Pell Grant & Full-ride merit-based NSF Scholarship

Hi, I have a quick question about receiving a full-ride merit-based Federal scholarship and the Federal Pell Grant.

Specifically, I received a merit-based scholarship from the National Science Foundation (NSF) that exceeds my university’s Cost of Attendance (basically, the NSF scholarship covers full tuition and also provides a stipend for cost of living, books, etc.). If needed, more information is available about my NSF scholarship, the CyberCorps: Scholarship for Service, here: https://www.sfs.opm.gov/StudFAQ.aspx . I also completed the FAFSA and, even with including my National Science Foundation scholarship on the FAFSA, I still have an EFC of 00000 meaning I qualify for the maximum Pell Grant.

So, this brings me to my question. I was awarded the Pell Grant in my financial aid package but my university removed it after adding my National Science Foundation scholarship to my financial aid package. The reason my Pell Grant was removed was because, according to my university’s financial aid office, a student cannot receive Federal financial aid over the university’s Cost of Attendance, period.

I definitely understand that need-based Federal aid, except the Pell Grant, cannot exceed a student’s Cost of Attendance but I am not aware that Federal merit aid is bound by that same restriction unless specifically stated for that student aid program. For instance, I notice that other Federal student aid programs, whether merit or need-based, have rules that you cannot also receive the Pell Grant or other Federal student aid…here is an example from the Federal SMART Scholarship: “SMART Scholarship Program Participants do not accept funding from federal scholarships, fellowships, grants (including the Federal Pell Grant) or other federal funding sources”. However, from what I can tell, the National Science Foundation scholarship I am receiving has no restrictions on receiving the Federal Pell Grant. In fact, the reasoning “a student cannot receive Federal financial aid over the university’s Cost of Attendance” makes no sense to me because already my National Science Foundation scholarship exceeds the university’s Cost of Attendance but the dollar amounts for the scholarship are set by the National Science Foundation and cannot be reduced by the university.

In conclusion, my understanding is that I do in fact qualify for both my NSF merit-based Federal scholarship as well as the need-based Federal Pell Grant. I do not, however, qualify for other FSA like the Federal Supplemental Educational Opportunity Grant (FSEOG) because my current aid package exceeds the university’s Cost of Attendance.

If someone can help me with explaining this to my university’s financial aid office or help me understand where my information is incorrect, I’d seriously appreciate it. Thanks so much for any insight and if anyone needs anymore information, please just let me know. Thanks again!!!

Are you an incoming freshman? If so, why did you include the scholarship on FAFSA as 2015 income since you won’t receive it until 2017-2018?

It’s disappointing if you can receive the Pell grant because you are going to need cash to pay for any federal and state income taxes on the scholarships/aid that exceed tuition.

@kelsmom could you read this one and comment?

I thought the Pell was an entitlement that was given regardless of other aid received. And that a Pell could be awarded even IF a student has a full merit award.

Oops, let me clarify. When I was a freshman, my NSF scholarship was not on the FAFSA since yes, I had not received the income yet, and my EFC was 00000. The university gave me the Pell Grant last year with the NSF award.

However, this year, I included the NSF award on my FAFSA and my EFC was still 00000. BUT, the university this year said they made a mistake and I’m not actually supposed to receive the Pell Grant with the NSF award and removed the Pell Grant (oddly, the university made no mention of taking the Pell Grant back from last year…). I think the university is wrong and I’m supposed to receive the Pell Grant along with my NSF award.

As for the taxes, I already have to pay taxes on my NSF scholarship and the Pell Grant would help me to do so. I’m a first generation college student with no family support so anything helps. :slight_smile:

Wait. Because this was a full ride…some of the scholarship was for room, board and persona expenses, right? That amount is considered taxable income. What was that amount? Is it possible that amount made you NOT eligible for,the Pell?

What was your FAFSA EFC?

Yup, I paid taxes on that income. The NSF stipend is about $22,000 (room/board/personal expenses/etc.) and even with the full NSF scholarship/stipend factored into my income, my EFC for this year was still 00000.

I think the university is confusing this NSF scholarship with other Federal programs like the TEACH grant, SMART, etc. because from what I can tell, there is nothing prohibiting me from receiving the NSF award and the Pell.

So you had your income…but what about your parents’ incomes?

If your FAFSA EFC is $0, I think you would,still get the Pell…

@kelsmom

Yup, my parents’ incomes were included both last year and this year on my FAFSA. My EFC was 00000 for both years.

