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No, this is standard at all colleges and universites due to federal and state regulations. If schools do not replace need-based funds first, their students would not be eligible for any state or federal aid such as Pell, Cal Grant, Stafford loand, Perkins loans, etc. USC is one of the more generous schools in terms of outside scholarships - some reduce university grant first (or do not award university grants).</p>
<p>If you do apply for or win more scholarships, it is also worth a try to ask the scholarship sponsore if they can defer the award one or more years - most of thgese outside scholarships are 1-year only, and if the sponsore will award it next year it could cover those loans or work/study.</p>