Outside Scholarships for College - Part 2

How Much Can I Receive in Scholarships?

If you read Outside Scholarships for College - Part 1, then you are most likely hard at work researching and applying for college scholarships to offset your out of pocket costs. Have you done the calculations on how much you are trying to earn in scholarship money?

An often overlooked component to seeking scholarships is calculating your financial eligibility. Your total student aid, including federal or state need-based aid, subsidized loans, and scholarships cannot exceed your total cost of college. Of course, your total cost of college includes tuition, room and board (including off-campus housing), books, and school fees, so you do have many options for using your funds. But it’s important to keep in mind that the total amount of your scholarships could affect your financial aid.

How Do Scholarships Affect Financial Aid?

Always check with your school’s financial aid office to get answers specific to your circumstances. In general, if you earn scholarship money that exceeds your out-of-pocket costs after all financial aid is applied, then your school will typically reduce your need-based aid. When you receive your total in scholarship awards, report the amount to the financial aid office, and they will adjust your financial aid package accordingly.

The good news is that the scholarships will first reduce your need for student loans. That’s less money you’ll have to pay back after graduation. After loans, scholarship money would cut into grants and other types of aid.  

Can Scholarships Reduce My Merit-Based Aid?

The merit-based aid portion of your financial aid package will not be reduced by outside scholarships. Merit scholarships may be awarded for academic excellence, athletic ability, class rank, test scores, leadership skills, or many other factors. This aid is awarded without regard to need, so it is not affected by the amount of other scholarships.

If you earn enough money to exceed the cost of attendance, you may have to turn down some of your scholarship money. Again, always speak with your financial aid office. It may be possible to reserve your funds, whether school or outside scholarships, for a different academic year. Never assume that this is possible, though. Organizations who award scholarships often use those contributions in their tax planning, so it’s important to follow the terms of the award.

Earning too much money for college is probably a best-case scenario, but it’s certainly not a common one. More often than not, you will have some out-of-pocket costs for college, and scholarships are a great way to reduce them. As you receive scholarships, be sure to keep your financial aid office informed, and don’t be afraid to ask for guidance. They want you to be successful and financially responsible, so they are willing to help.

Are you at a loss as to how to start looking for college scholarships? Get in touch to schedule a strategy session to get you started.