<p>I have 2000 in outside scholarships. Should I eliminate my Perkins loans, Work-study, or expected summer earnings?</p>
<p>Elimate the loans because of interest.</p>
<p>your earnings are part of your EFC I have never seen students be allowed to reduce their EFC with scholarships.</p>
<p>If you are lucky they will allow you to reduce your loans- you shouldn’t reduce work study as that money is only for living expenses/books in most cases anyway- unless you are depending on it for tuition.</p>
<p>I thought scholarships are added to your EFC and then the school takes out what goes over the COA</p>
<p>The Perkins loan, if I’m right, doesn’t accrue interest until after graduation. This school says you can take it out of summer earnings. SHould I do that?</p>
<p>Actually, it says to give order of preference. So which should I do first, then second?</p>
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<p>Who is asking you to give your order of preference the school or the organization granting the scholarship. Over all the school would have the final say.</p>
<p>When a student recieves an outside scholarship, the school usually applied to to reduce the self help aid (loans, workstudy). I am also in agreement with those that say reduce the loans first. </p>
<p>I agree with EK that you should not reduce work study because monies from workstudy are usually your day to day pocket money. Also depending on the work study job, it may be good as you build your application post undergrad for work, grad or professional school.</p>
<p>My suggestion is to reduce the loans because they are a future monkey on your back.</p>
<p>Would it make sense to take it out of the expected summer contribution first so that it doesnt have to be paid now? I have 4 years anyway to pay the loans before they gain interest, and if I pay them before they do gain interest, does that make sense?</p>