A student receives a substantial private scholarship directly from an outside organization. How does this scholarship typically interact with a student's existing financial aid package, assuming the student still has unmet need?

✓ Correct Answer: Option B

Private scholarships generally first apply towards a student's unmet financial need. If the scholarship amount exceeds the unmet need, then it may lead to a reduction (displacement) of other aid in the package, typically starting with loans or institutional aid, to stay within the COA.