How does "scholarship displacement" typically affect a student's financial aid package?
A
It always reduces the student's Expected Family Contribution (EFC) or Student Aid Index (SAI).
B
It may lead to a reduction in institutional grants or federal need-based aid.
C
It primarily increases the student's eligibility for federal unsubsidized loans.
D
It guarantees an increase in the total amount of gift aid received.
✓ Correct Answer: Option B
Scholarship displacement occurs when a new scholarship reduces other forms of aid a student has already been awarded, often institutional grants or federal need-based aid, instead of reducing the student's out-of-pocket costs.
💡 Why is B) the correct answer?
The correct answer to the question "How does "scholarship displacement" typically affect a student's financial aid package?" is Option B: It may lead to a reduction in institutional grants or federal need-based aid..
The other options — A) It always reduces the student's Expected Family Contribution (EFC) or Student Aid Index (SAI)., C) It primarily increases the student's eligibility for federal unsubsidized loans., D) It guarantees an increase in the total amount of gift aid received. — are incorrect for this College Advising question. As explained above: Scholarship displacement occurs when a new scholarship reduces other forms of aid a student has already been awarded, often institutional grants or federal need-based aid, instead of reducing the stu…
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