Do Scholarships Reduce Financial Aid?
For many students, the cost of college can be a major financial burden. To help alleviate this burden, many students turn to scholarships and other forms of financial aid. But, do scholarships reduce financial aid?
The answer is yes, scholarships can reduce financial 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. So, if you receive a scholarship, the amount of other financial aid you receive may be reduced.
It’s important to understand how scholarships and other forms of financial aid work together. When you apply for financial aid, the government or college will calculate your Expected Family Contribution (EFC). This is the amount of money your family is expected to contribute to your college costs. After the EFC is calculated, the college will subtract it from your cost of attendance to determine your financial need.
Your financial need is the amount of money you can receive in the form of grants, scholarships, and other forms of financial aid. If you receive a scholarship, the amount of other financial aid you receive may be reduced. This is because the total amount of aid you receive can’t be more than your cost of attendance.
It’s important to note that not all scholarships will reduce your financial aid. Some scholarships are “free money” and don’t count towards your cost of attendance. These scholarships don’t reduce the amount of other financial aid you can receive.
When you’re applying for scholarships, it’s important to read the fine print. Make sure you understand if the scholarship will reduce your financial aid or not. You may also want to speak to a financial aid advisor at your college to get a better understanding of how scholarships and other forms of financial aid work together.
In conclusion, scholarships can reduce financial aid. When you’re applying for scholarships, make sure you understand if the scholarship will reduce your financial aid or not. You may also want to speak to a financial aid advisor at your college to get a better understanding of how scholarships and other forms of financial aid work together.
