<p>How do colleges incorporate outside scholarships? Do they reduce the amount of loans in your package, or do they reduce the aid they give?</p>
<p>Check the college financial aid link. To their credit, more colleges are explaining their policies on outside scholarships. </p>
<p>A common policy is one where the scholarship would be applied to the unmet need (gap) or if the college has met full need, it will first go to toward self-help portions such as workstudy, Perkens and Stafford loan. </p>
<p>In rare instances it will go toward reducing the parent contribution (PC). </p>
<p>As I said, check the website or, if not explained there, simply call FA office.</p>