PRIVATE SCHOLARSHIPS AND GRANTS:

Do they affect your overall Financial Aid Eligibility?

You may be lucky enough to receive some outside financial aid from private parties. Be aware that these funds can affect your financial aid status at the college you choose to attend. Colleges ask that you inform them of any awards made directly to you. These scholarships are taken into consideration in calculating your total financial aid package.

Questions to consider:

Why do I have to report my private scholarships or grants to the college I want to attend?

Can private sources of financial aid affect how much aid I receive from the colleges?

Can private sources of aid affect state and federal scholarships and grants?

Should I ask how private aid might affect my other sources of aid?

Why do I have to report the amount of my private scholarships or grants to the college I want to attend?

Most colleges count these moneys toward the self-help part of your financial aid package, thereby reducing the amount of loans or work-study awards. When you receive outside funding, the colleges want to be aware of it so they can adjust your financial aid package in ways that could help you, such as reducing the amount of loans you might have to take out to meet your financial need.

Can private sources of financial aid affect how much aid I receive from the colleges?

It depends on the college. Different financial aid offices have various ways of deciding on how to distribute their aid packages when you add in private funding.

Can private sources of aid affect state and federal scholarships and grants?

It is possible that private sources of aid could make a difference. For example, in many states, the colleges will inform state grant programs of your private scholarships. This information could then affect any state grant awards that you might receive.

Should I ask my target colleges how outside financial aid might affect my other sources of aid?

Yes. Contact the colleges in which you are interested to find out what approach they take when adding in private grants or scholarships. As you receive these scholarships and let the colleges know about them, discuss your preferences about how these outside sources of aid MIGHT be used in your financial aid package. Each college makes the final decision on the structure of its package, although your input is considered within the policies it must follow.