A student receives a $5,000 external scholarship after their initial financial aid package from the university is awarded. The university's scholarship stacking policy dictates that external scholarships will first reduce self-help aid before affecting institutional grants. How will this scholarship most likely impact the student's existing financial aid offer?

The correct answer to the question "A student receives a $5,000 external scholarship after their initial financial aid package from the university is awarded. The university's scholarship stacking policy dictates that external scholarships will first reduce self-help aid before affecting institutional grants. How will this scholarship most likely impact the student's existing financial aid offer?" is Option B: The university will first reduce the student's federal loans and/or work-study by $5,000..

The other options — A) The university will automatically increase the student's total grant aid by $5,000., C) The university will reduce institutional grants by $5,000, dollar-for-dollar., D) The scholarship will have no impact on the existing aid package unless the student's Cost of Attendance is exceeded. — are incorrect for this College Advising question. As explained above: University scholarship stacking policies outline how external scholarships are applied. Often, self-help aid (loans, work-study) is reduced first before institutional grants are impacted, helping stu…