<p>Agree with FauxNom. Scholarships are considered a “resource” that reduces your need (not just at USC - this is the policy at virtually all colleges).</p>
<p>But in the example you give, there is an advantage to the NMF scholarship over the need-based aid it would replace. If you DID qualify for $20,000 in need-based aid, that aid would include Stafford Loans ($3,500 subs + $2,000 unsubs) and Federal work/study of about $2,000 - $3,000. Your scholarship would replace those, and you would still be eligible for up to $5,500 in unsubs Stafford. So with the $19,000 USC-NMF scolarship, the $1,000 NMF and the $5,5000 unsubs Stafford, you would get a package worth up to $25,500.</p>