A student receives a substantial private scholarship after their college has already awarded them a full institutional grant covering their Cost of Attendance. The college then reduces its institutional grant to account for the new private scholarship. This scenario is best described as what phenomenon?
✓ Correct Answer: Option C
Scholarship displacement occurs when a student's existing institutional or grant aid is reduced because they have received an outside scholarship. This can sometimes result in no net gain for the student despite earning an additional scholarship.