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Polina
Student
Overland Park, Kansas
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Do outside scholarships affect the FAFSA amount?
#financial-aid #money
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4 answers
Mary Valenzuela
Assistant Property Manager
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Gardena, California
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Mary’s Answer
Scholarships are applied to tuition first and then Fafsa will cover the remaining balance.
Sheila Jordan
Lead Network Proj/Prog Manager
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Atlanta, Georgia
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Sheila’s Answer
Hi Polina:
Yes. Getting an outside, or private, scholarship can reduce the amount of financial aid you get from a college. But that doesn't mean you’ll have to pay a bigger share of college costs. It just means that the scholarship dollars replace financial-aid-package dollars. Here's a great article on College Board.org for further research. Make sure to read all the material and navigate to the links as identified. Best of luck to you!
CollegeBoard.org • https://parents.collegeboard.org/faq/do-outside-scholarships-affect-other-financial-aid-awards
Yes. Getting an outside, or private, scholarship can reduce the amount of financial aid you get from a college. But that doesn't mean you’ll have to pay a bigger share of college costs. It just means that the scholarship dollars replace financial-aid-package dollars. Here's a great article on College Board.org for further research. Make sure to read all the material and navigate to the links as identified. Best of luck to you!
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Lindsay Williams
Award-Winning Enterprise Transformation | Humane People Strategy | Inclusion | Diversity | Enterprise Learning
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Lindsay’s Answer
Hi Polina, yes they generally do. You can find out by speaking with your financial aid office. Good luck!
James Constantine Frangos
Consultant Dietitian & Software Developer since 1972 => Nutrition Education => Health & Longevity => Self-Actualization.
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Gold Coast, Queensland, Australia
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James Constantine’s Answer
Hello Polina!
Understanding Outside Scholarships and FAFSA
Outside scholarships can have an impact on the FAFSA (Free Application for Federal Student Aid) amount, but the extent of the impact depends on several factors.
How Outside Scholarships Affect FAFSA
Outside scholarships can reduce the FAFSA amount, but only if they exceed the cost of attendance minus the expected family contribution (EFC) and other financial aid. This is because the FAFSA formula takes into account all sources of financial aid, including outside scholarships, to determine the student’s eligibility for need-based aid.
When a student receives an outside scholarship, the college or university is required to adjust the student’s financial aid package accordingly. If the outside scholarship exceeds the cost of attendance minus the EFC and other financial aid, the excess amount will reduce the student’s need-based aid, such as federal loans or work-study programs.
However, if the outside scholarship does not exceed the cost of attendance minus the EFC and other financial aid, it will not affect the FAFSA amount. In this case, the outside scholarship will simply supplement the student’s financial aid package, providing additional funding to help cover educational expenses.
Example Scenario
To illustrate this concept, let’s consider an example scenario:
Suppose a student has an EFC of $10,000 and receives a financial aid package that includes a federal loan of $5,000 and a work-study program worth $2,000. The cost of attendance at the student’s college is $20,000. If the student receives an outside scholarship of $3,000, the college will adjust the financial aid package as follows:
The outside scholarship will first be applied to the cost of attendance, reducing the student’s need to $17,000 ($20,000 - $3,000).
The EFC remains at $10,000.
The federal loan and work-study program will be reduced by the amount of the outside scholarship, to $2,000 and $1,000, respectively.
In this scenario, the outside scholarship does not exceed the cost of attendance minus the EFC and other financial aid, so it does not affect the FAFSA amount.
Conclusion
In summary, outside scholarships can reduce the FAFSA amount, but only if they exceed the cost of attendance minus the EFC and other financial aid. Students should carefully review their financial aid packages and outside scholarships to understand how they will impact their FAFSA amount.
Authoritative References Used: Federal Student Aid College Board Print: “Paying for College Without Going Broke”
God Bless You!
JC.
Understanding Outside Scholarships and FAFSA
Outside scholarships can have an impact on the FAFSA (Free Application for Federal Student Aid) amount, but the extent of the impact depends on several factors.
How Outside Scholarships Affect FAFSA
Outside scholarships can reduce the FAFSA amount, but only if they exceed the cost of attendance minus the expected family contribution (EFC) and other financial aid. This is because the FAFSA formula takes into account all sources of financial aid, including outside scholarships, to determine the student’s eligibility for need-based aid.
When a student receives an outside scholarship, the college or university is required to adjust the student’s financial aid package accordingly. If the outside scholarship exceeds the cost of attendance minus the EFC and other financial aid, the excess amount will reduce the student’s need-based aid, such as federal loans or work-study programs.
However, if the outside scholarship does not exceed the cost of attendance minus the EFC and other financial aid, it will not affect the FAFSA amount. In this case, the outside scholarship will simply supplement the student’s financial aid package, providing additional funding to help cover educational expenses.
Example Scenario
To illustrate this concept, let’s consider an example scenario:
Suppose a student has an EFC of $10,000 and receives a financial aid package that includes a federal loan of $5,000 and a work-study program worth $2,000. The cost of attendance at the student’s college is $20,000. If the student receives an outside scholarship of $3,000, the college will adjust the financial aid package as follows:
The outside scholarship will first be applied to the cost of attendance, reducing the student’s need to $17,000 ($20,000 - $3,000).
The EFC remains at $10,000.
The federal loan and work-study program will be reduced by the amount of the outside scholarship, to $2,000 and $1,000, respectively.
In this scenario, the outside scholarship does not exceed the cost of attendance minus the EFC and other financial aid, so it does not affect the FAFSA amount.
Conclusion
In summary, outside scholarships can reduce the FAFSA amount, but only if they exceed the cost of attendance minus the EFC and other financial aid. Students should carefully review their financial aid packages and outside scholarships to understand how they will impact their FAFSA amount.
Authoritative References Used: Federal Student Aid College Board Print: “Paying for College Without Going Broke”
God Bless You!
JC.