<p>My D accepted a spot at a 100% aid private college, which offered her a strong package. Meanwhile, she just found out yesterday that she was selected for a $5K a year national outside scholarship. We were surprised, and thrilled at the recognition for her, but because this college applies outside scholarships to reduce self- help first, then reduces their own grant, it won't really "help" us pay the bill.</p>
<p>The financial aid office say they do this because it is a 100% aid school. It is possible she may receive anotehr couple of smaller, local outside scholarships too.</p>
<p>I realize many schools do this, but not all of them. My older daughter's private college met more than her need with merit, etc., and still applied her outside scholarship to reduce our bill.</p>
<p>So is it a law, or just a standard practice of some schools, to reduce their own grants with outside scholarships ?</p>
<p>It is just a practice at many colleges that provide need-based help. </p>
<p>If a student receives outside scholarship, colleges reason that need is decreased and therefore they decrease need-based help.</p>
<p>When they calculated your EFC, it was without that $5K. Now, oops, your “need” is $5K less than it was on Sunday. Schools only have so much to dole out, particularly with the current economy, and they see that $5K as money that can be used somewhere else or for someone else. It sucks from your perspective, but it’s understandable from the school’s perspective.</p>
<p>That $5000 outside scholarship reduced your need by that amount. The school that meets 100% of need is not obligated to meet your family contribution. Because your child got an outside scholarship (and BTW…congratulations…that is great)…your grant will be reduced by the school.</p>
<p>Yes, I guess it makes sense. Don’t think it would bother me if it were a smaller amount, but $5K would have made a serious dent in that parent contribution! Oh well…</p>
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<p>Yes it would have…but the colleges do not fund the parent contribution.</p>
<p>Still…it is a good thing. Your child will get this award each year…it sounds like it is NOT dependent on income changes.</p>
<p>Umm… you just said that it removes from self-help first. Self-help (loans) should not be in financial aid packages. Anyone can get debt, it requires something special to receive free money.</p>
<p>So that $5,000 will first be removed from loans (ie, money that is coming from your pockets eventually). So really you guys got out REALLY well in this situation. Less debt.</p>
<p>How much was the “self-help” component of the original aid package? </p>
<p>Does eliminating “self-help” now mean that your D doesn’t need to find a work-study job? Does it now mean that your D isn’t expected to make money in the summer, or to take out certain loans? Well she still can get a part-time job during the school year, and/or a summer job, and/or take out Stafford Loans but now those funds can be used to reduce part of the parents’ expected contribution. In other words, it still is a benefit over-all.</p>
<p>In our case, one scholarship was useful to fulfill the work-study, the student’s contribution to the cost. The rest of the scholarships simply reduced the aid. My inference was that the school still expected the family to contribute what the university considered was fair. I believe it is entirely reasonable.</p>