Pell Grant & Full-ride merit-based NSF Scholarship

Paying for College
21

I didn’t see Post 17 because I was posting at the time it appeared. @thumper1 is correct. Here is the regulation: https://ifap.ed.gov/fsahandbook/attachments/1617FSAHbkVol3Chapter7.pdf (page 3-142). You may want to direct your financial aid office to the regulation, which is contained in the Federal Student Aid Handbook (the financial aid bible). The relevant language:

PELL GRANTS AS FIRST SOURCE OF AID
Pell Grants are considered to be the first source of aid to the student, and packaging FSA funds begins with Pell eligibility. A correctly determined Pell Grant is never adjusted to take into account other forms of aid. Therefore, if a student’s aid package exceeds his/her need, you must attempt to eliminate the overaward by reducing other aid your school controls.

The Department issues Pell payment schedules that base the award solely on the student’s cost of attendance, EFC, and enrollment status. As we’ll see, aid from the other FSA programs must be awarded to ensure that the student’s need is not exceeded, unless certain types of aid are used to replace the EFC, as permitted.

Traditional financial aid practice suggests that you would also adjust non-federal aid awards, if necessary, to ensure that the student’s financial need is not exceeded. But it’s possible that the student will receive a scholarship or other aid that you can’t adjust and is large enough (in combination with the Pell Grant) to exceed the student’s need. In this case, the student is still eligible for a Pell Grant based on the payment schedule. However, you can’t award any FSA funds other than the Pell Grant.

(Note: FSA funds means Federal Student Aid funds - or Title IV federal aid)

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Sorry about that! I should have stated that it was purely opinions from admissions officers. I was shocked to receive different answers all over the place. I fear many students are being affected by this! Thanks for clarifying and sharing the regulation. This is good to know. I appreciate it. Not sure if I can delete my comment or edit it so someone isn’t confused but it looks like I cannot. Either way, thanks for clarifying!

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Financial aid rules and regulations are confusing, and not everyone is properly trained. Some of us here make it our mission to help students who have questions about their aid … because we know it’s confusing, and because we want to help. You learned something new, and that is a good thing! :slight_smile:

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Well, if by “scholarships” you include need-based institutional money, it makes perfect sense that those funds would be reduced if a student receives outside money. More outside money received by the student = less need.

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That is a good point. Schools that offer full rides with their own money will often include the Pell grant as part of the full ride - the school would contribute that much less of their own funding for a Pell-eligible student. That is perfectly acceptable under regulations.