<p>Do schools that meet 100% of need ever give more need than the FAFSA EFC indicates? including outside scholarships that is usually subtracted from the institutional grant.</p>
<p>Are they legally bounded to not give more than what FAFSA displays? Reading through school’s sites, it seems as if this is the case.</p>
<p>“Under federal law and [insert school] policies, no student may receive more financial aid than meets his/her demonstrated financial need.”</p>
<p>I am speaking with regard to the poorer end of the spectrum where FAFSA EFC < 2500.</p>
<p>The federal law only applies to federal aid.</p>
<p>A school can give you more of THEIR aid or you can receive outside aid that covers EFC, but then the fed aid starts going away…except for Pell (I think). </p>
<p>So, if you were given a “full COA ride scholarship” to some school (money from the school), then your subsidiized loans, work study, SEOG grants or other fed aid would go away. Pell is an entitlement, so I think you still get that no matter what.</p>
<p>Look at it this way. Our EFC exceeds the cost of a school, yet my kid has a large merit scholarship. So, his merit aid reduces what we’re supposed to pay. But none of it is federal aid.</p>
<p>As Mom2, states, there are federal laws that prevent giving federal money above and beyond need. Pell grants are exempt from this. But that’s really about it when it comes to pure grant money. YOur student is still entitled to the full Stafford loan amount, but would lose the subsidy which is the zero interest while in school (but that is only for a portion of the loan) and the lower interest rate (which may still be a point of contention next year anyways).</p>
<p>However, some schools have an internal policy that they will not grant money over the EFC generated need, and may include PELL money. Schools can do what they want with their own money and, yes, some will offset for every and any amount a student gets. You have to look at each school’s policy on this as they can differ widely. so it 's the “[insert school]'s policy” that really comes into play here, since federal policy would let you keep the PELL.</p>