Do Scholarships Lower Financial Aid?
When it comes to paying for college, many students and their families are overwhelmed by the cost. The good news is that there are a variety of financial aid options available to help cover the cost of tuition, books, and other college expenses. Scholarships are one of the most popular forms of financial aid, but many students and families are unaware of how a scholarship will affect their other student aid.
A scholarship will affect your other student aid because all your student aid added together can’t be more than your cost of attendance at your college or career school. The cost of attendance includes tuition and fees, room and board, books and supplies, and other expenses. When you receive a scholarship, it reduces the amount of other student aid you can receive.
For example, if your cost of attendance is $20,000 and you receive a $5,000 scholarship, you can only receive up to $15,000 in other student aid. This includes grants, loans, and work-study. It’s important to note that scholarships are not counted as part of your expected family contribution (EFC), which is the amount of money your family is expected to contribute to your college education.
It’s also important to understand that not all scholarships are treated the same when it comes to financial aid. Some scholarships are considered “free money” and do not affect your other student aid. Other scholarships are considered “self-help” and are treated like loans or work-study.
When you apply for financial aid, you will be asked to list any scholarships you have received or plan to receive. This will help the financial aid office determine how much other student aid you are eligible for.
In conclusion, a scholarship will affect your other student aid because all your student aid added together can’t be more than your cost of attendance at your college or career school. It’s important to understand the different types of scholarships and how they are treated when it comes to financial aid. Knowing this information can help you make the most of your financial aid and get the most out of your college experience.