Federal
regulations and school policies require the financial aid
office (FAO) to consider all sources of aid received by a
student when determining eligibility for financial aid. You
are required to report any external award, regardless of amount,
in writing to the school’s financial aid office. An
external award that you receive will be taken into consideration
when calculating your financial aid package, which is often
counted 100% toward meeting your financial need.
If you receive an external award not listed in your award
letter, the financial aid office is required to re-evaluate
your financial aid package and possibly reduce certain financial
aid to remain in compliance with federal regulations and school
policies. For federal financial aid programs and any need-based
financial aid, the total financial aid package a student receives
cannot exceed the school’s estimated cost of attendance.
If the external award affects your existing financial aid
package, the financial aid office may have to make adjustments
by reducing some of your financial aid, and you may owe money
back. Reductions in your financial aid package are typically
made in the following order: any unmet need, self-help aid,
and then need-based grants. The FAO will allow outside awards
to replace unmet need or self-help aid to a maximum of the
loan or work-study in your financial aid package. Every effort
should be made not to reduce need-based grants unless required
by federal or state regulations and school policies. An external
award cannot be used to replace a part of your expected family's
contribution.
External awards include, but are not limited to:
• Prepaid
Tuition Plan
• Employer
benefits
• VA Educational
Benefits
• Any Tuition
Benefits
• Non-Service
Fellowships
• Vocational
Rehabilitation Benefits
• RA Benefits
• Graduate
Assistantship
• Social
Security Educational Benefits
• Americorps
• ROTC
Benefits
• Private
Scholarships and Grants
It is up to you to decide whether or not to inform your
school’s financial aid office about any external award(s),
not listed on your award letter. If you do not notify your
school’s FAO, they may eventually find out about your
external award. Usually, this occurs whenever the organization
submits the scholarship check directly to your school. If
this is the case, they will make adjustments as necessary.
Avoid unpleasant surprises of receiving reduced aid or owing
money back to either the federal/state government or your
school. If you are unsure about how your external award(s)
will affect your financial aid package, contact your school's
financial aid administrator to discuss your situation.
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