How Scholarships Affect Financial Aid – Understand How Scholarships Can Affect Your Financial Aid
Eagerness on the part of Students and families to reduce their cost of college is understandable as they spend numerous hours trying to locate and applying for scholarships awarded by private companies. It is very common thinking that only accomplished students with top academic and/or athletic achievements have a chance to score such scholarships. However they don’t know and realize that there are host of other ways to score scholarships, available from specific heritage organizations and others to encourage students to pursue a career in a specific field.
Students should apply for scholarship for which they may qualify. Furthermore to looking at national scholarships for which competition may be intense, do research to find scholarships available at local or regional levels. Look into organizations that your family is involved in or work for, unions that parents are members of, community organizations in your local community, or scholarships offered by the trade association in the area of studies that you are going to pursue.
You must not miss any scholarships that you think you can et but as you do that understand that certain scholarships can affect your financial . Some of the impacts of scholarship on financial aid are as below:
You may receive get financial aid
Colleges determine your need-based aid by subtracting your Estimated Family Contribution (EFC) from the cost of attendance. If your total financial aid package — including outside scholarships and need-based aid—comes to more than $300 above your calculated need, your college must reduce the amount of need-based aid you receive. If you don’t tell your school about the scholarship, you may have to pay back the “over-award.”
Don’t Dismay as Less financial aid is not necessarily a bad thing
It’s up to your school to decide whether to cut back your financial aid package by reducing the amount of federal loans or grants that you receive. If your college doesn’t state its award displacement policy on its website or how it treats private scholarships, contact the school’s financial aid office.
If your financial aid office decides instead to reduce your grant award, the amount you need to borrow won’t be affected.
Remember Scholarships may not automatically renew
Some scholarships are for one year only, and others have certain requirements such as students maintaining a certain grade point average (GPA). Read the fine print on your award so that you know how much money you can expect in subsequent years and what, if anything, you need to do to reapply.
Be sure to update your Free Application for Federal Student Aid (FAFSA) each year to reflect changes in private scholarships. If your scholarship amount goes down but your financial need remains the same, then you should talk to your school about increasing your aid package to make up the difference.
Also, there are scholarships open to enrolled students and upperclassmen, so remember to keep applying once you get to school and then again each year in college. While it’s important to keep in mind how scholarships may affect financial aid, in most cases, scholarships reduce the amount you need to borrow (and ultimately pay back) to fund your education.