<p>Been reading for a while...thanks to all for info. Hypothetical equation...COA 40K EFC 30 K = need of 10K. Made up of work study, loans etc. If the student qualifies for merit of 15K, where does it get factored in? Is it taken off of the top? (40K-15K=25K now no need) Or, is it taken off after need? (30- 15= 15K out of pocket) In simplest terms, does need based aid diminish value of a merit award? I never attended, my first will soon. I feel very ignorant.</p>
<p>Generally, it's taken off the top - you have $15,000 less "need". Your need is determined as COA-EFC. In your example, you have a need of $10K. The merit aid will be subtracted first from that need, leaving you with a need of $0, and the remaining $5K in effect "reduces" your EFC.</p>
<p>Now, some schools do allow for outside scholarships to be applied against the EFC first, without reducing need. And some schools also allow for their own merit scholarships to cover the EFC while giving financial aid to match the need.</p>
<p>Check each school's websites, and call the offices to ask lots of questions.</p>
<p>That's kinda what I thought. On one level, it appears to devalue the academic efforts, depending on the COA and EFC...If I could afford the COA, 15K is really an award, but since i can't, I only benefit from 5K. But hey...It's for the kids, right?</p>
<p>Don't forget, though, that many merit awards are automatically renewable from year to year (assuming the student meets whatever requirements the award has), while you need to apply for need-based aid every year. Need based aid can change drastically, while merit aid generally doesn't.</p>
<p>With the current financial crisis, I'd expect that more schools would use your outside scholarships to reduce your need. And philosophically speaking, it really does, doesn't it? Your best bet for outside scholarships may be to get the donor to designate it for a special purpose (e.g. study abroad).</p>
<p>Not only philosophically....but socialistically too:)</p>