My D was lucky enough to be offered merit aid at a college she is excited about (Oxford at Emory), where we would also qualify for some Financial Aid. I know I have read that the merit aid usually just replaces FA, so it might be a wash (hoping this one at least replaces the loan and work study portion 1st) previous CC thread says “yes” to that one.
But someone on another thread mentioned something about the merit being an asset, and therefore affect the FA…but that made me wonder. Is the merit aid factored into the FA equation like a student asset (so assessed at 20%), or does it actually just replace the FA dollar for dollar?
I am checking with the school, but …it’s the weekend, so…
Financial aid money is not considered an asset.
Plus…how much of that financial aid would you have in the bank anyway the day you file your FAFSA? Presumably none…as you would be using it to pay college costs.
Most financial aid money never gets to you anyway. The school uses it to pay your bill. You would only get a refund if there was extra money in your bursar’s account.
@thumper1, I’m not sure I really expressed what I meant…
I don’t imagine D ever being given merit money as a check or cash…
but wonder if, as far as it affecting FA, it is calculated like a student asset is.
Say the student qualifies for 28k in FA, 8 of which is loan and work study, then gets an 18k merit award. If the 18K merit first covers the loan and work study, will the remaining 10k just replace 10k of the 28 FA, OR will that remaining 10k be viewed as a student asset, so only 20% of it is used to replace FA, the rest added to (stacked) the FA?
Financial aid is NOT a student asset. IF you have money from financial aid in your bank account…which is unlikely, it would not be a student asset. It would not be assessed at 20%.
Now…regarding merit aid and need based aid.
It all depends on the school and the school policy if the need based aid can be stacked (added to) merit aid. At most places, if you get a merit award, it reduces your financial need, and therefore reduces your need based aid. Usually the self help portions of need based aid are replaced first…so loans and work study. If the merit is more than that, sometimes it will reduce institutional grant aid as well. Not 20% of that merit aid, but all of it.
So if your student got $10,000 in merit aid, your need would be reduced by $10,000. Your aid would be reduced within the awarding policies of the college.
NOW…some schools do allow stacking of merit and need based aid up to the cost of attendance.
You need to inquire at each college to find out their policy.
In addition, if your student receives scholarship, and Grant money that exceeds qualified educational expenses (tuition fees, books, necessary supplies), then that scholarship or grant excess would be taxable income for your student.
But it would not be considered an asset. Ever.