I figured at the very worst, the university would be able to look at my Cost of Attendance and add in things that aren’t listed like health insurance so I could get the Pell Grant. But regardless, I’m fairly certain they’ve made a mistake and I can receive Federal aid over Cost of Attendance given this situation.

If the student has an automatic $0 from the parents, she may not even have to include her own income on FAFSA. It may depend on the state of residency whether the skip-logic kicks in.

I think the OP is correct and she can get the Pell. Football players who get full tuition, room, board, fees, books, and now a stipend can still get the Pell grant, and that would be in excess of the COA (since the stipend pretty much is the remaining COA after all billed costs).

The school is saying that you can’t receive FEDERAL financial aid over the COA. Maybe that’s the difference, if the NSF is considered federal financial aid while the football athletic aid would not be federal aid, an outside Coke or Gates or Elks scholarship wouldn’t be federal aid so the Pell could be combined with the non-federal aid and cause an overage.

Good luck. I think you are right to fight it.

The taxable portion of scholarships (i.e. included in AGI) are subtracted back out in calculating EFC.

Don’t you have to sign a thing saying you will use federal student aid only for educational purposes? If the NSF scholarship already includes 22K stipend above tuition, what would the Pell Grant money be used for that would be justifiable under that?

There may be exceptions to Pell entitlement when the Feds are already providing a full ride, like NSF or maybe even military service academies.

Or maybe the Pell really was awarded, but the other award was reduced for that amount.

I am confused. I thought the NSF cybercorps scholarship for service scholarship was only for 2 years, junior and senior year of a bachelor’s degree, or for graduate degree. I also thought that it mostly covers tuition. I did not realize it covered $22,000 over tuition.

So are you now in your senior year?

Did you contact the NSF to find out what the rules are?

Your taxable amount of the scholarship is anything above tuition, fees, books.

Then on the FAFSA you only include the taxable scholarship amount that was reported on your tax return, as part of AGI.

You don’t report the full amount of the scholarship on the FAFSA.

Three years for the scholarship

@Erin’s Dad thank you, I read the info in the link and it does say three years.

Ok…so is it possible that this poster is now in the masters level of receiving this grant? If so, she would not be eligible for the Pell which is for undergrads only.

Hi everyone - thanks so much for the responses.

I used freshman as in “first year I received the NSF scholarship” to try to make it less confusing - which in turn made it more confusing - but you are correct, the scholarship is for juniors and so my first time receiving this scholarship was last year as a junior. I am now a senior and so yes, I do still qualify for the Pell Grant.

@twoinanddone I think provided a great example and said EXACTLY what I need to figure out: “The school is saying that you can’t receive FEDERAL financial aid over the COA. Maybe that’s the difference, if the NSF is considered federal financial aid while the football athletic aid would not be federal aid, an outside Coke or Gates or Elks scholarship wouldn’t be federal aid so the Pell could be combined with the non-federal aid and cause an overage.”

At this point, it sounds like something only the NSF is going to be able to answer unless there is a defined answer somewhere for Federal merit aid combined with a Pell Grant (Federal need aid).

Also, just as a quick side note, this NSF scholarship is offered at quite a few schools and I recommend checking it out if you’re interested in a cybersecurity career in the U.S. government!

I actually did some research on this because I thought it was insane that schools could reduce scholarships based on students receiving outside money. The rule of thumb I largely received was once the student hits the total cost of attendance (which is calculated student-by-student based on EFC and the school’s calculated expected cost,) the first to be removed will be any need-based loans, then work study, then any other federal money. Believe it or not, I had one college say the Pell Grant can never be taken away… so unfortunately, it seems to be a school decision. Either way, if you receive a scholarship that fulfills the total cost of attendance, the common response is that federal money would then be taken away.

You are 100% correct - you should receive the Pell grant. Pell is an entitlement and is NOT reduced even when there is other non-federal aid in excess of COA. This is a very basic rule, and the school cannot cancel it. Sometimes the terms of a scholarship are such that the scholarship has to be reduced by the amount of the Pell grant, and that is okay - because your are getting the Pell. But Pell always has to be awarded if the student has Pell eligibility. Please contact your financial aid office again. Ask to speak with a manager. If they still tell you the Pell has to be reduced, ask them to send you the federal regulations that state this. Post here again after you talk with them, and let us know what they say. If they still say no Pell, I have advice on what you should do next.

@scholarshiptips

Please read post 18 by @kelsmom. She is a financial aid officer. What you posted in post 17 is not accurate.