Outside scholarships does not always affect financial aid as I have seen mentioned.

If an outside scholarship replaces need based grants, or wipes all need based aid, make sure that financial aid keeps that file open for the student regarding the aid award. Some schools are not as generous to upperclassmen applying for financial aid when they did not as freshman and some even outright won’t give it. There should be no misunderstanding about the fact that the student applied and got financial aid, but the outside award preempted it. Sadly, I’ve seen this misunderstanding actually happen several times.