Will Scholarships be adding to my COA or use to reduce my loans?

<p>Hello guys, I have $26,000 in COA.</p>

<p>Here is my finaid package:
Grants: $10,000
Subsidized Loans: $4500
Unsubsidized Loans: $2000
Total = $16,500</p>

<p>My mother and I are paying the remainder $9500.</p>

<p>I have a $1000 scholarship that I need to email and report to the financial aid office. I know That UT Austin reduces the loans first before taking it out of my grants. However, because my package ($16,500) is much less than the COA, I believe they will just add $1000 to my package without reducing my loans - thus, I only have to pay $8500 instead. </p>

<p>Do you guys think that will be the case? I want to make sure. The Finaid Office is closing soon, and I do not think my call will reach them on time (15+minutes on hold). Thank you! :)</p>

<p>It depends on school.</p>

<p>I would call the financial aid office and ask. As the poster above me stated, it varies depending on the school.</p>

<p>What is your EFC? Federal law does not permit any grants (other than PELL) or subsidized loans or work study funds to exceed NEED, which is defined as the School’s official COA minus your EFC. If UT fully met your need with that package, then the $1000 scholarship will go towards your unsubsidized loan (which you can still take out towards your EFC) and you won’t lose any of your package. If your need is $14500 and the school is just throwing in the subsidized loans because you are permitted to take them, then you will lose $1000 of your subsidized loans. Do double check on your school website what the order of dismantling UTAustin’s financial aid package is, but I do believe that it does start with unsub loans, then sub loans, then work study, then grants. </p>

<p>But it isn’t so much because your COA , which is the total official Cost of Attendance is more than your package, but because your NEED which is, I repeat, COA minus FAFSA EFC is not exceeded by grants, scholarship, subsidized loans, work study. Unsubsidized Student Direct loans can be taken out regardless of need, so they are not financial aid, strictly speaking, and they would be effected by COA in that there is the stipulation that you cannot borrow even unsubs if your COA is covered by financial and merit money.</p>

<p>My EFC is 0.</p>

<p>If your EFC is zero, then you are permitted to get as much money as the official COA, plus whateve your PELL grant is, as long as your college does not integrate PELL with their own awards, which most all colleges do. So pragmatically speaking, You can get up to COA in your case, and since UT did not meet full need for you, the outside scholarship will not reduce any of your aid. It will reduce what you and your family have to pay.</p>

<p>The school will probably reduce your loan of $1000. However, you will still be entitled to borrow the $1000 in stafford (direct) loans leaving $8500 that you and your mom will have to come up with to fill the gap not covered by financial aid.</p>