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<p>While in many cases it’s true, it is too broad a statement. For instance, for your example of Yale, outside scholarships replace the student effort (about 4-5k) and, depending on the scholarship, could also pay for student health plan or a computer; after that it would take away from grant aid:</p>
<p>[Yale</a> University Financial Aid > About Outside Aid](<a href=“Welcome | Student Financial and Administrative Services”>Welcome | Student Financial and Administrative Services)</p>
<p>And as scm notes, Y is one of the most generous schools as they do not include loans in their FA packages, while most schools do.</p>
<p>If you are receiving institutional merit aid and get outside scholarships, some schools will cut you a check for any extra amount above the COA.</p>