<p>Hello SwimmingChicken!
Merit scholarships often do change the composition of need-based financial aid packages. All colleges and universities that distribute Federal financial aid (Pell Grants, Stafford and Perkins loans, PLUS loans, etc.) are required to consider merit scholarships as a resource when calculating need.</p>
<p>First, keep in mind that USC will calculate your need, not you, and they will use the CSS/Profile to distribute USC grants - so your FAFSA EFC does NOT apply. Use the institutional Method calculators available at the College Board website to get a rough estimate of how much you will be expected to contribute at a Profile school.</p>
<p>Some examples:</p>
<p>If they determine you can contribute $20,000, that would leave a need of $35,000. Your financial aid package would be calculated with Federal Stafford loans (approx $5,500 for a freshman), Federal work/study, and USC grants for a total package of $35,000. If you are awarded a Presidential scholarship, it is a resource and your need becomes $15,000. Your aid is calculated on that amout and would add up to $15,000. Either way, you end up with $35,000 from USC, so there is no “penalty” for receiving a scholarship.</p>
<p>If in that same scenario a student was awarded a Trustee scholarship, then the loans and work/study would be replaced by the scholarship, and the student would only receive the $40,000 Trustee - $5,000 more than they would have received in need-based aid.</p>
<p>Outside scholarships (non-USC scholarships) can generally be used to replace Federal Stafford loans and/or work/study, but there are a few exeptions.</p>
<p>I strongly recommend a book on financial aid called “Paying for College Without Going Broke” by Kalman Chaney. It is available at Amazon for about $15 and will be the best $15 you ever spend. Be sure to get the 2011 edition and read it before doing your CSS/Profile and FAFSA in January.</p>
<p>For some info from a parent (me) who has gone through the financial aid process specifically at USC, read the first few pages of <a href=“http://talk.collegeconfidential.com/university-southern-california/839970-faq-usc-financial-aid-2010-a.html?highlight=faq+usc+financial+aid+2010[/url]”>http://talk.collegeconfidential.com/university-southern-california/839970-faq-usc-financial-aid-2010-a.html?highlight=faq+usc+financial+aid+2010</a> and then you can search the thread for lots of questions that were asked last year.</p>
<p>Good luck!</p>