outside scholarship will relieve you of the necessity to work while going to school. So that’s the point. But if you don’t think it’s worth it, then obviously don’t apply for any outside scholarships.

Did you get any Direct Loans in your packages? Usually outside scholaeships reduce self help first…so loans, and work study go forst…then grant money. Your family would still be required to pay their family contribution…can they do so?

@MiddKid86 But it’s not really that much.
@thumper1 At Columbia, they did not include any loans. My mom said she is going to try to work something out but I don’t want to burden her. Do you know why they don’t allow scholarship money to be used for family contribution?

The family is expected to pay the family contribution.

Need based aid cannot be awarded to reduce your family contribution. It is awarded to meet your need.

Any outside scholarships you receive actually reduces your financial need…and therefore your aid goes down.