Will an outside scholarship reduce the financial aid package I receive from my school?
Maybe, but they can still help you build toward a financially stable future. Here’s why:
Schools require students to report the outside scholarship money they receive to the financial aid office, and there are federal laws requiring schools to reduce financial aid packages if students earn scholarship money beyond their monetary need, as determined by the FAFSA. (This is done so that funds can be doled out to students who still have needs.)
However, many schools have policies that allow students to first apply outside scholarships against student loan packages, then, if there are still fund available, against their institutional grant. This way, outside scholarships help reduce the amount of student loan debt the student is responsible for after graduation before they take way from college-provided grant money.
For a complete overview of how your school treats outside scholarship funding, contact their financial aid office.
Posted in: Student FAQs