<p>Ok i just got this letter saying i won a merit scholarship but also saying that the merit scholarship will lower my other aid. So how does this work exactly. Ok so if i won 10,000 and my original need-based package was like 13,000 does this mean that now my need-based aid will be 3000 (these are just random numbers). If so then what is the point of winning merit aid that is less than your need?</p>
<p>It can reduce your loans. So say you have 20,000 in loans. You get 10,000 in merit. It could slice your loans in half. I don't know much about the financial aspect, but that's at least what I read from an article in a magazine about admissions.</p>
<p>i would actually prefer getting the low interest loans from the school rather than borrowing more privately.</p>
<p>You don't get it.......Total Cost less merit aid less grants/loans. What are you talking about private loans? The point is OPM.</p>
<p>ok i guess i need to clarify i meant that if the merit also takes away from grant aid then what is the point if loan stays about the same; heres a better example. Say i was originally expect a 20,000 aid package at a 30,000 school with 10,000 being grants and 10,000 being school or fed loan. Now say i get 10,000 in merit and it changes my package to say. 10,000 merit + 2,000 grant + 8,000 loan= 20000. in that situation what is the point in the scholarship if i was going to get 10000 in grant anyway. I mean was it really worth the work to get the scholarship?</p>
<p>You are amazing. Firstly you need to check w/ your specific school for their policy. What outside scholarships do at many schools is remove the school paying the grant to you. They may apply it to grants first and then work study. Each school is somewhat different. Some schools don't take away your total grants but will reduce work study requirement from your package. If you don't like the way the school applies it take your merit award to another school whose financial package you like better...it is that simple. As I recall you are plannning to attend a state school? IU or Purdue??</p>
<p>ok i think the question just needs to be changed.... when you recieve a merit award do most schools just adjust your total package to include the merit aid and change your amounts of loans and grants. Meaning that your getting 20,000 with or without the merit and in both situations you are going to end up paying the same out of pocket. And i meant merit aid from the university not a private source. The school i plan on attending is ohio university-athens and i have no idea what their financial policy is. I sent them an e-mail about something two weeks ago and i still havent received a response so i thought it would be quicker to post here rather than e-mailing them</p>
<p>Yes, a merit award will reduce need-based aid, if the original offer met need, because total aid given cannot exceed your established need. (if need-based aid is included) However, most schools will take at least some of that off the loans or work study, rather than just reducing the grant amount. If a school does not meet need, then the merit aid will not necessarily eliminate an equal amount of need-based aid.</p>
<p>For example, my son received loans and work study in his original financial aid package. These were short of meeting need by at least $6000. When the school later added a $4000 merit grant, it did not reduce his other aid at all. So a lot depends on whether the school is one that meets 100% of demonstrated need.</p>
<p>Your school will have a policy as to how they allocate the merit aid in you Financial Award Package. I would physically pick up the phone and speak w/ the financial aid office and have the policy explained to you. You might pose several scenarios and get answers on those as well......who knows you may also get "outside" money before the time you arrive on campus. Good Luck</p>
<p>Terry,</p>
<p>First of all check the schools financial aid policy.</p>
<p>Many schools when you recieve an outside scholarship the school uses it to reduce the self help aid (loans and work study).</p>
<p>Using the scenario that you presented :</p>
<p>You attend a school that cost $30,000 (and meets 100% of your demonstrated need)</p>
<p>If your EFC is 10,000 you have $20,000 in demonstrated need.</p>
<p>Your package before the scholarship is as follows:</p>
<p>$10,000 grants
$8,500 loans
$1,500 work study</p>
<p>Total $20,000</p>
<p>If you get a $10,000 scholarship, it would most likely reduce your self help (the 8500 in loans and the 1500 in work study first). If your scholarship is more than the self help aid, then it reduces the grant aid from the school.</p>
<p>Susan is right that it could pay out differently if you attend a school that gaps (does not meet 100% of your demonstrated need)</p>
<p>Using the the same $30,000 school</p>
<p>IF your EFC is $5000</p>
<p>Your need is 25,000</p>
<p>If you are given the following package:(your school does not meet 100% of demonstrated need)</p>
<p>$10,000 grants
$8,500 loans
$1,500 work study
$5000 un met need</p>
<p>The school may allow you to do the following:</p>
<p>Apply $5000 to the unmet need
Reduce your loans by $5000 (instead of having $8,500 in loans you now only have $3,500)</p>
<p>hope that this helps</p>
<p>ok .. i think ill end up just making the call. thanks everyone</p>