🏫 College Advising

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?

A The university will automatically increase the student's total grant aid by $5,000.
B The university will first reduce the student's federal loans and/or work-study 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.

✓ Correct Answer: Option B

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 students minimize debt while still benefiting from their scholarships.

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