<p>If we accept the unsubsidized Stafford loan and then my son wins an outside scholarship, do we have to report the scholarship? The school website says to report all outside scholarships, but a Stafford is though a lender not through a school - and it is a loan.</p>
<p>You should go ahead and report them but Unsubsidized Staffords are not need based (and are available to everyone) so should not be affected by outside scholarships. So, assuming you have no other 'need based aid such as grants etc, reporting the scholarship should have no affect.</p>
<p>While the Stafford is a loan and may be done thorugh a lender, not the school, it is still federal funding and the DOE requires the reporting of all sources of educational funding. The reason is because your Stafford Loans, whether subsidized or unsubsidized, plus all other sources of aid, including outside, private scholarships, cannot equal more than the Cost of Attendance. If your sons outside scholarships, plus other aid is more than the Cost of Attendance, the school has to reduce the aid you are receiving. In some cases, it affects school based aid, but in other cases, the loans are reduced.</p>