A student receives a $5,000 outside scholarship after their initial financial aid offer. Which of the following is the most likely outcome for their revised aid package?

The correct answer to the question "A student receives a $5,000 outside scholarship after their initial financial aid offer. Which of the following is the most likely outcome for their revised aid package?" is Option B: Their institutional grant aid will be reduced to prevent over-awarding..

The other options — A) Their federal Pell Grant will be reduced first., C) Their federal student loan eligibility will increase., D) Their Expected Family Contribution (SAI) will decrease. — are incorrect for this College Advising question. As explained above: When a student receives an outside scholarship, institutional grants are often reduced first to prevent 'over-awarding' (exceeding financial need or Cost of Attendance) before federal grants or loans…