🏫 College Advising

A student receives a generous private scholarship from an outside organization. How might this scholarship typically impact the student's existing financial aid package from their university?

A It will always reduce the amount of federal grants the student receives.
B It may first reduce the student's unmet need, then self-help aid (loans, work-study), and potentially institutional grants.
C It will only replace the Expected Family Contribution (EFC) or Student Aid Index (SAI), leaving other aid unchanged.
D Universities are prohibited from adjusting financial aid packages due to outside scholarships.

✓ Correct Answer: Option B

Universities typically follow a "packaging philosophy" where outside scholarships first fill unmet need, then reduce self-help aid (loans/work-study), and finally institutional grants to prevent over-awarding federal or institutional funds.

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