Ethics of Outside Scholarships

curious14
Fri, 06 Jul 2007 12:44:27 +0000

Sorry if I am confusing the issue. As I understand the OP his/her child received need based financial aid from a college and some outside scholarship money. He/she is upset because they believe that the school will reduce its need based financial aid by the amount of the outside scholarships, if he/she reports them to the college. My understanding is that it is true that most colleges will do that. Reducing non grant monies first but ultimately even reducing need based grants by the amount of outside scholarship money. I also thought that they would do so for any additional income (and on an annualized basis, assets) that goes directly to the student. Your posts have led me to doubt this second belief. Perhaps the problem is that I am thinking about institutionlly funded need based aid. Your last post seems to imply that outside scholarships will not affect the need based award. That seems to imply that the OP has nothing to worry about. I am confused.