When a student receives an external scholarship from a private organization, how does it most commonly affect their financial aid package from the institution?

The correct answer to the question "When a student receives an external scholarship from a private organization, how does it most commonly affect their financial aid package from the institution?" is Option B: The institution may reduce the student's unmet need by first decreasing loans or work-study, then institutional grants..

The other options — A) It always results in an increase in the student's federal Pell Grant award., C) The institution is legally prohibited from adjusting its original aid offer., D) It only impacts the student's Cost of Attendance (COA) and never their aid eligibility. — are incorrect for this College Advising question. As explained above: When a student receives an outside scholarship, institutions generally adjust the aid package to ensure total aid doesn't exceed need. They typically reduce self-help aid (loans, work-study) before r…