Outside scholarships does not always affect financial aid as I have seen mentioned.
Generally, outside scholarships reduce the amount of financial aid received because the amount of need goes down. I have seen it mentioned that some schools are nice about it and first reduce work study and loans and only then tap into the need based award received. I have seen a number of students upset that they worked hard to get a scholarship and the financial aid package received is similar with or without the outside scholarship. Well, my son received an $8,000 outside scholarship. For his first 3 years of college they have not been so harsh with applying the outside scholarship. In his case, he also has a $5K extra scholarship from the college that eliminated the work study. Then the outside scholarship reduced the amount of subsidized loan by about $3K and reduced the amount of aid by $1,500 to $2,000 (depending on the year). That's it. In other words, from the part of the aid package I care about, at most 25% of his award went away. I know this depends on the school, but just thought I'd post this if anyone thinks it's not worth it to apply for outside aid.23 replies