I believe most schools have to follow Federal guide lines about external scholarships. For examples
Rice Outside scholarship
https://financialaid.rice.edu/Content.aspx?id=40
Outside Scholarships are non-Rice funds received from a third-party source. It is crucial for Rice to know of any outside scholarships that you expect to receive. These scholarships are first used to replace self-help aid in the need-based package, such as loans and work study.
SMU Off-campus scholarships
(http://www.smu.edu/Admission/AcceptedStudents/FinancialAid/ScholarshipsAndAssistance)
If an adjustment to a need-based financial aid package is necessary, the outside scholarship will be used first to replace a student’s earnings expectation, Federal Work Study and Subsidized Stafford loans before reducing SMU need-based assistance
So is it best to say the ideal amount external scholarship should be less than or equal amounts of (Work Study + Sub Loan)?