<p>I have a question regarding financial Aid for following years.</p>
<p>S got a nice outside scharlorship which will replace all the loans and workstudy from his fin aid award package offered by the school. so for the freshman year, we will pay EFC+ outside scharlorship + school grant.</p>
<p>I am wonrering what is going to happen next year when school re-evaluate the aid package, do they consider ourside schalorship as student income and reduce the school grant, increase our loan part?</p>
<p>Couple issues here.</p>
<p>Scholarships are income in the eyes of the IRS – pretty complex area but basically, the portion of a scholarship that exceeds tuition, books, and supplies is taxable income, while the portion that goes toward tuition is untaxed income. BUT-- FAFSA doesn’t count that income against the student in calculating the EFC. (Not sure whether Profile does the same).</p>
<p>As to how the school will treat a one-time scholarship when preparing future aid packages-- I think most would replace the loans and workstudy in the original package that were bumped by the scholarship. But you’ll want to contact your schools FAO to make sure they are aware of the situation.</p>
<p>Thank you sblake7.</p>
<p>in our case, the outside schalorship is much less than tuition so we won’t have to pay tax. but the schalorship is renewable for 4 years.</p>
<p>My cercern is eventhough the school replace loan and workstudy this year, it may not be in the following year, the school may consider this outside schalorship as student income and give us more loan less grant.
I called the school, but got no clear answer on this. it is said grant is yearly based, anything could happen next year.</p>